In this article, we will discuss what the best ai crypto trading robot for scalping trading with the best track record is.
We have to divide this into several questions like
- What is an ai crypto trading bot?
- What is a scalping crypto trading strategy?
- What is a track record?
- List: Best ai crypto trading bot for scalping trading with the best track record
- Risks with ai crypto trading bot for scalping trading and track record
- Pay tax on crypto ai trading
What is an ai crypto trading robot?
Simply, an ai crypto trading robot is a crypto trading bot leveraging an ai function.
In general, AI systems work by ingesting large amounts of labeled training data, analyzing the data for correlations and patterns, and using these patterns to make predictions about future states.
In trading, an AI platform can identify complex trading patterns on a massive scale across multiple markets in real time.
So, an AI crypto trading bot can find patterns that are too complex for a human being to find. In addition, the AI would be able to take decisions based on those patterns and not only on a set or pre-programmed set of rules. As is the case for ordinary crypto trading bots.
What is scalping trading strategies?
Crypto trading scalping strategy is a trading style that focus on profiting off of small price changes and making a fast profit off reselling.
In crypto day trading, scalping is a term for a crypto trading strategy to prioritize making high volumes off small profits.
Important bullet point on scalping trading
- A crypto scalping traders needs a strict exit strategy. This is because one large loss could eliminate the many small gains the trader worked to obtain.
- It´s very important to have accurate and fast live feed.
- Scalping also requires a fast crypto exchange with high trading volume.
What is trading track record?
A trading track record is historical performance from a trader or a trading portfolio
What is considered a good track record in trading?
First, we must explain that it´s not only important with high ROI, you always have to take risk into account. Risk can be measured as volatility (maximum drawdown). Also, we have to compare with something else than 0% ROI which could be stock index, for example. Stock index is easy to access from most part of the world and have high trading volumes so most traders can follow the index.
Making 25% per year annualized with low correlation to the market for 3 years, with a 10% maximum drawdown, and being profitable 90% of the months (Up 33 months out of the last 36) is an example of a fantastic record.
Best ai crypto trading robot for scalping trading with best track record
In our article about the best crypto trading bots you can compare crypto trading bots in general.
However, here we focus only on crypto trading bots with ai functionality.
Below, you can see the list of crypto trading robots with ai function and ability to create scalping trading functions. Also, it´s hard to evaluate the best track record. We could compare templates.
Risks with ai crypto trading bot and scalping trading
There are some risks with AI crypto trading bot and scalping strategies even if the track record might be good.
What are some of those risks?
- Just because it´s AI doesnt mean it´s profitable
- Just because a crypto trading bot has a solid track record historically it doesn´t mean it will perform good in the future
- Even if you have a trading bot with predefined rules it might not act as you predict. There are always bugs and misunderstandings