Kosta Ouzas explains how algorithmic traders profit when fear causes panic selling. During consolidation, patient bots execute safety orders to lower their average entry price, then take profit on the rebound. He entered around 104 and exited at 90,000 using this method.
around 104
90,000
Let's have a look at this really boring period when the market was going sideways. So the market started consolidating. And as you can see, very, very patient discretionary traders tend to panic in these scenarios and tend to make too many trades. The algorithm waits for something to happen. As you can see here. Bang, bang, bang. Three executed safety orders, bringing down that weighted average price massively. And we're able to take profit here at a price of 90,000. So just a reminder, we entered at a price of around 104 and we exit at a take profit of 90,000.
