Trading bots, explained.
No hype and no magic. Here is what a trading bot does, what it can't do, and how risk controls keep it in check.
Every bot runs the same loop
A trading bot is a program that follows a written rule, around the clock, without getting tired or emotional.
Reads live prices from your exchange or broker, as often as every few seconds.
Applies a rule you can say in one sentence, like "buy when the fast average crosses above the slow one."
Before any order, checks limits and cooldowns. If a check fails, the bot does nothing.
Sends the order through your exchange or broker's API.
Logs what it did and tells you.
Then it goes back to step 1 and repeats.
One simple strategy: the crossover
How it works. The bot tracks two averages of recent prices: a fast one that reacts quickly and a slow one that moves gradually. When the fast line crosses above the slow line, price momentum may be turning up, so the bot may buy. When it crosses back below, it may sell.
Where it struggles. In a choppy, sideways market the two lines cross again and again. Each false signal can cost money in fees and small losses. Every strategy has a weakness like this, which is why risk controls matter.
Risk controls
These limits sit between the bot's decision and the order, so one bad call can't run away.
Closes a trade once it reaches a target gain you set.
Closes a trade if it falls to a loss limit you set, so one position can't keep sinking.
Waits a set time after a trade before trading the same market again.
Stops trading for the day once losses reach your limit.
Four agents, four strategies
Teresa is the core agent. Each sub-agent adds a different way of reading the market.
Rides confirmed trends and adds on strength.
Watches for exhaustion and trades the turn.
Tracks currency pairs across global sessions.
Structures positions around volatility spikes.
Run it from your phone
Teresa is controlled through Telegram, so you can check on her from anywhere.
Start / StopTurn trading on or off./statusSee what the bot is doing right now./balanceCheck the account balance./pairsSee which markets it trades./setpairsChange which markets it trades./helpList every command.What bots can't do
- They can't predict the market. A bot follows rules. It doesn't know what happens next.
- They can lose money, including everything you put in. Past results don't guarantee future ones.
- Conditions change. A rule that works in a trending market can fail in a sideways one.
- They need supervision. Check in on them, and only risk money you can afford to lose.
- Start on paper. Test with simulated money before you trade real funds.