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Trading Strategies

What Is a Trading Bot

A trading bot is a program that trades an account from outside it, through a key the account issues that says what the program may and may not do, running for as long as the computer it lives on is switched on. This paper shows you the key and its three permissions, the idea as a vending machine that serves at three in the morning, the 23 hours a bot watches against a person's eight on one real day of gold, the rented server a bot usually lives on, and the virtual server your platform can move it to.

Difficulty
Beginner
Reading time
4 min
Pages
8
Reviewed by
Saman Rahbar

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The key

A trading bot is a program that trades an account from outside it, through a key the account issues. The key says what the program may do: read the account and the prices, place and close orders, and, as a separate permission that is normally left off, withdraw money. The account can revoke the key at any moment. Bot is the general word. MetaTrader's Expert Advisor is one kind, running inside the platform; the bots on crypto exchanges are another, running anywhere with a key, and the key is the whole of their connection.

A vending machine

Picture a vending machine. Nobody is behind the counter; it serves at three in the morning as readily as at noon, it does exactly what it was set up to do, and it serves only what it was stocked with. A trading bot is a vending machine for orders: stocked once with a rule, running unattended for as long as the power is on, and unable to serve anything the rule does not name. When the machine breaks, it breaks at three in the morning too, and nobody is there to notice.

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