Topic: Communitary crypto trading bot: would it work at all? (Read 135 times)

Hi guys,

let's suppose that I created a successful crypto trader bot, operating with low volume just following the market movements from an universe of around 100 coins. Let's assume also around a 85% of successful trades or so, either in bull, sideways or bear markets. The high rate of success is explained because the small volume doesn't affect significantly the overall market. In other words, this fictional bot it is completely different from a whale's one, which eats weak hands while moving the market.

But now I want my bot to make the transition from market follower to market mover. For this evolution to occur, I believe the only two things my bot needs are: to improve and adapt its trading algorithm, and way more volume to trade. To update the trading algorithm seems straightforward based on previous experiences and existing knowledge. To acquire more volume is where I need your help and insights, please feel free to send me private messages if you feel more comfortable. So far, I have the following naive ideas in my mind:

a) To sell the crypto bot for a hourly, daily, weekly, monthly or annual fee. With this profits I will also increase the trading volume in the bot's trade account. To prove the success of the bot, I would count mainly on rankings of the previous users. This is similar as previous projects like "Haasbot", "Gunbot", or the ones in "Cryptotrader".

b) To publish online the most recent bot actions in a webpage, subreddit or bitcointalk forum, twitter account, telegram/whatsapp/discord, or even a new app. Of course the past trade history will remain public in this platforms to prove the previous success. I can see this happening in two different ways:
i) To sell every trade information for a fee, and the buyers will receive the information some minutes or seconds before than the general public. This sounds very much like the infamous "Pump and Dump" schemes to me.
ii) To publish the trades for free, and let the market itself decides the fate of every trade. If the bot proves to be successful, the people will follow it and this would move the market anyway in the bot's favor. Something similar has been done for example with "Vicki the Cryptobot" some months ago.

c) In the unlikely event of this bot becoming an extremely successful crypto trader, it makes sense for the project even to have its own cryptocurrency. Its value will increase over time reflecting the successful trades, and this could bring every time more volume for moving the market. Going beyond, the project could become big enough hire experts and to be at the forefront of artificial intelligence research, and to transform in a sort of crypto market stabilizer, in order to avoid crashes and ensure a sustainable grow. I see some similarities with the "Cindicator" project, but the difference is this project would have an associated coin only with a working and successful product (the bot), and not before.

I could easily imagine that this kind of bots already exists in the crypto markets or in the stocks market. Any related information is highly appreciated.

But maybe the project flaw would be that this potential high volume and popularity will effectively decrease the success rate of the bot in a way I can hardly imagine right now (even if this sounds somehow logical to my intuition).

What would you do regarding such a successful bot:
1) as its owner and/or creator?, or
2) as an investor?


TL;DR: If I have a successful crypto trader bot, wouldn't increase its success if more people will trade following it (a win-win situation)?


Many thanks for your time!