If you are new to cryptocurrency trading, online trading in general, then you might find crypto bots like Bitcoin Code to be very useful. These are designed to help new traders save time by allowing the bots to take the trading decisions and to place orders. If you would like to know more about these bots this Bitcoin Code review might help.
Crypto trading bots are great to use. But even if you happen to use them it would be a good idea to learn the fundamentals and to learn how to perform technical analysis. So you would be able to diversify your options and allow a partial sum for trading with bots and another small portion to trade autonomously. This way, you could simultaneously compare the results of your own trading strategies and the results that the trading bot gives. So you also widen the possibilities of making steady profits.
Backtesting vs. forward testing
When it comes to finding the effectiveness of a strategy you would be recommended to perform backtesting as well as forward testing. Backtesting, as the name indicates, is the process where you use your strategy to identify the potential buying opportunities and selling opportunities from historical data. The time frame was chosen matters as well. There are some strategies that work for a short term and those that work for long term. So the size of the dataset you use for testing also determines the usefulness of the test results. In forwarding testing, you would be using your test strategy to identify potential opportunities from the real-time market data. Given that the data is obtained real time it would be a more relevant market sample. But your decision would have to be tuned on a trial and error basis. So, backtesting and forward testing are both essential in order to identify a strong trading strategy.
There are tools that are available online to help traders build their strategy from scratch. This can be handy for the traders in their early stages of learning how to trade. Even when you have a trading bot you can trust you would still have to back up the bot with a trading strategy of your own. You would then be able to mitigate the risks involved and increase the profits. These are ways to increase the chances of winning and also increase the size of profits made.