Automatable strategies
Not every strategy automates well. The best ones for bots are those based on clear mechanical rules:
- Moving-average crossover: easy to program, clear signals
- RSI extremes: buy oversold, sell overbought
- Range breakout: trade when price leaves a defined range
- Bollinger squeeze: detect the compression and trade the expansion
Backtesting
Before running any strategy live, backtest it on at least 6 months of historical data. Metrics to evaluate: win rate, profit factor, maximum drawdown and Sharpe ratio.
Optimisation
Beware of over-optimisation (overfitting). If your bot performs perfectly on historical data but fails in real time, it is probably overfitted. Use out-of-sample data to validate.
⚠️ Important
A profitable backtest does not guarantee future profit. Market conditions change. Monitor your bot constantly and be ready to switch it off if conditions change.