strategies-for-trading-cryptocurrency-during-a-correction,-explained

Strategies for trading cryptocurrency during a correction, explained

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What is Bitcoin? How does blockchain work? How to mine cryptocurrency? We are glad to help you answer these questions with our quick guides in Explained section.

n”,”seo_description”:”What is Bitcoin? How does blockchain work? How to mine cryptocurrency? We are glad to help you answer these questions with our quick guides in Explained section.”},”words_count”:629,”description”:”What do market corrections mean for crypto traders? And how can trading bots be used to an investor’s advantage?”,”author”:{“id”:1347,”title”:”Sarah Jansen”,”url”:”sarah-jansen”,”twitter”:””,”google_plus”:””,”photo”:”https://s3.cointelegraph.com/storage/uploads/view/87b0b4c392f9abc8f9ad3be57cacdbfd.jpg”,”gender”:”female”,”description”:”Sarah Jansen is a seasoned marketing professional and cryptocurrency enthusiast. After graduating with a Bachelors Degree in Marketing from the University of Calgary, she began writing for a number of cryptocurrency news sites and exchanges. She continues to share her passion for writing through her work in the DeFi, FinTech and IoT space.”,”facebook”:””,”email”:””,”linkedin”:””,”created_at”:”2021-08-16 14:46:18″,”updated_at”:”2021-10-20 16:04:34″,”deleted_at”:null,”avatar”:”https://images.cointelegraph.com/images/150_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy84N2IwYjRjMzkyZjlhYmM4ZjlhZDNiZTU3Y2FjZGJmZC5qcGc=.jpg”,”hash”:”aHR0cHM6Ly9jb2ludGVsZWdyYXBoLmNvbS9hdXRob3JzL3NhcmFoLWphbnNlbg==”,”relativeUrl”:”https://cointelegraph.com/authors/sarah-jansen”,”user_id”:1347,”language_id”:1,”name”:”Sarah Jansen”,”desc”:”Sarah Jansen is a seasoned marketing professional and cryptocurrency enthusiast. After graduating with a Bachelors Degree in Marketing from the University of Calgary, she began writing for a number of cryptocurrency news sites and exchanges. She continues to share her passion for writing through her work in the DeFi, FinTech and IoT space.”,”seo_title”:””,”seo_description”:””,”enabled”:1,”show_in_authors”:0,”show_in_experts”:0},”category_id”:65,”audio”:”https://s3.cointelegraph.com/audio/79976.18e900f2-a16d-4dac-8167-372b6ff49a62.mp3″,”tags”:[{“name”:”Blockchain”,”uri”:”/tags/blockchain”,”super”:1,”page_title”:”Blockchain News”},{“name”:”Cryptocurrencies”,”uri”:”/tags/cryptocurrencies”,”super”:0,”page_title”:”Cryptocurrencies News”},{“name”:”Bot”,”uri”:”/tags/bot”,”super”:0,”page_title”:”Bot News”},{“name”:”Trading”,”uri”:”/tags/trading”,”super”:0,”page_title”:”Trading News”}],”tag_title”:”Blockchain”,”date”:”1 HOUR AGO”,”badge”:{“title”:”Explained”,”label”:”default”},”qty”:52,”stats_pixel”:”“,”stats_pixel_url”:”https://zoa.cointelegraph.com/pixel?postId=79976&regionId=1″,”shares”:6,”infographic”:false,”sponsored”:false,”explained”:true,”press_release”:false,”show_referral”:false,”social_description”:””,”social_translators”:{“clipboard_popup_label”:”Link copied”,”socialWechatFooterError”:”WeChat