Level 3 - Bots
Trading bots and automation
Understand how bots fit into trading education without treating them as magic.
What a bot does
A trading bot follows predefined rules. It can monitor prices, calculate signals and place or simulate orders faster than a person. It does not know the future and it does not turn a weak strategy into a strong one by itself.
Where bots can help
Bots can help with consistency, alerts, repetitive execution and educational simulations. They are best studied after learning market basics, risk management, fees and strategy behavior.
Automation risk
Automation can repeat mistakes quickly. A bot needs limits, monitoring, paper testing and clear permissions if it ever connects to a broker or exchange.
Practical example
A Grid bot may place virtual buy levels below EUR 60,000 and virtual sell levels above it. That can teach range behavior, but it can perform badly if price leaves the range.
Important terms
Lesson quiz
Answer all 3 questions, then submit. You need 3/3 correct to unlock the next lesson.