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Do you dream of a world where you can make money on crypto without putting too much effort? While there is no robot yet that brings you revenues, several attempts to automate your thinking are already present in the market <a name=\'more\'></a> .
One of those attempts is signal trading. Let’s take a look at what that is.
What is signal trading?
What do you think trade
signals could be? Most likely, you can guess how they are calls to some sort of action. But what calls and to what action?
A trade signal is simply a signal to buy or sell an asset (e.g., Bitcoins).
Trade signals are often generated by technical analyses or a group of experienced traders providing their insights. Later, you can receive those
signals either via email, text messages, or Telegram.
In a nutshell, if you’re looking for a quick and short recommendation to react to a certain market situation,
signals will help.
Signal
trading in crypto
Signals on Telegram
Here is an example of a signal for a crypto trade by CryptoArbiTrade:
?Buy – 5285.63 USDT Binance.com
?Sell – 6060.98 USDT Bituary.uk
?775.35 Profit per BTC traded
14.67 % Profit
This signal suggests you perform an arbitrage trade with the $775.35 profit. So if you want to, you can buy Bitcoin (BTC) – the currency is indicated in the pics attached to the signal – at a lower price on top of Binance and then sell it on Bituary.uk, taking the 14.67% profit.
Looks pretty straightforward, right? But you should always remember the risk of not getting filled the second time in this particular case.
We have found this type of signal in one of the free
Telegram groups, but it’s not always the case, as normally you will have to pay for signals.
Still, there are manifold groups on
Telegram that offer you paid
signals or trade
signals free of charge. You can just follow those groups or add them to your crypto bot if the functionality of the software allows you to.
Signal
trading bots As you can guess from the title of this section, sometimes
signals go with specific software that acts on them, and this software is called
trading bots. You don’t have to manually place orders in this case;
bots will do that for you.
Crypto
bots acting on technical analysis
Based on indicators used in technical analysis, say, MACD, Bollinger Bands, etc.,
trading bots analyze the current market situation as well as your personal stop-losses and take-profit targets and make a decision to buy or sell.
TradeSanta uses Bollinger that measures volatility levels and sends the signal to our
trading bot when the current price hits the top or bottom band. For instance, if the current cryptocurrency price hits the top band, this indicator will generate a sell trade signal.
Bots acting on other traders’ experience
There are also companies in the niche that offer specific
bots to act on signal providers of your choice. Those signal providers are basically groups of traders who sell their experience.
The above-mentioned companies accumulate signal providers in one marketplace where users connect the
signals to a proprietary
trading bot.
On the face of it, the result might look the same as with the
bots that act on technical analysis: you don’t have to place orders manually anymore, because the bot acts on
signals instead of you. These particular
signals are generated by people.
Summing up…
Basically, there are two types of
trading signals out there: the ones based on technical analysis and those generated by experienced cryptocurrency traders. Both of these
signals can be automated and added to your
trading bot.
Initially, they are just
signals generated by technical analysis or experienced traders you might want to follow or not.
With the first option, you need to be able to read the charts, but with the second option, you can simply receive alerts via Telegram.
Hopefully, now you’re optimistic about trade
signals being a little step towards the times when
bots will be able to make decisions for us.
It’s always worth reminding you that crypto
trading bots simply automate your thinking, and
trading signals are just recommendations.
