In this article, we delve into the mechanics of increasing the chances of your stock trading bots springing into action. Many of us instinctively would create a bot to trade from a fund, being careful not to create overlapping fund allocations. This maybe an optimal approach if the user has a substantial amount of fund. However, for many of us who want our trading capital deployed rapidly by the trading bots, a clinical split of funds may not be feasible.
Let’s assume a user has $2000 USD in trading capital. If he or she would like to trade TSLA, he can either create just one bot to trade TSLA or multiple bots to trade from this same capital pool.
If this user creates four additional bots to trade from this $2000 capital, the chances of his capital getting deployed would be 4 times higher. This would make for a far more efficient use of trading capital.
Advantages of creating multiple bots
1. Increase chances for deploying trading capital
2. Due to a faster deployment of capital, the annual return should be higher as well
Disadvantages
1. Higher chances of insufficient capital when the second or third bot opens a trade
Note: Many successful traders deploy on average 10 to 15 stock trading bots!
Disclaimer
Any information provided in this article is not intended to be a substitute for professional advice from a financial advisor, accountant, or attorney. You should always seek the advice of a professional before making any financial decisions. You should evaluate your investment objectives, risk tolerance, and financial situation before making any investment decisions. Please be aware that investing involves risk, and you should always do your own research before making any investment decisions.