Should trading bots be banned? - page 3.

itod

legendary

Activity: 1988

Merit: 1077

Honey badger just does not care

Quote from: QuantPlus on November 10, 2013, 02:58:12 PM

Quote from: neutralist on September 18, 2013, 08:32:55 AM

HFT programs help maintain liquidity in the exchanges. You stripped them away, you get more unstable prices.

Very few people understand how HFT works.

Your typical exchange or ECN has 300 order types (NYSE, NASDAQ, etc)...
And there are only 2-3 Special Orders that matter to HFT...
The ones that put you straight to the front on the line.

If you pay the exchange large fees...
You get access to these Special Orders.

Therefore, HFT is just a massive scam by Wall Street to swindle the Middle Class.

http://www.risk.net/risk-magazine/feature/2261626/exchange-order-types-prompt-fears-of-hft-conspiracy

Is there a way to get more insight into this without having to pay for the content? Edit: or giving away massive amount of personal info?

grv

full member

Activity: 177

Merit: 100

Quote from: paahde on September 07, 2013, 06:41:02 AM

Far from normal. Easy to ban, just limit orders in API.

there are many more ways of dealing with bots
+ set minimum allowed amount of single order equal to 10 or 100 usd (to get rid of all that 0.000001 junk and chump change "orders"). such a waste of resources (all those unnecessary connections to servers)
+ set limit 1 order per account per 10 minutes
etc

QuantPlus

sr. member

Activity: 280

Merit: 250

Quote from: neutralist on September 18, 2013, 08:32:55 AM

HFT programs help maintain liquidity in the exchanges. You stripped them away, you get more unstable prices.

Very few people understand how HFT works.

Your typical exchange or ECN has 300 order types (NYSE, NASDAQ, etc)...
And there are only 2-3 Special Orders that matter to HFT...
The ones that put you straight to the front on the line.

If you pay the exchange large fees...
You get access to these Special Orders.

Therefore, HFT is just a massive scam by Wall Street to swindle the Middle Class.

http://www.risk.net/risk-magazine/feature/2261626/exchange-order-types-prompt-fears-of-hft-conspiracy

Corenin

legendary

Activity: 1008

Merit: 1000

Yes, ban those trading bot please..

LiteCoinGuy

legendary

Activity: 1148

Merit: 1014

In Satoshi I Trust

Quote from: countryfree on September 08, 2013, 12:05:48 PM

You shall learn that there trading bots everywhere, buying and selling oil, metals or currencies. Unfortunately, there is just no way to ban them. Often, you can't even tell they're bots.

yep, exactly. the complete NYSE is full of bots... Roll Eyes

waltermot321

sr. member

Activity: 322

Merit: 250

Quote from: hope4me on November 02, 2013, 04:10:08 AM

Quote from: Radelderth on November 02, 2013, 03:57:29 AM

Please ban trading bots, a lot of bot flooded bitfunder and they keep puting 0.0000001 BTC higher then your selling price or 0.000001 BTC lower then your buying price....

Just dont care about these bot orders, they keep puting 0.0000001 BTC higher then your selling price but the selling amount is insignificant

Well the problem is because their selling amount is significant

zvs

legendary

Activity: 1680

Merit: 1000

https://web.archive.org/web/*/nogleg.com

Easy way to limit them would be to charge a fee for placing limit orders

mrhelpful

legendary

Activity: 1456

Merit: 1002

To be honest, I never knew there was a trading bot til now. Roll Eyes

Eobot

newbie

Activity: 26

Merit: 0

No!

dddbtc

sr. member

Activity: 490

Merit: 250

Quote from: Radelderth on November 02, 2013, 03:57:29 AM

Please ban trading bots, a lot of bot flooded bitfunder and they keep puting 0.0000001 BTC higher then your selling price or 0.000001 BTC lower then your buying price....

Anyone who is serious about trading securities or bitcoins themselves should be able to spot stupid traps like that and understand how to not fall victim to them.

Look at the order book.

Remember: There is always someone content at selling at a lower price than you

Jabbatheslutt

full member

Activity: 168

Merit: 100

You can't really ban some of them cause they look real

krach

legendary

Activity: 1851

Merit: 1020

Get Rekt

"and what is this "trade signal"?"

Well it could be almost anything depending on the bot.
For exampe the "price" could be the signal.
Price = X --> Buy "set ammount"
Price = Y --> Sell "set ammount"

hope4me

full member

Activity: 126

Merit: 100

Quote from: Radelderth on November 02, 2013, 03:57:29 AM

Please ban trading bots, a lot of bot flooded bitfunder and they keep puting 0.0000001 BTC higher then your selling price or 0.000001 BTC lower then your buying price....

Just dont care about these bot orders, they keep puting 0.0000001 BTC higher then your selling price but the selling amount is insignificant

Radelderth

full member

Activity: 202

Merit: 100

Please ban trading bots, a lot of bot flooded bitfunder and they keep puting 0.0000001 BTC higher then your selling price or 0.000001 BTC lower then your buying price....

cryptoanarchist

legendary

Activity: 1120

Merit: 1003

Trading bots are awesome.

They can't help an idiot get rich because they're only a tool, and only as efficient as the trader that's using them.

Cypherpunk38

newbie

Activity: 40

Merit: 0

Quote from: paahde on September 07, 2013, 05:28:40 AM

On bitcoin exchanges, such as Mt. Gox and Bitstamp, there are multiple bots that buy and sell bitcoins at the same time cluttering the markets and the rate of bitcoin. The purpose of these bots is to gain profit, so traders will get more more tempated to start to use some kind of homespun trading bot. What will we see in six months? War of bots, that rally the rate of bitcoin and make markets completely volatile? That defintely isn´t good for the arising bitcoin ecosystem. So if the bitcoin exchanges want to be trustful, the bots should be banned, or should they? Huh

I definitely don't think that trading bots should be banned. IMO, if Bitcoin is going to prove to be a longstanding, viable, economy, then it's going to have to withstand things like trading bots and not really be horribly effected by them.

Full Disclosure: I'm developing a trading bot.

Infinum

newbie

Activity: 43

Merit: 0

Quote from: neutralist on September 18, 2013, 04:12:43 PM

Quote from: hayek on September 18, 2013, 12:27:36 PM

The only thing I understood in your post was that ... profit = bad.

This is the result of the Obama generation education.

Obama is a communist so at least he is consistent in one area Undecided

Bots are essential in providing liquidity and hence stability to the market.

neutralist

member

Activity: 85

Merit: 10

Quote from: hayek on September 18, 2013, 12:27:36 PM

The only thing I understood in your post was that ... profit = bad.

This is the result of the Obama generation education.

hayek

sr. member

Activity: 370

Merit: 250

The only thing I understood in your post was that bots = profit, profit = bad.

This is false.

neutralist

member

Activity: 85

Merit: 10

HFT programs help maintain liquidity in the exchanges. You stripped them away, you get more unstable prices.

Topic: Should trading bots be banned? - page 3. (Read 7978 times)