Algorithmic Trading Bots

Emily Garcia
2 min readApr 11, 2021

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What Are Algorithmic Trading Bots?

Algorithmic Trading Bots are software programs which are using Machine Learning Models to place orders on a market.
All our Trading Bots have their individual and different models based on proprietary algorithms that we are developing.
This defines their own behaviour in different market conditions.

Bot’s Performance Indicators

Main performance indicators of each bot are:

  • Annualized Return Percent — return of a bot in particular period normalised to a year.
  • Average Run Time — period of time in hours from placing the first order till closing all positions. This period is called Full Run,
  • Daily Risk Volatility — standard mathematical deviation of daily return.
  • Average Return per Run — average return per Full Run.
  • Total Return — total rerun in particular period.
  • Average Daily Risk — average return per day.

Bear in mind that indicators are changing over time depending on current market conditions.

Bot’s Trading Cycle and States

Each Bot may be in several states during it’s trading cycle:

  • Disabled — bot is not trading
  • Started — bot placed orders on market but has no open positions
  • Active — bot has open positions
  • Finished — bot closed all positions and may be restarted or disabled

Usually you need to start bot to move it from Disabled to Started state and stop bot to transit into Disabled state back.

How to Choose Your Favorite Bot?

This choice is based on your market strategy.
You need to consider three indicators:

  • Annualized Return Percent
  • Average Run Time
  • Daily Risk Volatility

Annualized Return indicates what return you can expect from this bot. Most likely you will be looking for high return bots.
Average Run Time tells you how often bots finishing its full runs. Large Average Run Time may increase uncertainty as market conditions may significantly change during bot’s trading cycle.
Daily Risk Volatility indicates possible profit or loss during trading day. Usually to run bot with high Daily Risk Volatility you will need additional capital on you exchange trading account but it will give you possibility for high return in short period.
We also advise to create Investment Portfolio including several bots and review it on regular basis.

Klick here to join us on Telegram: CryptoTradingAITech

Contact us: https://t.me/EmilyTrading

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Emily Garcia
Emily Garcia

Written by Emily Garcia

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Artificial Intelligence Business Leader and International Speaker

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