Algorithmic trading on financial markets is one of the key trends in investment and trading today. Based on this connection, it is possible to use trading bots – automatic programs that, based on pre-programmed algorithms, can analyze market data and make decisions to buy or sell assets. This is software that automates the process of active trading on the financial market. It uses pre-defined algorithms to analyze market data, identify buy or sell signals and execute trades without human intervention. The algorithms can be simple, based on technical indicators or designs that incorporate mathematical models and machine learning. A trading bot analyzes data at first, including market quotes, trading volumes, volatility and other indicators important for making trading decisions. Some bots also use fundamental data, such as news or financial reports, to analyze the market in more depth. When the bot finds the right signal, it automatically starts the process of buying or selling assets according to the algorithm. This can be an active buy when certain indicators are crossed or a sell if the price has reached a set level. The algorithmic bot also manages risk by using loss limiting tools such as stop losses, take profit and money management rules. This helps protect the trader from sudden changes in the market and reduce potential losses. Bots can analyze and process huge amounts of data in fractions of a second, making them much faster than humans. This allows bots to react instantly to changes in the market and make quick decisions. One of the main advantages of using bots is the influence of the emotional factor in the trading process. People often make mistakes under the influence of emotions, such as fear or greed. Bots work strictly according to algorithms that minimize erroneous mistakes. Trading with bots allows traders to automate routine tasks such as analyzing charts and executing trades. This is especially important for traders who work with multiple assets or in multiple markets simultaneously. Bots that work on trend-following strategies, depending on the direction of the market. They buy assets when the price rises and sell them when the price falls. This strategy is based on the assumption that the price movement will continue in the same direction. No matter how advanced a bot is, the market can become unpredictable. Sudden changes, such as crisis situations or political events, can lead to losses, especially if the bot is not programmed to operate in a high volatility environment. Algorithm trading bots provide traders and investors with a huge opportunity to automate trading processes, increase efficiency and minimize human error. Through the use of algorithms such as machine learning, technical analysis and mathematical modeling, such bots can analyze huge amounts of data and make incredible decisions.