1. Types of automated trading
1. Trading bots
Automatically execute predefined rules, as with grid bots and DCA bots.
- Advantages: Simple setup and round-the-clock operation.
- Drawbacks: Fixed rules may not adapt to changing markets.
2. Copy trading
Replicates another trader's trades.
- Advantage: You can follow an experienced trader.
- Drawback: If that trader loses, you share the loss.
3. AI automated trading
Machine-learning or statistical models analyze data and make trading judgments automatically.
- Advantages: Potential adaptation to changing conditions and no human emotion.
- Drawbacks: Decisions can be opaque, and models can fail.
2. Comparison
📊 The original guide's comparison
Trading bots: Rule-based ★★☆
Copy trading: Human-dependent ★★☆
AI trading: Data-based ★★★
The source presents NOONOO TRADING's AI ensemble of 100 agents as a top-level approach.