A bot - short for “robot” - is simply a tool that helps you execute and manage a trading strategy inside your portfolio. Bots help automate certain tasks, decisions, and actions that a trader would otherwise perform manually.
Bots are powerful because they can run entire trading strategies, entry to exit, all while being faster, more efficient, and more accurate than manual traders.
It’s true, bots are amazing, and you’ll love trading with them. Before we get too far ahead, here are some high-level concepts you should know about bots as you get started:
Bots are under your total and complete control.
You tell the bot when to turn on, what to look for, when to open positions, when to exit positions, and much more.
All bots follow strict limits and safeguards.
A bot runs inside your account but does not have to use all of your account’s capital. You are in charge of setting allocation and position limits when you create a bot.
Automations tell the bot what to do and when.
Automations are the bot's instruction manual and tell the bot what to do and when. Automations can tell the bot what to scan for, such as new position opportunities or when to close existing positions. Automations can be as simple or complex as you like.
You can run one bot or many bots simultaneously.
You can run one bot or multiple bots, each trading different strategies, different ticker symbols, and different allocations.
Bots are scalable, flexible, and customizable.
Bot automations move through a framework of decision criteria in a logical progression. Automations can run continuously, on a defined schedule, or at the push of a button. Automations can be saved, cloned, and reused in other bots.
You’re already using bots, just not for trading yet.
You use bots when you book airline tickets, search for the fastest route when driving, find music you might enjoy based on other interests, and more. Why not leverage the same power in your trading?
In the articles that follow, we’ll focus on all the amazing features and use cases for bots. As always, we highly encourage you to take your time and move at your own pace.