Crypto trading bot can handle volatility by using pre-configured risk management tools like stop-loss and take-profit orders. These features help protect the trader from excessive losses during significant price fluctuations. Bots can also be programmed to trade in a more conservative or aggressive manner, depending on the user’s risk tolerance. Trend-following bots, for example, might try to capitalize on volatile uptrends, while scalping bots might avoid extreme swings by executing quick trades. However, no bot can fully predict or eliminate risk, so even automated systems can experience losses during extreme market conditions.