Automated Strategy

Definition ∞ An automated strategy executes trades or manages digital assets based on predefined rules without human direction. These systems employ algorithms to analyze market data, identify opportunities, and perform actions such as buying, selling, or rebalancing portfolios. Their operation aims to remove emotional bias and increase efficiency in digital asset management.
Context ∞ The discussion around automated strategies in crypto often centers on their efficiency in volatile markets and the technical risks associated with smart contract vulnerabilities or programming errors. Future developments focus on improving their adaptability to market shifts and integrating advanced machine learning techniques for enhanced performance.