The main categories
Each category makes a different bet about the market and carries a different failure mode.
- Grid bots: profit from oscillation, fail in sustained trends.
- DCA bots: average entries over time, no exit logic by default.
- Arbitrage bots: capture venue spreads, latency and fee sensitive.
- Market-making bots: earn spread, exposed to adverse selection.
- Signal bots: execute third-party calls, quality is entirely the signal's.
- Copy-trading bots: mirror another account's live positions.