Scalability is the ability to easily increase (or decrease) server resources according to demand. In cloud/VPS hosting, you can scale your CPU, RAM and storage up or down on the fly. For automated trading, scalability means starting with a small server and growing it as your strategy expands or requires more performance. It also means you only pay for additional power when you need it. The cloud model is especially scalable – if your trading bot suddenly needs more CPU (for example, during backtesting or high market volatility), you can allocate more cores or memory in minutes. This flexibility keeps costs efficient and performance adequate.

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