A trading bot is software that automatically prepares or executes trading decisions based on predefined rules, algorithms, or strategies. It can operate as an Expert Advisor on platforms like MetaTrader or as a standalone application. Trading bots monitor markets in real time, analyze price data, detect signals, and execute trades without human intervention. Their use ranges from simple rule-based systems to complex quantitative models. The main advantages of trading bots are emotion-free execution, speed, and consistency. However, they require ongoing monitoring, regular adjustments to changing market conditions, and a solid understanding of the underlying strategy. Technical failures, incorrect settings, or shifts in market behavior can lead to losses.
