Institutional traders rent or create their own bots that activate when the market hits certain conditions. These algorithms constantly search markets for the right trade setups, such as finding oversold stocks or trading a breakout. When they find the right conditions bots run scripts that determine the position size, execute the trade, employ stop-losses and exit automatically.
Source: https://www.coindesk.com/consensus-magazine/2022/12/14/ai-crypto-trading-bots-2023/?utm_medium=referral&utm_source=rss&utm_campaign=headlines