Are Trading Bots Legal? Is it openly used by anyone?

jademaxsuy

full member

Activity: 924

Merit: 221

Quote from: heygeorge on April 29, 2020, 10:02:27 AM

I'm just curious about this things because I've heard and read some guys don't suffer loss using trading bots and creating one can bring you money. If they are openly discussed, I would like to know but if not please let me know. I've tried searching in the forum and all I see were posts from more than 5 years ago. Could any good person enlighten me about this concern? Thanks. Huh

Many traders used bot to make their trading a lot more less time consume and they can do other things too. You also have to be careful and choose a legit trading bot. Mostly, you have to set the bot yourself regarding on your own choice. You need to have knowledge on how to use trading bots too. Good luck.

BrewMaster

legendary

Activity: 2114

Merit: 1293

There is trouble abrewing

Quote from: heygeorge on April 30, 2020, 11:13:53 AM

I am thinking like if I learn to program a trading bot,

knowing programming is only like 10% of the things you need in order to actually start making profit while trading with a bot.
the most important thing you need is experience in trading and ability to be able to speculate with high accuracy. and also know what to do in difference situations.

Quote

- I would try to put limits on loss like 5% then automatically sell the my coins to avoid further loss
- Then program to buy when coin started to raise by 5%
- Put on sell when reached 10% of profit but will buy again if there is a raise of another 5% on the price.

see that is the problem, it looks good on paper but in reality you will face a volatile and unpredictable market. there is a lot of times when they start to pump and altcoin for example but fail that means a very sudden dump right after a small rise. no bot can act that quick (there is delays in executing order, getting the updated price,...)

Quote

If there are people who understands what I'm trying to point out here, do you think would that work? Or the figures are a little bit high already. Just want to get an idea about the limits like which is suitable.

it could work but in my opinion there are a lot of other easier ways to make more money trading cryptos.

heygeorge

jr. member

Activity: 37

Merit: 4

Quote from: Little Mouse on April 29, 2020, 09:33:20 PM

It is not illegal. But your thougts on trading bots are not clear about the loss/profit thing. Usually, bots trade for you but they are written script and they can not perform anything else other than the script. In a sudden economic event, trading bots will just kill your portfolio because in big event, price get dip significantly which may be lead you big lose.

Thanks for answering my concern. By the way, I do have idea on how profit loss thing works and knows a little bit of coding that's why I've asked if its a legal thing that I can play with and someday profit with it.

I am thinking like if I learn to program a trading bot,

- I would try to put limits on loss like 5% then automatically sell the my coins to avoid further loss
- Then program to buy when coin started to raise by 5%
- Put on sell when reached 10% of profit but will buy again if there is a raise of another 5% on the price.

If there are people who understands what I'm trying to point out here, do you think would that work? Or the figures are a little bit high already. Just want to get an idea about the limits like which is suitable.

chainese

member

Activity: 299

Merit: 13

As I know, many platforms including the biggest ones use bots. So why not? This practice happens not only in the crypto, but in other assets' markets as well. Though, I haven't met the case of using bots openly.

HCP

legendary

Activity: 2086

Merit: 4361

They're generally not "illegal"... especially if the exchange you're using has a published API and allows access to it... that is the whole point of having the API after all... to allow trading programatically.

Quote from: heygeorge on April 29, 2020, 10:02:27 AM

... I've heard and read some guys don't suffer loss using trading bots and creating one can bring you money.

However, based on my personal experience with Trading Bots... I would recommend that you don't believe the hype and do NOT use trading bots! Tongue

At least, not the one I'm using... I'm down about 75% from my initial 0.1 BTC investment... to just 0.025 BTC... Roll Eyes

Sohyun Park

member

Activity: 103

Merit: 10

It is Legal and there are many wallets and exchanges giving the option to trade your funds on their bot. For Example Magnum has a auto trading option. Magnum is a wallet and it enables the bot through API and you can monitor it through telegram app. There are more such facilities.It is not important whether the facility of bot is available or not.

The important thing is

To know the PnL ratio of the BOT.
If there is no such previous data available then test it with very small amount or try it on testnet.
Even after all of this please make sure that the bot is placing proper stop loss so that even if the market goes against the order set then you face minimal loss and are not liquidated.
If the bot is not setting stop loss then you set manually by logging in to your account.

Note: I am not here to promote magnum thing, please do your research before using it.

boyptc

hero member

Activity: 3024

Merit: 680

★Bitvest.io★ Play Plinko or Invest!

I guess the mindset you have is whenever traders use bots, it's a guaranteed profit.

