Market Summary

Trading bots are computer programs that automatically analyse market conditions and execute trades on behalf of a user.

Most trading bots have two primary drawbacks:

  • They require the user to deposit their funds on a centralised exchange, thereby opening themselves up to third-party risk, especially fraud.
  • They require the user to intimately know the software they’re employing or embrace the risk of total loss.

Our blockchain-based smart contract system solves both issues since it’s fully decentralised and easy to use. Instead of user funds being controlled by a central authority – which happens when someone deposits into a centralised cryptocurrency exchange or a TradFi high street bank – users are entirely in control and have transparency in their trading exposure since all trades are recorded on a public ledger, available for anyone and everyone to inspect.

In decentralised finance (DeFi), trading bots are used by traders to buy and sell cryptocurrencies on decentralised exchanges (DEX’s).

These bots can be configured to execute trades based on various factors, such as the price of a particular cryptocurrency, the volume of trades being made, the overall trend in the market, or other mathematical formulas.

Many companies offer centralised trading bots for cryptocurrency markets, but these encounter the risks mentioned earlier since their code is opaque and they execute trades only on a CEX. 0x, Kyber Network, and Uniswap all offer decentralised trading bots, but none can Short on-chain or engage in more sophisticated trading. Trading bot providers typically charge a fee for access, which can be paid through cryptocurrency like Ether or AVAX. Key trends to consider regarding the market for decentralised trading bots:

  • Firstly: The use of decentralised exchanges has been on the rise in recent years, with more and more people trading cryptocurrencies directly with one another rather than through a centralised entity. Peer-to-peer swapping has likely contributed to the growth of decentralised trading bots as more traders look for ways to automate their trading strategies on these platforms. The growth of DeFi has also shown a clear desire to transition away from the unavoidable high risk of a total loss incurred when depositing funds into a centralised entity.
  • Secondly: Using artificial intelligence (AI) and machine learning (ML) in decentralised trading strategies has become increasingly popular. These technologies allow bots to adapt to changing market conditions and make more informed trades. It’s important to highlight that a proven strategy like ours is still a compelling way of operating a trading bot in a world seeking decentralisation. As we look to add more trading strategies in the future, AI and ML present entirely new, exciting, and different expansion opportunities compared to our battle-tested Triple Confirmation strategy.
  • Thirdly: No other project has successfully released an on-chain trading bot that can open both Long and Short positions. Many projects can lay claim to having an on-chain trading bot. When examined closely, however, these trading bots are not genuinely executing directional, derivatives, or options trading. Instead, they engage in brief arbitrage opportunities, intra-week yield-farming, or “dollar cost average” spot purchases. While these are all valuable ideas, they are not directional trading strategies like ours. Only our TC Trading Bot has been proven to hedge on-chain.

The overall market for cryptocurrencies has been growing in recent years, with more and more people buying and selling digital assets. This trend may also contribute to the market's hunger for decentralised trading bots as more traders look for ways to automate their trading strategies and better dial their risk tolerance. As we enter a new era in traditional investment markets and their associated risk-to-reward thanks to sticky inflation and geopolitical events, directional trading strategies that can turn a profit in either market direction are likely to be more sought after than ever.

Our decentralised trading bot is designed to influence the global crypto community to embrace decentralisation and increasingly improve distributed computing technology. Our bots are highly sought after in the market due to their decentralised nature, which allows for secure and transparent trades.

Overall, the market for automated decentralised trading bots appears to be growing. Triple Confirmation wants to be a big player in the industry's future growth.