Creating & Managing Trading Bots

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Automated trading has transformed the way traders interact with financial markets. With advanced tools like trading bots, users can execute strategies with precision, eliminate emotional decision-making, and respond to market signals in real time. In platforms such as TrendSpider, the trading bot functionality enables full automation of trade execution through webhooks, delivers live alerts, and integrates seamlessly with external brokers or exchanges. This guide walks you through creating, configuring, verifying, and managing your trading bots effectively—ensuring reliability, consistency, and optimal performance.

Whether you're a beginner exploring algorithmic trading or an experienced trader refining your automation strategy, this comprehensive resource covers every step of the process—from setting up your first bot to mastering behavior settings and troubleshooting common issues.

Understanding Trading Bots

A trading bot is an automated system that executes buy and sell orders based on predefined rules derived from technical analysis, price action, or custom strategies. In TrendSpider, these bots use your backtested strategies to generate entry and exit signals on live charts. Once configured, they operate independently, sending notifications via email, SMS, or webhook integrations.

Key capabilities include:

Before diving into setup, ensure you have a well-tested strategy ready for deployment.

👉 Discover how automated trading can boost your strategy performance

Step-by-Step: Creating a Trading Bot

To begin automating your trades, you must first create a strategy using the Strategy Tester. Only active (non-read-only) strategies can be used to launch a bot. Learn more about building robust strategies in the Strategy Tester documentation.

There are three primary methods to create a trading bot:

Method 1: Using the “Alerts & Bots” Option

  1. Click the ellipsis (⋮) next to the Alerts & Bots button in the top toolbar.
  2. Select Create a Trading Bot from the dropdown menu.
  3. Choose your desired strategy from the list and proceed with configuration.

Method 2: From the Strategy Tester

  1. Open the Strategy Tester from the top-right corner of the interface.
  2. Load or create a strategy and run a backtest.
  3. After completion, click Launch as Trading Bot.
  4. The selected strategy will auto-populate; finalize your bot settings.
Note: Read-only strategies won’t appear here unless cloned first.

Method 3: Via the Trading Bot Widget

  1. Navigate to the right sidebar and select Trading Bots.
  2. Click Add to Sidebar, then press Create a Bot.
  3. Alternatively, use the ⋮ menu and choose Create a Trading Bot.

All paths lead to the same configuration panel where you define your bot’s core parameters.

Configuring Your Trading Bot

Once you’ve initiated bot creation, several key settings must be customized for reliable operation.

Bot Name

Assign a descriptive name to identify your bot easily. A default name is generated if left blank.

Strategy Selection

Choose the backtesting strategy that defines your entry and exit logic. This selection locks a read-only copy of the strategy for historical accuracy.

Time Frame

Select the candle interval (e.g., 5-minute, 1-hour, daily) at which the bot evaluates conditions. The bot checks for signals immediately after each candle closes—typically within 40–60 seconds.

Limitation: Bots support time frames from 5 minutes up to daily. Extended hours data is currently disabled for bots.

Notification Settings

Stay informed when your bot enters or exits positions by enabling one or more notification methods:

Webhook Configuration

When using webhooks:

Webhooks allow direct integration with platforms like Zapier, Discord, IFTTT, and trading execution tools such as SignalStack or TradersPost.

Tip: Enable verbose control notifications initially to monitor behavior before connecting live trading endpoints.

👉 Learn how professional traders automate their entries and exits

Control Notifications

These provide deeper insight into your bot’s internal operations—even when no trade occurs.

You can receive control notifications via SMS, email, or both. Use this feature during testing to validate logic alignment with backtests.

Bot Behavior Settings

Customize how your bot responds under unusual circumstances.

Without Webhooks

With Webhooks Enabled

Additional failure-handling options become available:

Retry Failed Webhooks

Define retry attempts (0–5) with 3-second intervals between calls. A failure is defined as:

When Failed to Enter

When Failed to Exit

Critical failures always trigger high-priority alerts regardless of settings.

After configuration, click CREATE BOT to activate it. The bot will begin generating on-chart signals immediately.

On-Chart Signal Marks

Once active, your bot paints entry and exit signals directly on the chart—provided the ticker, timeframe, chart type, and session match exactly.

To improve clarity:

Current Limitations (Beta):

Verifying Bot Functionality

Consistency between backtests and live bot behavior is critical. TrendSpider ensures alignment by:

If discrepancies occur—such as signal movement due to data adjustments—the bot halts automatically and notifies you.

Use control notifications during initial runs to observe behavior without risking live trades.

Managing Your Trading Bots

Access full management controls via the Trading Bot Widget:

Cloning allows rapid deployment of similar strategies across assets while preserving configuration integrity.

Plan Limitations & Best Practices

Downgrading to a plan without backtesting support stops all bots. Bot limits vary by subscription:

Contact support for higher-tier needs.

Recommended Best Practices

  1. Test Thoroughly First

    • Backtest thoroughly
    • Run bot in simulation mode with verbose logging
    • Confirm alignment before linking execution webhooks

  2. Avoid Manual Interference

    • Don’t manually trade assets managed by bots unless correcting errors

  3. Crypto-Specific Tips

    • Maintain reserve funds for transaction fees
    • Use percentage-based position sizing instead of fixed amounts

Frequently Asked Questions

Q: Why was my bot stopped with “can’t be trusted anymore”?
A: This rare event occurs during a failed health check—usually due to backend inconsistencies or indicator instability. Our team investigates all incidents immediately.

Q: My webhook didn’t execute—what went wrong?
A: Enable verbose control notifications to receive server response logs. Check JSON formatting and consider enabling retry attempts for unreliable providers.

Q: Why was my stop loss triggered late?
A: Currently, stop-loss, take-profit, and trailing stops activate only after candle closure—not intrabar—even if price hits the level earlier.

Q: Can I use forward-looking indicators like Williams Fractals?
A: Yes, but carefully. Fractals form two candles in arrears; use offset conditions like High (2 candles ago) = Fractal.Bear (2 candles ago) for accurate logic.

Q: How many bots can I run?
A: Depends on your plan—ranging from 5 (Standard) to 100 (Advanced). Legacy plans vary; contact support for specifics.

Q: Do I need coding skills to set up a trading bot?
A: No. TrendSpider provides a no-code interface for designing strategies and configuring bots using visual tools and rule-based logic.

👉 See how top traders design profitable automated systems today

By following this structured approach—from strategy validation to smart configuration—you can build reliable, high-performing trading bots that align with your market goals. Stay disciplined, monitor performance closely, and leverage automation to enhance consistency and efficiency in your trading journey.