# Why AABot By [AABot](https://paragraph.com/@aabot) · 2024-09-18 --- The description in this article will be kept as concise as possible, as we believe that great products are backed by simple logic. ### Demand As the blockchain industry evolves, particularly with the approval of BTC and ETH ETFs, profit opportunities for centralized exchanges appear to be shrinking, while more potential lies on-chain. The needs of on-chain traders are straightforward: fund security and profitable trading. Let’s break these needs down: 1. Fund Security: Protecting your private key is crucial. Once compromised, your funds are irretrievable. 2. Profitable Trading: Traders seek tools to easily develop strategies, execute them precisely and promptly, and have the flexibility to trade manually or automatically, anytime and anywhere. Initially, on-chain trading was conducted directly through DEXs like Uniswap and Raydium. However, as demands for faster response times and a more convenient trading experience increased, DEXs have struggled to keep pace. This led to the rise of Telegram Trading Bots. If these two key needs — security and profitability — can be addressed, the TG Bot space is a promising avenue to explore. ### Identify problems Currently, Telegram trading bots in the realm of on-chain trading have successfully met users’ needs for a fast and convenient trading experience. However, there are still significant shortcomings when it comes to customizing and automatically executing strategies. This is why many people don’t use Telegram bots regularly, opting for them only when they don’t have access to a computer. The Telegram bots available in the market today cannot also fully customize strategies or automatically execute relatively complex ones. Regarding security, traditional Telegram trading bots seem to have made some efforts, yet incidents of private key leaks and asset theft still occur. Users are advised to avoid storing significant amounts of funds in these bots and to transfer funds out once a trade is completed — an inconvenience in itself. We have extensively used the following products: Trojan, BananaGun, Maestro, BONKbot, SolTradingBot, among others. Although these are excellent tools that often perform well, they still fail to address two critical issues: **securing private keys (fund security) and allowing the customization of complex trading strategies**. TAABot was created specifically to solve these two practical problems. ### Solving problems #### Private Key Security Trading through social media platforms is intriguing, but it raises several security concerns. What if someone sees your trading interface? What if your private key gets leaked? What if the social media account itself is hacked? And what if the Telegram trading bot provider, who has access to your private key, tries to withdraw your funds? If the product doesn’t hold the private key at all, the risk of private key leaks is completely eliminated. This isn’t wishful thinking — AABot utilizes Abstract Account (AA) technology. When funds are transferred to the AA, the bot executes trades, and withdrawals can only be made to a pre-set address (referred to as the Admin address). No one can withdraw funds to any address other than the Admin address. Even in the worst-case scenario where your Telegram account is hacked, your funds remain secure. The Admin address could be a centralized exchange (CEX) deposit address, a hardware wallet address, or even a hot wallet address. #### Profit Strategies There are countless trading opportunities on-chain, but profit strategies differ from person to person, and truly profitable strategies are rarely shared. This creates the need for a simple pathway that allows users to customize their own strategies, test their feasibility, and automate trading. After extensive research, AABot has established multiple signal groups across various dimensions, such as the number of transactions in 1 hour, price increases in 1 hour, price decreases in 1 hour, newly launched tokens within 1 hour, and the top 10 tokens by price change and turnover ratio. These parameters form what are called primary signal sources. However, these signals serve only as an initial filter to identify tokens that meet basic criteria across different dimensions and cannot be used directly. AABot Token Alert Group: [https://t.me/aabottokenalert](https://t.me/aabottokenalert) ![](https://storage.googleapis.com/papyrus_images/a94ffd2982e3e87effb584e115839180769d5ece9dd8775afe3a7e5c84bb8643.png) Note: AABot currently supports the Ethereum blockchain, with plans to support other blockchains and Layer 2 networks in the future. The real work begins with the next stage of filtering, where primary signals are refined into custom signal sources, known as secondary signals. In AABot, no matter how the filtering conditions or strategies are configured, users can instantly view backtesting data. By continuously backtesting, adjusting, and refining, users can develop reasonable and profitable strategies. This process naturally requires significant effort from the strategy developer, as crafting an effective on-chain trading strategy isn’t easy. AABot aims to broaden the scope of strategic thinking, improve data precision, and accelerate strategy creation. In AABot, no matter how the filtering conditions or strategies are configured, users can instantly view backtesting data. By continuously backtesting, adjusting, and refining, users can develop reasonable and profitable strategies. The image below shows the specific settings for Custom Alert. ![](https://storage.googleapis.com/papyrus_images/51aa81c6046bf0ebe1e4fd1dd943adbd7ae4afa3da1b9bcf2cf8424ceb5e0c3c.png) Click [here](https://aabot.gitbook.io/aabot/token-alerts/custom-alert) to learn how to create a Custom Alert. Here is an example of backtesting data. ![](https://storage.googleapis.com/papyrus_images/9a50b1736c7206a12abe2cd42142c59be7690594dcd5f08d4ac37cb2cd36c632.png) AABot has many features that cannot all be covered in this article. However, the two most critical aspects of the current product are private key security and profit strategy. In the future, more articles will introduce AABot’s detailed considerations and practical functionalities. --- *Originally published on [AABot](https://paragraph.com/@aabot/why-aabot)*