error”,”socialWechatFooterText”:”WeChat share”,”socialWechatHeaderText”:”WeChat share”},”social_shares”:{“post_id”:79976,”post_url”:”https://cointelegraph.com/explained/strategies-for-trading-cryptocurrency-during-a-correction-explained”,”post_titles”:{“normal”:”Strategies for trading cryptocurrency during a correction, explained”,”twitter”:”Strategies for trading cryptocurrency during a correction, explained”},”post_text”:{“normal”:”Strategies for trading cryptocurrency during a correction, explained”,”twitter”:”Strategies for trading cryptocurrency during a correction, explained https://cointelegraph.com/explained/strategies-for-trading-cryptocurrency-during-a-correction-explained via @cointelegraph”},”accounts”:{“twitter”:”@cointelegraph”}},”socials”:{“facebook”:{“url”:”https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fcointelegraph.com%2Fexplained%2Fstrategies-for-trading-cryptocurrency-during-a-correction-explained”,”count”:null,”short”:”fb”,”fa”:”facebook”},”twitter”:{“url”:”https://twitter.com/intent/tweet?text=Strategies+for+trading+cryptocurrency+during+a+correction%2C+explained https%3A%2F%2Fcointelegraph.com%2Fexplained%2Fstrategies-for-trading-cryptocurrency-during-a-correction-explained via @cointelegraph”,”count”:null,”short”:”tw”,”fa”:”twitter”},”telegram”:{“url”:”https://telegram.me/share/url?url=https%3A%2F%2Fcointelegraph.com%2Fexplained%2Fstrategies-for-trading-cryptocurrency-during-a-correction-explained &text=Strategies+for+trading+cryptocurrency+during+a+correction%2C+explained”,”count”:null,”short”:”tg”,”fa”:”paper-plane”},”whatsapp”:{“url”:”https://api.whatsapp.com/send?text=Strategies+for+trading+cryptocurrency+during+a+correction%2C+explained&href=https%3A%2F%2Fcointelegraph.com%2Fexplained%2Fstrategies-for-trading-cryptocurrency-during-a-correction-explained”,”count”:null,”short”:”wu”,”fa”:”whatsapp”},”gplus”:{“url”:”https://plus.google.com/share?url=https%3A%2F%2Fcointelegraph.com%2Fexplained%2Fstrategies-for-trading-cryptocurrency-during-a-correction-explained”,”count”:null,”short”:”gplus”,”fa”:”google-plus”},”reddit”:{“url”:”https://www.reddit.com/submit?url=https%3A%2F%2Fcointelegraph.com%2Fexplained%2Fstrategies-for-trading-cryptocurrency-during-a-correction-explained&title=Strategies+for+trading+cryptocurrency+during+a+correction%2C+explained”,”count”:null,”short”:”reddit”,”fa”:”reddit-alien”},”linkedin”:{“url”:”https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fcointelegraph.com%2Fexplained%2Fstrategies-for-trading-cryptocurrency-during-a-correction-explained&title=Strategies+for+trading+cryptocurrency+during+a+correction%2C+explained”,”count”:null,”short”:”li”,”fa”:”linkedin”}},”hide_disclaimer”:false,”elink”:”https://tradesanta.com/en?utm_source=cointelegraph&utm_medium=explained&utm_campaign=correction”,”etitle”:”Partnership material”,”elogo_x2″:false,”elogo_x1″:false,”elogo_svg”:”https://s3.cointelegraph.com/storage/uploads/view/ee468d253c76f1c9493188d0d89c917c.svg”,”content”:[{“id”:3147,”post_id”:79976,”title”:”What is a market correction, and how should traders respond to it?”,”content”:”

