Here are some questions that you must ask when choosing a trading bot:
Question #1: How credible is the team?
If you are going to trust a bot with your portfolio, then the least you can do is to make sure that the team behind it is as credible and qualified as possible. This can be done with a simple checklist:
What is the work experience level of the team members?
What are their qualifications?
Have they ever maintained and grown a respectable portfolio?
How well is the functionality of the bot documented?
Where are they getting their funds from?
Make sure that the team is as transparent as possible about their development. This way, they can be held accountable for their actions.
Question #2: Is the bot actually using the strategy that I want to implement?
Knowing which bot best aligns with your chosen strategy is absolutely critical. This is why you should look over the bot’s website and read the different reviews and guides that people have written about it. On that note, you also need to know how hands-on you need to be with the bot’s configuration. If you aren’t that technologically inclined, then it won’t make any sense for you to subscribe to a bot that requires its users to be more hands-on.
Question #3: How strong is the support provided by the team?
The next thing you need to look into is the level of support provided by the team. Can you easily approach the team with questions regarding general support or bugs? Once again, there is a checklist that you can tick off beforehand:
Does the company have an active community? This community will usually exist on a platform like Telegram, Discord, or Reddit.
Within these communities, is the team actively communicating with the community?
Are the developers providing timely updates and solutions to any possible bugs?
Question #4: How expensive is it?
As we have mentioned in the example above, the bot’s price can range from $0 to as much as $1000/month. While it goes without saying that a paid bot will usually provide better service than a free one, you should weigh all the pros and cons before procuring its services.
Question #5: Can it adjust according to different market conditions?
Every bot will execute a strategy in its own unique way. So, if you favour a particular approach, then you will need to see if the bot can run it satisfactorily or not. You don’t want to lose out on potential investment due to poor strategy execution.
Question #6: Finally. Is it easy to use?
Even though they can be really helpful, the reality is that most trading bots can be incredibly complicated. For a beginner, diving deep into the backend can be a nightmare. This is why make sure that you are choosing a bot that aligns with your level of expertise. If you are just starting out, it may be wise to select a bot which may not have a lot of fancy features, but is easy-to-use.
