The number of trading bots out there are so many that it can be difficult to choose which one to work with. Pancakeswap bot and Uniswap bot are two of the many trading bots out there. To pick the right bot, it takes a lot of research and due diligence. In this article, I will be looking at some of the major factors that one should consider when they are choosing a trading bot to use.
Consider the team behind the development of the bot
When you are choosing a trading bot, what you are basically doing is choosing the team behind its development. In order to make a good choice, you want to choose a bot that comes from a successful team. You should look at the experience of the team and how they work together to create the bot. Is the team composed of people who have had a lot of success in their careers prior to developing the bot? You want to look at their track record one by one. You also want to look at how the team has managed to monetize their bot to the public. Good bots are the ones that gross in excess of 100 million US Dollars every year or more.
Take a look at the algorithm
Secondly, the next factor you want to consider is the algorithm itself. How complicated is the algorithm in terms of the code behind it? You want to go with a trading bot that is sophisticated enough to be able to offer you an edge in the market. If the algorithm only gives you trade-level data, then it is time to switch to another bot because such algorithms can easily be replicated. Whatever the advantage the algorithm might seem to be giving you are the moment will not last too long because it can be easily replicated. Once the algorithm is replicated, then you can be sure that everybody else will be able to do what you are doing at the moment and that will take ways your edge in the market. That is why I said above that you need an algorithm that offers a high level of sophistication and special features that cannot be replicated that easily.
Consider the alignment of their goals with your own
When you are choosing bot, you want to consider how much the provider of the algorithm is vested in your own success. There are some providers who will be quick to raise the fees they charge you the minute they realize that you are making a profit from your trading activities. Such providers are opportunistic and may not be the best option for you. Thus, you might need to continue shopping for another trading bot.
The provider should also be interested in what happens to you once they provide you with the trading bot. For instance, they should offer you great customer care service so that you can check in with them whenever you have an issue that needs to be solved.