A correction refers to a rapid price decrease, which traders can use to their advantage with the assistance of cryptocurrency trading bots.

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Although the definition for a correction differs, it is most often used to describe a rapid decrease in an asset’s price, usually at least 10% and up to 20%. If an asset falls more than that, the price dip is classified as a market crash.

nn

Corrections are often the result of a minor event, such as low trading volumes or other technical factors. They, therefore, occur fairly regularly, lasting a few days, weeks and, in some cases, months. The term correction is then used since the price will often return to its expected value. However, the alternative may also be true. A correction may lead to a larger decline, a bear market.

nn

As most know, the cryptocurrency market is defined by its volatility, making it normal for prices to move up and down fairly regularly.

nn

Looking at the 2021 year alone, the cryptocurrency market was subject to four market corrections and another market event.

nn

For this reason, analysts will also recommend market corrections as a great opportunity for investors to buy assets “on sale.”

nn

The main concern here is that it can be hard to determine when a correction might occur. For this reason, crypto trading bots can play a crucial role in helping traders determine when to buy and sell using signals and indicators and also just not to miss that moment while being away from the screen.

nnnn”,”created_at”:”2022-01-24 18:56:21″,”updated_at”:”2022-01-24 20:27:30″,”sort”:1,”translations”:{“id”:3140,”explained_post_id”:3147,”title_en”:”What is a market correction, and how should traders respond to it?”,”content_en”:”

A correction refers to a rapid price decrease, which traders can use to their advantage with the assistance of cryptocurrency trading bots.

nn

Although the definition for a correction differs, it is most often used to describe a rapid decrease in an asset’s price, usually at least 10% and up to 20%. If an asset falls more than that, the price dip is classified as a market crash.

nn

Corrections are often the result of a minor event, such as low trading volumes or other technical factors. They, therefore, occur fairly regularly, lasting a few days, weeks and, in some cases, months. The term correction is then used since the price will often return to its expected value. However, the alternative may also be true. A correction may lead to a larger decline, a bear market.

nn

As most know, the cryptocurrency market is defined by its volatility, making it normal for prices to move up and down fairly regularly.

nn

Looking at the 2021 year alone, the cryptocurrency market was subject to four market corrections and another market event.

nn

For this reason, analysts will also recommend market corrections as a great opportunity for investors to buy assets “on sale.”

nn

The main concern here is that it can be hard to determine when a correction might occur. For this reason, crypto trading bots can play a crucial role in helping traders determine when to buy and sell using signals and indicators and also just not to miss that moment while being away from the screen.

nnnn”,”title_es”:”¿Qué es una corrección del mercado y cómo deben responder a ella los traders?”,”content_es”:”

Una corrección se refiere a un rápido descenso del precio, que los operadores pueden utilizar en su beneficio con la ayuda de los bots de comercio de criptomonedas.

nn

Aunque la definición de una corrección difiere, se utiliza más a menudo para describir una rápida disminución en el precio de un activo, por lo general al menos el 10% y hasta el 20%. Si un activo cae más que eso, la bajada de precios se clasifica como una caída del mercado.

nn

Las correcciones suelen ser el resultado de un acontecimiento menor, como un bajo volumen de operaciones u otros factores técnicos. Por lo tanto, se producen con bastante regularidad y duran unos días, semanas y, en algunos casos, meses. Entonces se utiliza el término corrección, ya que el precio suele volver a su valor esperado. Sin embargo, la alternativa también puede ser cierta. Una corrección puede dar lugar a un descenso mayor, un mercado bajista.

nn

Como la mayoría sabe, el mercado de las criptomonedas se define por su volatilidad, por lo que es normal que los precios suban y bajen con bastante regularidad.

nn

Sólo en el año 2021, el mercado de criptodivisas sufrió cuatro correcciones de mercado y otro evento de mercado.

nn

Por esta razón, los analistas también recomendarán las correcciones del mercado como una gran oportunidad para que los inversores compren activos “en oferta”.

nn

La principal preocupación aquí es que puede ser difícil determinar cuándo puede ocurrir una corrección. Por esta razón, los bots de trading de criptomonedas pueden desempeñar un papel crucial para ayudar a los operadores a determinar cuándo comprar y vender utilizando señales e indicadores y también para no perderse ese momento estando lejos de la pantalla.

