Immediate Edge operate by connecting to cryptocurrency exchange APIs (Application Programming Interfaces). These APIs allow the bots to access real-time market data, execute trades, and manage users' accounts. Here's a simplified overview of how a typical Bitcoin bot works:
Data Collection: The bot collects and analyzes data from various sources, including price charts, order books, and social media sentiment.
Strategy Implementation: Users configure the bot with specific trading strategies, such as trend-following, arbitrage, or market-making. The bot then executes these strategies based on predefined rules.
Risk Management: Immediate Edge often include risk management features to protect users' investments. This may include setting stop-loss orders, take-profit levels, and position sizing.
Order Execution: When the bot identifies a favorable trading opportunity according to the user's strategy, it automatically executes the buy or sell orders on the connected exchange.
Continuous Monitoring: The bot continuously monitors market conditions and adjusts its strategy as necessary. It can respond quickly to price fluctuations, news events, or other factors that may impact the market.