February 7, 2024 As part of the overall trend towards relying on automated and AI-driven products in every aspect of life, the financial markets have also witnessed a significant surge in the adoption of automatic trading in recent years. This move has completely transformed the way financial assets are bought and sold.
Nevertheless, there is no other market where this paradigm shift was more notable than the world of cryptocurrencies. The massive rise in the use of trading bots, specifically in the crypto verse, can be attributed to several advantages that algorithmic trading possesses over traditional methods.
Although trading bots effectively minimize the risk associated with crypto trading, it is vital to note that there is no such thing as a completely risk-free investment opportunity. That’s why doing your own fundamental and technical research, ideally pulling from multiple sources, is super important.
With that being said, let’s examine the different kinds of trading bots Cornix offers and explore why we believe our range of trading solutions might be the best option for all kinds of traders, including yourself.
Let’s dig in!
DCA, also known as Dollar-Cost-Averaging or Distributed-Cost-Average, is likely the most popular investment strategy across the financial world. It is well-known as one of the best strategies to implement in high volatility markets such as cryptocurrencies.
The logic behind the DCA strategy is very simple. Making a large lump-sum investment in an asset comes with the risk of a high price at a bad time. Instead, the investment is divided into smaller amounts that are invested separately and regularly according to a set of predefined criteria.
The classic DCA strategy refers to purchasing an asset with the same fixed amount at recurrent fixed intervals, regardless of market conditions (for example, buying $50 worth of ETH at the beginning of every month). This strategy aims to mitigate price volatility when taking a long position on an asset.
While this version of DCA might be very successful for certain assets and/or in specific time frames, this basic method doesn’t consider changes in the asset price, which, unsurprisingly, comes with some risks and limitations.
The Cornix DCA Bot enables traders to improve and optimize the DCA strategy by timing their purchases according to actual market price action, not just by relying on a predetermined schedule. With the Cornix DCA Bot, traders can now configure their own DCA settings by themselves or simply copy DCA settings from elite traders in the Cornix community.
The general workflow of the Cornix DCA Bot is to immediately enter a trade once it is activated. Then, the bot will continue to purchase more as the price goes down, according to predefined settings (for example, to buy more XRP with every 1% decrease from the last buying price). Once market conditions allow the bot to reach its take-profit goal, it automatically initiates a sell order. When a trade is closed, either by successfully reaching the take-profit goal or by reaching the stop-loss price benchmark, the bot will initiate another buy order to start a new trading cycle, and so on.
By allowing traders to easily set up multiple concurrent trailing orders, stop-losses, and other features as part of their DCA trading strategy, the Cornix DCA Bot makes it possible for traders to take full advantage of market conditions, accumulate assets and profits, all the while, minimizing risk.
To maximize the abilities of the Cornix DCA Bot, traders should program the trading bot to activate purchase orders while the price of a cryptocurrency is either on a downward or sideward trend and to take profit on those positions once prices are trending upwards.
More information about the Cornix DCA Bot can be found here:
DCA bots. Buy low. Sell high. Automatically
While most traders find the dramatic swings of the bullish and bearish market conditions exciting, the truth is that most of the time (some studies suggest up to 70% in the case of cryptocurrencies), the market is in a state of ambiguity without any clear direction.
For this reason, grid trading is one of the most commonly used strategies in the crypto verse, as it’s known as one of the best strategies traders can utilize once they’ve identified a sideways trend.
Grid trading relies on the assumption that an asset is currently trading within a horizontal channel with a distinct price range. After establishing that, the next step would be to “lay out the grid” by defining buy-limit orders close to the bottom part of the range (the resistance level) and sell-limit orders close to the upper part of the range (the support level), or vice-versa for a short position.
The main goal of the grid strategy is for traders to generate a steady income. At the same time, prices fluctuate sideways between the top and the bottom borders of the price range as the market is consolidating in anticipation of the next big upswing or downswing in prices.
A recent example of this strategy can be found by looking at BTC’s price action throughout 2023. As you can see in the chart below, from mid-March up until the last week of October, BTC was trading sideways between the $24,815 to $31,765 resistance levels (approximately). An overly simple and straightforward implementation of the grid strategy for that period would be to define a buy-limit order slightly above the bottom of the range (say $25,000) and a sell-limit order (around the $30,500 price mark).
https://www.tradingview.com/chart/qePaLLMO/?symbol=BITSTAMP%3ABTCUSD
With the Cornix Grid Bot, traders can now take the grid trading strategy to the next level with the ability to pre-define the entire grid of price triggers to initiate transactions, determine position size for each trade, and define stop-loss and take-profit goals. Supported by Cornix’s user-friendly interface, traders can now seamlessly put this grid of set parameters into the market, where they would work automatically, 24/7.
More information regarding the Cornix Grid Bot can be found at:
Grid bots. Profit from any small price change. Automatically.
Tradingview is the largest social network and charting platform for investors and traders – used by over 50 million amateur, professional, and retail investors worldwide.
The Tradingview platform has over 400 built-in indicators and strategies suitable for all market conditions, more than 110 intelligent drawing tools, and various other instruments for in-depth market research and analysis.
As an open-source platform, Tradingview users can fully customize their alerts, develop their own strategies and indicators using pine scripts, or purchase pre-made signals from other community members (more than 100,000 free and paid options).
The Cornix Tradingview Bot enables traders to harvest the full range of capabilities of Tradingview by setting up alerts and trading signals directly from the Tradingview platform into crypto exchanges. It is the perfect tool that combines advanced automatic abilities to implement more sophisticated trading strategies than the average trader in the crypto market.
Tradingview also offers traders the option to evaluate strategies by practicing paper trading to see how they perform in the actual market before taking the strategy live. Another great feature of Tradingview is the opportunity to back-test their trading strategies on historical market data, including on-chart tracking and detailed performance reports.
Since the enormous functionality of Tradingview might be overwhelming for novice traders with limited experience, we recommend the Cornix Tradingview Bot only for traders with previous knowledge in technical analysis and other more complex trading concepts.
More information regarding the Cornix Tradingview Bot can be found at:
Trade on your terms. Automatically.
If you have made it this far, it is safe to assume you are ready to take your first steps towards automatic trading. If you find all of the above overwhelming, Cornix Auto-Trading is your best starting solution.
Cornix Auto-Trading offers novice and advanced traders complete automation of their entire trading activity without wasting unnecessary time or effort. With Cornix Auto-Trading, traders can automatically copy the trades of some of the top traders in the crypto world.
Telegram and Discord signal groups are the fastest way to receive real-time insights into the cryptocurrency market. These channels, which are gaining popularity daily, provide traders with actionable signals to help them effortlessly identify potential trading opportunities.
In short, Cornix Auto-Trading enables traders to yield from the experience and knowledge of the sharpest minds in the crypto verse by converting signals from your favorite channels into market orders. It executes those transactions automatically at lightning speed, without any other action needed from you except counting your profits.
The success of Cornix Auto-Trading depends almost entirely on the quality of the signals received from third parties of your choosing. Therefore, we highly recommend that traders conduct in-depth research before registering any signal channel and connecting it with Cornix Auto-Trading.
A good place to start with this kind of research would be to explore the past performances and historical success rate of those potential signal subscriptions. For some channels, this can easily be done through the Client Portal on the Cornix website. Other useful resources might be other Cornix community members, previous or existing channel subscribers, Reddit, Discord, Telegram, and many more.
A partial list of the Telegram Channels that are supported by our technology can be found here:
Supported Groups: The largest Crypto signal provider marketplace
More information regarding Cornix Auto-Trading can be found here:
AutoTrading: Set up your automated trading by copying expert trading groups