nnn”,”title_cn”:””,”content_cn”:”nn”,”title_de”:””,”content_de”:”nn”,”title_it”:””,”content_it”:”nn”,”title_ar”:””,”content_ar”:”nn”,”title_br”:””,”content_br”:”nn”,”title_jp”:””,”content_jp”:”nn”,”created_at”:”2022-01-24 18:56:21″,”updated_at”:”2022-01-24 20:27:30″,”title_kr”:””,”content_kr”:”nn”,”title_tr”:””,”content_tr”:”nn”}},{“id”:3148,”post_id”:79976,”title”:”What are some of the considerations investors must make when using automated crypto trading during a correction?”,”content”:”

Cryptocurrency trading bots take the emotions out of trading but are not completely hands-off either and, therefore, must be accompanied with a carefully thought out strategy.

nn

In a correction, it is not uncommon for emotions to run high. Although these events are expected, investors may be quick to act on their fear and execute a trade that is not in their best interests. For these reasons, a cryptocurrency trading bot becomes beneficial since trades are executed based on logic, eliminating emotions from the equation.

nn

However, to successfully implement a crypto trading bot, investors must first seek out the most profitable one for them. Although making the selection is in the investor’s hands, that’s not where the decision-making stops.

nn

Trading bots are built to follow a set of rules and are therefore not always perfect in the face of an unpredictable market. As a result, a carefully-crafted strategy is necessary for an automated trading bot. Programming errors can also impact crypto bots. Therefore, investors must exercise extra caution when determining the bot’s actions or setting the rules for their own from scratch.

nn

Investors must bear in mind that being successful with an automated bot requires clear goals, patience and trust in the process and is not a solution for overnight success.

nnnn”,”created_at”:”2022-01-24 18:57:11″,”updated_at”:”2022-01-24 20:27:30″,”sort”:2,”translations”:{“id”:3141,”explained_post_id”:3148,”title_en”:”What are some of the considerations investors must make when using automated crypto trading during a correction?”,”content_en”:”

Cryptocurrency trading bots take the emotions out of trading but are not completely hands-off either and, therefore, must be accompanied with a carefully thought out strategy.

nn

In a correction, it is not uncommon for emotions to run high. Although these events are expected, investors may be quick to act on their fear and execute a trade that is not in their best interests. For these reasons, a cryptocurrency trading bot becomes beneficial since trades are executed based on logic, eliminating emotions from the equation.

nn

However, to successfully implement a crypto trading bot, investors must first seek out the most profitable one for them. Although making the selection is in the investor’s hands, that’s not where the decision-making stops.

nn

Trading bots are built to follow a set of rules and are therefore not always perfect in the face of an unpredictable market. As a result, a carefully-crafted strategy is necessary for an automated trading bot. Programming errors can also impact crypto bots. Therefore, investors must exercise extra caution when determining the bot’s actions or setting the rules for their own from scratch.

nn

Investors must bear in mind that being successful with an automated bot requires clear goals, patience and trust in the process and is not a solution for overnight success.

nnnn”,”title_es”:”¿Cuáles son algunas de las consideraciones que los inversores deben hacer cuando utilizan el trading de criptomonedas automatizado durante una corrección?”,”content_es”:”

Los bots de trading de criptomonedas eliminan las emociones del trading, pero tampoco son completamente independientes y, por lo tanto, deben ir acompañados de una estrategia cuidadosamente pensada.

nn

En una corrección, no es raro que las emociones se disparen. Aunque estos sucesos son esperados, los inversores pueden apresurarse a actuar en base a su miedo y ejecutar una operación que no es de su interés. Por estas razones, un bot de comercio de criptomonedas se vuelve beneficioso ya que las operaciones se ejecutan en base a la lógica, eliminando las emociones de la ecuación.

nn

Sin embargo, para implementar con éxito un bot de trading de criptomonedas, los inversores deben primero buscar el más rentable para ellos. Aunque hacer la selección está en manos del inversor, no es ahí donde se detiene la toma de decisiones.

