Undeniably, Ethereum has been the most popular cryptocurrency in 2022. The merge with the Beacon network changed the consensus algorithm to Proof-of-Stake and removed the necessity of mining. This event laid a completely new path for the whole crypto industry to go forward. Unfortunately, investors were not so happy with the implementation of the new consensus mechanism and the asset lost some value. However, even during a bearish market an Ethereum trading bot from WunderTrading performed quite well.
Ultimately, the performance of any trading robot depends on the person who designed it. With enough powerful automation tools at your disposal, you can easily create the best Ethereum trading bot and start counting profits. You will need a good strategy, a good source of data, and a good automation platform. The latter is already in place. However, what about the first two aspects?
Creating a reliable Ethereum strategy
To build one, you will need two things: a provider of analytical data and a valid trading system based on the received information. Both can be found on the most popular analytical platform for crypto assets — TradingView. This platform has a very informative price chart that can be expanded with technical indicators and graphical elements like support and resistance lines. These tools are essential in any TA approach.
The process of creating an Ethereum bot trading sequence is quite simple. You need to follow these steps:
- Go to WunderTrading’s main page and create a new account.
- Use new credentials to go to the dashboard and connect your CEX account.
- Go to the page called “bots” and create a new bot.
- Use the TradingView platform by adding code in the PineEditor.
- Launch the new bot with settings based on the strategy.
The PineEditor is a very simple scripting language created by the founders of the TradingView platform. It has a very straightforward syntax and provides detailed commentaries for each line. To top it all off, the WunderTrading platform has in-depth tutorials. It is not that hard to master the PineEditor and start creating sophisticated analytical systems that generate alerts for your Ethereum trading bots.
Preset templates for cryptocurrencies
One of the reasons why WunderTrading is often recommended to beginners is because the arsenal of preset templates is quite rich and offers a diverse selection of bots that have been proven effective in the real market.
Here are some of the bots that you can use right from the get-go:
- DCA buying and selling bots are great for people who want to make profits consistently and as frequently as possible. This bot places buy orders during downtrends to reduce the average cost of investment. Then, it puts a sell order as directed by its user.
- GRID bots are similar to DCA, but for each buy order, a take profit is placed immediately to ensure that each order is profitable. While it is not a strategy that guarantees a 100% rate of success, it is still a very reliable system that you can use with a very low-risk tolerant portfolio.
- Copy trading is a completely different approach to automation. The WunderTrading platform has a special marketplace where professional traders can allow others to follow their lead and copy their orders. This service usually comes at a relatively small price. All you need to do is find a profitable professional and click “follow” next to their row in the table.
Should you use an automated Ethereum trading strategy?
While many people think that they can be successful in the crypto market without employing any automation, the reality is that you cannot perform at your peak ability 24/7. The crypto market is operational around the clock and presents opportunities very often. However, day traders and scalpers often have to sleep or simply rest and miss out on valuable opportunities. When each trade is a small step toward wealth, such mishaps are very undesirable.
Ethereum is also a very volatile asset. It has been quite chaotic after the merge and even during the period leading to this big event. It is unlikely that the asset will be stable. Either it will go down due to various external pressures or soar to new heights during the next Bull run. Both options promise high volatility which can be exploited by a solid technical analysis system and an Ethereum trading bot strategy that can utilize it.
We do not guarantee that you will benefit greatly from using a bot, but you will surely miss out on many opportunities if you don’t. WunderTrading also has a free plan for newcomers. This plan allows you to run up to five different bots simultaneously without spending any money. It is a great way to explore this particular instrument and try to implement it in your investment plan.
Contemporary retail traders eagerly use all novel trading tools and often focus on implementing state-of-the-art methodologies to ensure that they are ahead of the market. Without automation, you will be outperformed by other investors who are not trying to outsmart the market — they are trying to be faster and more flexible instead of playing the guessing game. Automation is a sure way to build an Ethereum trading system that works!
