A crypto trading bot is software that sends buy and sell orders to an exchange on your behalf, following rules. It does not guess the future better than people do. Its advantage is that it never gets tired, never panics and never skips a rule.
What the bot really does
Every few seconds the bot reads prices, the order book and its own open positions. Then it decides whether to place, change or cancel orders. All of this happens through the exchange API, the same channel professional desks use.
- Reads market data in real time.
- Applies the strategy rules to decide the next order.
- Checks risk limits before sending anything.
- Records every order, fee and result.
What it cannot do
A bot cannot remove market risk. If the price of an asset falls sharply, a bot holding that asset loses money too. Good bots limit the damage with stop rules and daily loss caps, but no serious platform can promise profit.
Common strategies
Market making places buy orders slightly below the price and sell orders slightly above it, profiting from the small difference many times a day. Grid trading spreads orders across a price range. Trend following buys strength and sells weakness. Each one works better in a certain type of market.
Where AI comes in
At Resolutes, AI is used where it adds real value: reading public news and exchange announcements, measuring volatility and adjusting position size. When the market becomes unpredictable, the engine slows down or pauses instead of insisting.
The key point: who holds the money
The safest model keeps the money in the user's own exchange account. The bot receives a key that allows trading only, with withdrawals disabled. This way, the platform can operate but can never move funds.