It's not like that, you have to think of it again. If you have no idea how they work, take time to study it first before getting one.

slackovic

legendary

Activity: 2590

Merit: 1236

Quote from: heygeorge on April 29, 2020, 10:02:27 AM

I'm just curious about this things because I've heard and read some guys don't suffer loss using trading bots and creating one can bring you money. If they are openly discussed, I would like to know but if not please let me know. I've tried searching in the forum and all I see were posts from more than 5 years ago. Could any good person enlighten me about this concern? Thanks. Huh

If someone created a bot that's earning him money without risk, don't you think that everyone would be talking about it? Like someone told you, there is no bot that will automatically earn you money. Every trader that uses a bot spent some time fine tuning it because every bot trades according to an algorithm. Some traders use bot to do thing that a trader can't except if he looks at the charts all the time. For example, you can't set a buy order at some price and automatically set a sell order that will be placed if that buy order goes trough. People use bots for that.

Little Mouse

legendary

Activity: 2156

Merit: 2100

Marketing Campaign Manager |Telegram ID- @LT_Mouse

It is not illegal. But your thougts on trading bots are not clear about the loss/profit thing. Usually, bots trade for you but they are written script and they can not perform anything else other than the script. In a sudden economic event, trading bots will just kill your portfolio because in big event, price get dip significantly which may be lead you big lose.

hatshepsut93

legendary

Activity: 3024

Merit: 2148

Quote from: heygeorge on April 29, 2020, 10:02:27 AM

I'm just curious about this things because I've heard and read some guys don't suffer loss using trading bots and creating one can bring you money.

This is one of those cases when something sounds too good to be true, it probably is. There's so much that can go wrong here, it can be just a scam when the owner of such bot just collects money from investors and disappears, or runs a ponzi scheme. Or maybe the bot owner is just selling a script that doesn't work as advertised. Or maybe it works under certain market conditions, and then breaks and starts losing money when the market trend changes.

What I'm saying is that if you could just make a program that makes money for you, everyone would do that, and humans wouldn't be trading at all these days. Yes, there probably are trading bots that make profit, but they require observation and control by professional traders, and I doubt that people who own them would be willing to sell them with the public.

masulum

legendary

Activity: 2324

Merit: 1604

hmph..

Maybe using a bots will make a trader with more than 5 account in few exchange. They are use a bots to make their trading activity more easy and effective. And i don't think they will use a free bots or cheap bots to do that, since use a bot have a lot of risk. Let's think about trade API on the bots, we never know if bots developers use that to manipulate our account. When it happen we can lost our asset from exchange very easy. As @ddmrddmr i will suggest think about the risk first before use a bots for trade. Because even we are not use a bot if we have knowledge in Technical Analysis and trade management we can get profit and more safe.

heygeorge

jr. member

Activity: 37

Merit: 4

Quote from: DdmrDdmr on April 29, 2020, 10:26:08 AM

Just don’t assume that it’s plug and play, click, and get rich. The algoritms need to be selected and parametrized according to your needs, and sudden market sways may not be played well if parameters are not thought through.

I will keep this in mind. And don't worry because I have some background studying algorithms and I believe it will be fun to learn something like this and earn at the same time. I believe there are people who are looking for something like this kind of post and thank you for sharing it with a fast response.

If you have other things that you can share for those people who would read this thread in the future, that would be great. I also hope that other people would jump into this thread and give their own opinion about trading bots and probably share more. Grin

DdmrDdmr

legendary

Activity: 2338

Merit: 10802

There are lies, damned lies and statistics. MTwain

They are not illegal, but you also have to make sure that the one you are interested in is legit. After all, they are going to trade on your behalf and use an exchange API to access your account, so you need to assess pretty well the reputation of the trading bot, and consider just how much you are willing to let it manage (that is to say, the amount you can expose).

It would be nice if others with hands-on experience could bear their testimony here. Unfortunately, I am not in that situation, but a couple of years ago I did take some time to look into them.

Bearing no relation to it whatsoever, and without intending to vouch for it, I did find it interesting to read through a thread here on the forum at the time: [GUNBOT] Trading Bot with 136 exchanges available. Even if you are not interested in that particular software, reading through the thread and the wiki is pretty interesting, and let’s you get a view on what this sort of software can do (you’ll also need to figure out what it can’t and the associated risks).

Just don’t assume that it’s plug and play, click, and get rich. The algoritms need to be selected and parametrized according to your needs, and sudden market sways may not be played well if parameters are not thought through.

heygeorge

jr. member

Activity: 37

Merit: 4

I'm just curious about this things because I've heard and read some guys don't suffer loss using trading bots and creating one can bring you money. If they are openly discussed, I would like to know but if not please let me know. I've tried searching in the forum and all I see were posts from more than 5 years ago. Could any good person enlighten me about this concern? Thanks. Huh

Topic: Are Trading Bots Legal? Is it openly used by anyone? (Read 279 times)