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  1. Home
  2. /Glossary
  3. /Automated Trading
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trading

Automated Trading

Using software to execute trades based on predefined rules and algorithms without human intervention.

Definition

Using software to execute trades based on predefined rules and algorithms without human intervention. In crypto, bots can run 24/7, reacting to market conditions faster than any human. Popular tools include 3Commas, Pionex, and custom scripts. Automated trading removes emotion but requires solid strategy and risk management.

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Related Terms

Snipe Bot

An automated trading bot that buys tokens the instant they're listed on a DEX, often within the first block.

Risk Management

Strategies for limiting potential losses in your investments.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

Ask Price

The lowest price a seller is willing to accept for an asset.

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