nn

Los bots de trading están construidos para seguir un conjunto de reglas y, por lo tanto, no siempre son perfectos ante un mercado impredecible. Por ello, es necesario que un bot de trading automatizado cuente con una estrategia cuidadosamente elaborada. Los errores de programación también pueden afectar a los criptobots. Por lo tanto, los inversores deben extremar la precaución a la hora de determinar las acciones del bot o de establecer las reglas para el suyo propio desde cero.

nn

Los inversores deben tener en cuenta que tener éxito con un bot automatizado requiere objetivos claros, paciencia y confianza en el proceso y no es una solución para tener éxito de la noche a la mañana.

nnn”,”title_cn”:””,”content_cn”:”nn”,”title_de”:””,”content_de”:”nn”,”title_it”:””,”content_it”:”nn”,”title_ar”:””,”content_ar”:”nn”,”title_br”:””,”content_br”:”nn”,”title_jp”:””,”content_jp”:”nn”,”created_at”:”2022-01-24 18:57:11″,”updated_at”:”2022-01-24 20:27:30″,”title_kr”:””,”content_kr”:”nn”,”title_tr”:””,”content_tr”:”nn”}},{“id”:3149,”post_id”:79976,”title”:”What approach and strategies should investors consider leveraging as a part of an automated solution?”,”content”:”

Automated trading strategies, including the reversion strategy with a dollar-cost averaging (DCA) bot, can help users take advantage of a market correction.

nn

Since the price is expected to return to normal, one common tactic is the use of a reversion strategy, based on the idea that rates will return to a mean value after a certain point in time. In practice, this strategy identifies the upper and lower price limit; then, the algorithm runs to execute orders when the price surpasses the normal range.

nn

The strategy is particularly beneficial as prices hit new highs or lows so traders can gain profits from trends in the market. When employing a cryptocurrency trading bot with this strategy, investors must be careful that prices may not reverse as quickly as expected.

nn

As a part of a long-term strategy, a dollar-cost averaging method is often recommended. With this strategy, a bot may place a single buy order and continue to purchase additional orders if the price decreases. That way, holders can take advantage of lower asset prices without worrying about timing the market “perfectly.” Again, assuming that the market will correct itself over a period, the asset will be sold based on a parameter preset by the investor. Taken together, these are only two of the strategies that investors may choose to leverage in the event of a correction.

nnnn”,”created_at”:”2022-01-24 18:57:52″,”updated_at”:”2022-01-24 20:27:30″,”sort”:3,”translations”:{“id”:3142,”explained_post_id”:3149,”title_en”:”What approach and strategies should investors consider leveraging as a part of an automated solution?”,”content_en”:”

Automated trading strategies, including the reversion strategy with a dollar-cost averaging (DCA) bot, can help users take advantage of a market correction.

nn

Since the price is expected to return to normal, one common tactic is the use of a reversion strategy, based on the idea that rates will return to a mean value after a certain point in time. In practice, this strategy identifies the upper and lower price limit; then, the algorithm runs to execute orders when the price surpasses the normal range.

nn

The strategy is particularly beneficial as prices hit new highs or lows so traders can gain profits from trends in the market. When employing a cryptocurrency trading bot with this strategy, investors must be careful that prices may not reverse as quickly as expected.

nn

As a part of a long-term strategy, a dollar-cost averaging method is often recommended. With this strategy, a bot may place a single buy order and continue to purchase additional orders if the price decreases. That way, holders can take advantage of lower asset prices without worrying about timing the market “perfectly.” Again, assuming that the market will correct itself over a period, the asset will be sold based on a parameter preset by the investor. Taken together, these are only two of the strategies that investors may choose to leverage in the event of a correction.

nnnn”,”title_es”:”¿Qué enfoque y estrategias deberían considerar los inversores como parte de una solución automatizada?”,”content_es”:”

