Why TradingView Webhook is a Powerful Tool for Trade Automation?
Crypto trading is quite a challenging game as it’s unpredictable. As the crypto market is volatile and prices of cryptocurrencies fluctuate within minutes, the traders need the right strategy and automated tools to take full control of their trades. Crypto trading bots and trading signals play an important role to help traders execute their trades smartly.
For traders looking to set the strategy on their own can include notification alerts in their strategies. However, one can’t execute trades consistently in the required time frame. And, this is why trading webhooks came into existence. No matter if you are a beginner or an expert trader; the webhook can execute your trades automatically on almost every trading platform.
Now, let’s understand what is webhook?
Webhook
Webhooks are the automatically configured notifications that transmit information instantly to third-party sites or applications. After initiating the webhook, the HTTP request is formed for the user’s unique URL and the information is transmitted through the secure channel.
Webhooks solve the problem of receiving any information in real-time. Usually in crypto trading, webhook trading bots are configured in advance to set any task for a response including:
- Creating or changing the order status
- Subscribing or unsubscribing
- Trade enquiry
When it comes to crypto trading, one can make use of Tradingview which is a charting platform allowing its traders to pull up any crypto chart and draw technical indicators or lines instantly. The platform has a robust API which will enable you to subscribe to the trade alerts from your account. Trading View Webhook is an extension to this platform’s API and is designed to take those signals generated by TradingView charts explicitly and then execute the trade on the behalf of traders.
The best crypto trading platform offers signal automation methods to the traders where they firstly create a signal template, configure trigger as webhook, and then send data to webhook URL from the apps like Tradingview. So, webhooks are the automated messages sent from the apps like TradingView when something happens. They have a message which is sent to a unique URL. These are quite faster than anything and require very less work or efforts on the trader’s end. These are like SMS notifications.
Webhooks have been added to the most popular crypto trading platforms and users can use the third-party exchange services to improve their trading strategies.
How can one connect the webhook for the Trading View signals?
To get a webhook, you need to create an API key in the crypto trading platform. If you have an active API, then there are chances that each trade will confirm the option Show Webhooks. Fill in the fields in the TradingView web panel as per the documentation.
To configure TradingView alerts on any platform, you can select the trade where you want to receive the alert. Determine the action either buy or sell and now determine if you want to use market order or limit order. And, the last step is to click on create an alert.
To set up a TradingView Webhook, crate a paid account first and then you can start it as:
- By adding new alerts or modifying the existing ones. Connect your trading account on any crypto trading platform to TradingView, search for your desired cryptocurrency, and then hit on the alarm icon present on the upper left corner of the chart.
- Now a dialogue box will appear and on that, there will be a webhook section with an input field labeled as URL where you will add the webhook’s address. Then you can input the buy or sell script message sent to your chosen exchange whenever an alert occurs.
Why should one use a webhook?
We all know that the crypto trading market is highlyvolatile, and it’s quite impossible for one to place trades at the right time. Notification alerts are quite helpful, but making use of webhooks is the best option if you want to trade as quickly as the signal is received.
Here are some key benefits of setting up TradingView alerts to automate trading with TradingView webhook:
- Automatically execute your trading strategy
- Allows you to never miss any trade again
- Lets you trade with more confidence and less worried about the market trends and fluctuations.
You will set up the parameters of when to take profit and when to execute stop-loss, and then webhook will send the signals to the third-party sites, and open or close position on your behalf. With TradingView webhook trading bots, you will no longer miss any kind of profitable trade.
Traders can automate their positions with the TradingView alerts by building a webhook trading bot using a third-party crypto trading platform. Once their chosen indicators trigger any kind of alert, the trading bot built using the third-party trading platform will execute the trade automatically on your behalf.
The creation of this webhook trading bot ensures a seamless experience for traders by saving their time and money. There are numerous reasons for choosing the webhook services from TradingView, but usually it is used by those traders who want to automate their trades. Whenever you are busy and have no time to watch the market trends or charts, using Tradingview webhooks is the best option.