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Trading Bots for Beginners — How to Avoid Mistakes in Your First Setup

14 July, 2025

You no longer need to be a programmer to use a trading bot. Many platforms offer ready-to-run solutions for automated trading. But the first setup is often the most critical — and most overlooked. Beginners tend to jump straight into live trading without understanding how bots operate or how to properly test them.

This article offers a step-by-step guide to launching your first trading bot safely — from platform selection to performance monitoring.

Step 1: Choose Your Platform and Bot Type

Beginners are best served by MetaTrader 4 or 5, which are widely supported and beginner-friendly. Crypto bots are also an option, but they typically require API integration and more tech knowledge.

For installation, follow the guide on setting up a trading advisor in MetaTrader

Step 2: Configure and Test the Bot

Before going live, make sure to:

  1. Set lot size and max drawdown
  2. Define stop-loss and take-profit levels
  3. Run backtests on historical data
  4. Test in a demo environment if possible

You can learn more in Algorithmic Trading for Beginners

Step 3: Monitor and Adapt

After launch, don’t assume it’s «set and forget.» Beginners should:

  1. Review performance weekly
  2. Check execution logs for errors
  3. Adjust parameters if market conditions change
Image of the trading robot

What Not to Do on Your First Run

  1. Deploy the bot on your entire account
  2. Use excessive leverage
  3. Download bots from unknown sources
  4. Disable alerts and notifications
  5. Assume the bot will always make money

FAQ

Can I start with a free trading bot?

Yes, but test it thoroughly. Many free bots are outdated or not adapted for current markets.

Is backtesting really necessary?

Absolutely. It helps you understand how the strategy reacts in different market environments.

How much can I earn on the first run?

Don’t focus on profit. Your goal should be to learn the process and protect your capital.

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