Las estrategias de trading automatizadas, incluida la estrategia de reversión con un bot de promediación de costes en dólares (DCA), pueden ayudar a los usuarios a aprovechar una corrección del mercado.

nn

Dado que se espera que el precio vuelva a la normalidad, una táctica común es el uso de una estrategia de reversión, basada en la idea de que los tipos volverán a un valor medio después de un determinado momento. En la práctica, esta estrategia identifica el límite superior e inferior del precio; entonces, el algoritmo se ejecuta para ejecutar órdenes cuando el precio supera el rango normal.

nn

La estrategia es especialmente beneficiosa cuando los precios alcanzan nuevos máximos o mínimos, por lo que los operadores pueden obtener beneficios de las tendencias del mercado. Al emplear un bot de comercio de criptomonedas con esta estrategia, los inversores deben tener cuidado de que los precios no se reviertan tan rápidamente como se espera.

nn

Como parte de una estrategia a largo plazo, a menudo se recomienda un método de promedio de costo en dólares. Con esta estrategia, un bot puede colocar una sola orden de compra y seguir comprando órdenes adicionales si el precio baja. De este modo, los titulares pueden aprovechar los precios más bajos de los activos sin preocuparse de sincronizar el mercado “perfectamente”. De nuevo, asumiendo que el mercado se corregirá a sí mismo durante un periodo, el activo se venderá en función de un parámetro preestablecido por el inversor. En conjunto, éstas son sólo dos de las estrategias que los inversores pueden elegir para apalancarse en caso de corrección.

nnn”,”title_cn”:””,”content_cn”:”nn”,”title_de”:””,”content_de”:”nn”,”title_it”:””,”content_it”:”nn”,”title_ar”:””,”content_ar”:”nn”,”title_br”:””,”content_br”:”nn”,”title_jp”:””,”content_jp”:”nn”,”created_at”:”2022-01-24 18:57:52″,”updated_at”:”2022-01-24 20:27:30″,”title_kr”:””,”content_kr”:”nn”,”title_tr”:””,”content_tr”:”nn”}},{“id”:3150,”post_id”:79976,”title”:”How to apply automated trading in times of correction?”,”content”:”

Investors looking to leverage automated trading must first select a platform, determine their strategy and begin implementation.

nn

With the rising of automated trading platforms, users now have a greater selection than ever before, each of which is designed to simplify the process for new and experienced investors alike.

nn

TradeSanta is a cryptocurrency trading bot used across the cryptocurrency industry, allowing users to take advantage of automated trading strategies. The trades are executed per market movements based on pre-programmed instructions with access to DCA and grid strategies, in addition to more advanced features, including stop loss and trailing stop.

nn

With this combination, investors can manage risks in the event of both market reversals and corrections. More recently, TradeSanta released a Trailing Take Profit feature so investors can also take advantage of uptrend periods following a dip.

nn

That said, a trading bot is nothing more than a piece of software that executes trades based on how an investor sets them up. Therefore, with a proven strategy and a careful eye on the market, substantial profits with automated trading can be possible in any market condition, with platforms like TradeSanta making it simple for users to set up.

nn

Learn more about TradeSanta

nn

n

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.

n

nnnn”,”created_at”:”2022-01-24 19:00:13″,”updated_at”:”2022-01-24 20:27:30″,”sort”:4,”translations”:{“id”:3143,”explained_post_id”:3150,”title_en”:”How to apply automated trading in times of correction?”,”content_en”:”

Investors looking to leverage automated trading must first select a platform, determine their strategy and begin implementation.

nn

With the rising of automated trading platforms, users now have a greater selection than ever before, each of which is designed to simplify the process for new and experienced investors alike.

nn

TradeSanta is a cryptocurrency trading bot used across the cryptocurrency industry, allowing users to take advantage of automated trading strategies. The trades are executed per market movements based on pre-programmed instructions with access to DCA and grid strategies, in addition to more advanced features, including stop loss and trailing stop.

