Main Idea of an Automatic Centobot Cryptocurrency Trading
In today's market, risk diversification is a topical issue. Any trading strategy has periods of losses, and the only protection in such periods is to work in several directions so that losses on one of them are compensated for by the other, and profit would at that time give a third. This technique is especially important for the cryptocurrency market. Cryptocurrency rates are subject to sharp fluctuations with high volatility, which is why many trading strategies are experiencing large temporary shifts. Risk mitigation measures should be taken to avoid the adverse effects of settlements on the current deposit. The idea of diversification is used by the cryptocurrency trading platform Centobot, the review of which is brought to your attention. I also want to recommend an alternative to this program, this is the Autocrypto-bot robot.
Idea and advantage of Centobot robot
The Centobot system is designed to work in the binary options market. In her dream, there is the ability to create for the user many different trading robots, experts working on different tools and using different principles and indicators. This method allows to obtain a number of advantages:
Diversification of risks. A loss-making strategy may be offset by another profit-making strategy. Total profit is provided by the third strategy
Increase in revenue. Fixed-risk robots can be launched, which increases the trader's potential revenue at the former maximum loss.
Damage reduction. Running multiple robots can reduce the risk for each of them as many times as possible. As a result, this reduces the potential loss at the former maximum income level.
Consideration of trader's preferences. Strategies may use different indicators, depending on the user's preference. A trader who trusts more on an indicator has the ability to increase the risk of working on the signals of this indicator and reduce the risk of working on the signals of the indicator is not reliable enough, according to the trader (however, worthy to work with) .
Timely stop of bidding. There is an opportunity to track robots whose strategy is no longer working, and remove them from the trade in a timely manner, leaving only those whose strategies are now profitable.
Comparison of different strategies. There is an opportunity to compare the same strategies on different trading instruments, which opens the possibility of selection of tools by different criteria (by similarity of trade, by "trend", by "best indicators"), with further consideration of these features of the instruments.
Performance comparison of indicators. There is an opportunity to compare the performance of individual indicators on the same trading instrument with the subsequent selection of promising ones.