High frequency bots
High frequency bots are automated strategies that can trade quickly and efficiently. They are designed to analyse large amounts of data at lightning speed and react to changes in the market, enabling them to execute trades in fractions of a second.
By exploiting these small price movements that are invisible to human traders, they can make a profit. These bots are also used to mitigate risk by automatically placing orders when certain price levels are reached.
Because the differences are small, your profit per trade is also minimal. But the amount and frequency can still provide considerable earnings over time.
What is special about these fast-acting bots is that they trade at a lower rate, even about 70% less. As a result, they can trade more often and therefore grab that higher frequency. The speed therefore compensates for those lower margins.