nn

With this combination, investors can manage risks in the event of both market reversals and corrections. More recently, TradeSanta released a Trailing Take Profit feature so investors can also take advantage of uptrend periods following a dip.

nn

That said, a trading bot is nothing more than a piece of software that executes trades based on how an investor sets them up. Therefore, with a proven strategy and a careful eye on the market, substantial profits with automated trading can be possible in any market condition, with platforms like TradeSanta making it simple for users to set up.

nn

Learn more about TradeSanta

nn

n

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.

n

nnnn”,”title_es”:”¿Cómo aplicar el trading automatizado en tiempos de corrección?”,”content_es”:”

Los inversores que deseen aprovechar el trading automatizado deben seleccionar primero una plataforma, determinar su estrategia y empezar a aplicarla.

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Con el aumento de las plataformas de trading automatizado, los usuarios tienen ahora una mayor selección que nunca, cada una de las cuales está diseñada para simplificar el proceso tanto para los inversores nuevos como para los experimentados.

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TradeSanta es un bot de trading de criptomonedas utilizado en toda la industria de las criptomonedas, que permite a los usuarios aprovechar las estrategias de trading automatizadas. Las operaciones se ejecutan según los movimientos del mercado basados en instrucciones preprogramadas con acceso a estrategias DCA y grid, además de características más avanzadas, incluyendo stop loss y trailing stop.

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Con esta combinación, los inversores pueden gestionar los riesgos tanto en caso de retrocesos como de correcciones del mercado. Más recientemente, TradeSanta ha lanzado una función de Trailing Take Profit para que los inversores puedan aprovechar también los periodos de tendencia alcista tras una caída.

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Dicho esto, un bot de trading no es más que una pieza de software que ejecuta las operaciones en base a cómo las configura el inversor. Por lo tanto, con una estrategia probada y un ojo cuidadoso en el mercado, los beneficios sustanciales con el comercio automatizado puede ser posible en cualquier condición de mercado, con plataformas como TradeSanta haciendo que sea sencillo para los usuarios.

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Más información sobre TradeSanta

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Descargo de responsabilidad. Cointelegraph no respalda ningún contenido de producto en esta página. Si bien nuestro objetivo es proporcionarle toda la información importante que pudimos obtener, los lectores deben hacer su propia investigación antes de tomar cualquier acción relacionada con la empresa y asumir la plena responsabilidad de sus decisiones, así como este artículo no puede ser considerado como un consejo de inversión.

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(SOS), LooksRare (LOOKS) and WTF token: 3 airdrops, with 1 scam”,”lead”:”NFT investors are demanding that marketplaces recognize and give value to their users, prompting competitors like LOOKS, SOS and WTF to launch ambitious vampire…”,”leadfull”:””,”category_id”:89,”category_url”:”https://cointelegraph.com/category/market-analysis”,”category_title”:”Market Analysis”,”author_url”:”https://cointelegraph.com/authors/alyssa-exposito”,”author_hash”:”aHR0cHM6Ly9jb2ludGVsZWdyYXBoLmNvbS9hdXRob3JzL2FseXNzYS1leHBvc2l0bw==”,”author_title”:”Alyssa Exposito”,”author_img”:”https://cointelegraph.com/assets/img/icons/author_female.png”,”date”:”JAN 21, 2022″,”flash_date”:”JAN 21, 2022″,”sponsored”:false,”press_release”:false,”sponsored_label”:”Sponsored”,”explained”:false,”badge”:{“title”:”Market Analysis”,”label”:”info”},”published”:{“date”:”2022-01-21 00:00:00.000000″,”timezone_type”:3,”timezone”:”Europe/London”},”stat_uniqs”:8947,”rss_date”:”Fri, 21 Jan 2022 00:00:00 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A correction refers to a rapid price decrease, which traders can use to their advantage with the assistance of cryptocurrency trading bots.

Although the definition for a correction differs, it is most often used to describe a rapid decrease in an asset’s price, usually at least 10% and up to 20%. If an asset falls more than that, the price dip is classified as a market crash.

Corrections are often the result of a minor event, such as low trading volumes or other technical factors. They, therefore, occur fairly regularly, lasting a few days, weeks and, in some cases, months. The term correction is then used since the price will often return to its expected value. However, the alternative may also be true. A correction may lead to a larger decline, a bear market.

As most know, the cryptocurrency market is defined by its volatility, making it normal for prices to move up and down fairly regularly.

Looking at the 2021 year alone, the cryptocurrency market was subject to four market corrections and another market event.

For this reason, analysts will also recommend market corrections as a great opportunity for investors to buy assets “on sale.”

The main concern here is that it can be hard to determine when a correction might occur. For this reason, crypto trading bots can play a crucial role in helping traders determine when to buy and sell using signals and indicators and also just not to miss that moment while being away from the screen.

Cryptocurrency trading bots take the emotions out of trading but are not completely hands-off either and, therefore, must be accompanied with a carefully thought out strategy.

In a correction, it is not uncommon for emotions to run high. Although these events are expected, investors may be quick to act on their fear and execute a trade that is not in their best interests. For these reasons, a cryptocurrency trading bot becomes beneficial since trades are executed based on logic, eliminating emotions from the equation.

However, to successfully implement a crypto trading bot, investors must first seek out the most profitable one for them. Although making the selection is in the investor’s hands, that’s not where the decision-making stops.

Trading bots are built to follow a set of rules and are therefore not always perfect in the face of an unpredictable market. As a result, a carefully-crafted strategy is necessary for an automated trading bot. Programming errors can also impact crypto bots. Therefore, investors must exercise extra caution when determining the bot’s actions or setting the rules for their own from scratch.

Investors must bear in mind that being successful with an automated bot requires clear goals, patience and trust in the process and is not a solution for overnight success.

Automated trading strategies, including the reversion strategy with a dollar-cost averaging (DCA) bot, can help users take advantage of a market correction.

Since the price is expected to return to normal, one common tactic is the use of a reversion strategy, based on the idea that rates will return to a mean value after a certain point in time. In practice, this strategy identifies the upper and lower price limit; then, the algorithm runs to execute orders when the price surpasses the normal range.

The strategy is particularly beneficial as prices hit new highs or lows so traders can gain profits from trends in the market. When employing a cryptocurrency trading bot with this strategy, investors must be careful that prices may not reverse as quickly as expected.

As a part of a long-term strategy, a dollar-cost averaging method is often recommended. With this strategy, a bot may place a single buy order and continue to purchase additional orders if the price decreases. That way, holders can take advantage of lower asset prices without worrying about timing the market “perfectly.” Again, assuming that the market will correct itself over a period, the asset will be sold based on a parameter preset by the investor. Taken together, these are only two of the strategies that investors may choose to leverage in the event of a correction.

Investors looking to leverage automated trading must first select a platform, determine their strategy and begin implementation.

With the rising of automated trading platforms, users now have a greater selection than ever before, each of which is designed to simplify the process for new and experienced investors alike.

TradeSanta is a cryptocurrency trading bot used across the cryptocurrency industry, allowing users to take advantage of automated trading strategies. The trades are executed per market movements based on pre-programmed instructions with access to DCA and grid strategies, in addition to more advanced features, including stop loss and trailing stop.

With this combination, investors can manage risks in the event of both market reversals and corrections. More recently, TradeSanta released a Trailing Take Profit feature so investors can also take advantage of uptrend periods following a dip.

That said, a trading bot is nothing more than a piece of software that executes trades based on how an investor sets them up. Therefore, with a proven strategy and a careful eye on the market, substantial profits with automated trading can be possible in any market condition, with platforms like TradeSanta making it simple for users to set up.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.