Topic: What I've learned after 3 years building an algo trading bot (Read 283 times)

I worked for one for a year as well in 2017 but I can easily tell that most of them do not know what they are doing. If the whole idea worked so perfectly then they would have used it themselves and make themselves rich.

The idea is that they are both making money from selling, which is growing their capital for their own product, but also they can get richer and faster this way, and using the bot would require a lot of fixing too. They see you as customers but also as beta testers as well and when there is something to fix, you tell them what is wrong and they fix it, and if there is an idea, you suggest it and they improve it, so they get richer from your help too.

Yes, this is very good option if i set any stock for sell at $50 then my software will sell it automatically and suppose i am sleeping and market's price go down and i don't know when should i buy...my software know about the lower price which i set ...it will buy on my behalf so it will very beneficial for me

First of all: thank you for sharing your experience about your bot. 4-6%/month is not that bad. I am very eager to read more about your experiences.

Some words about your possible intention to sell your bot:
Most bots have their own personal purpose which hardly could be extrapolated to other people's intentions. I think that's why most bots can't be sold at all. Sometimes it's technique is even difficult to explain to others. Yes of course it's a bot and it should work by itself. But I am sure even your bot works with some parameters, which change over time and level of experience.
So my advice would be, before selling your bot you must be sure about it. 100% sure. Most people will take it as it is and then are disappointed if it wouldn't be successful over some amount of time. If I had a successful bot, I never would sell it. Just because of stupidity and idleness of some people using it. There is still no reason to sell a successful bot. But there are many to sell a lossy one. By the way that's why I would never buy one.
Maybe I would give it away for free to a good friend. But in some way this doesn't make sense too - too much to explain/support. So keep it and enjoy your earnings. Just my opinion.  

This is true, that’s why many traders chooses to play in the market on their own instead of relying to any bot because they are more confident about their skills, than to use bot. Creating such a system is not easily at all, and look even if you are good with the numbers you can still find a hard time setting up your own bot so kudos to OP for having a good discipline on making his own bot, i hope trading works for you very well.

And I personally think this is the right approach, people fail to realize how difficult it is to actually create a strategy that can make money out of the markets, and to create a bot that can execute that strategy is way more difficult, so after so much effort has been put into such project it is very difficult for the developer to actually release it without trying to profit from it in order to recover all the time, energy and money that he has spent trying to create such an exceptional bot.

There are still bot that works good but since you have your own standard, you might find a hard time finding them. What worked with OP is that, he created his own system that can work for his own timeline and expectation, it took time before he saw some changes and it’s really good to see the result once you’ve done it. That was a great work OP, 3 years might be long to others but dealing with such numbers is not easy at all. I hope that bot can work perfectly in trading and maybe you can also have a licensed for that so other traders can also try it.

Trading bots are good if you know how to program them right.
But if you want to learn the basics of trading first, you will trade manually.
This is also good for yourself to understand better this market.
In that manner, you can also develop your bot better.
When it comes to using other bots, be very careful as you don't know what they are programmed to.
There may be hidden commands that you are ready for. As much as possible, make your own trades, if bot is not really necessary.

actually depending on the bot application used, there are some bots that do help to make the trader's job easier and there are bots that are used for full trading but have a high risk of losing. Trading bots are just for automation, but don't trust bots completely. many bots end up scamming and stealing funds from all their users, such as the fahrenheit trading bot and many trading bots that are very detrimental. it's good to learn technical analysis, trade manually using our own analysis, it will be better because we have full control for the funds we trade. Don't be fooled by the promise of big bonuses, it's just bait to get more people to use it.

So far, I have not found a trading robot that fulfills all my demands. There are good robots, but they lack a very important thing, which is artificial intelligence similar to human intelligence. I want a robot that thinks as humans think, meaning that it is able to take the appropriate decision in the event of market fluctuations as we humans do. I tried many robots but I didn't get a good result, I didn't try all the robots of course so I don't know if there is a real AI robot.

4-6% /m

^ Theres one bit that I tried playing around, it didnt work well for me. I profit from the beginning and then gradually losing more. The bot still follows the trend so if there is a bullrun thats when I make more money.  And will also lose when its bear. Conclusion is that, why bother using it. I'd be better doing it manually after all i'm addicted to checking crypto prices every minute.

I dont know about you guys but I would never trust a bot to trade for me. There are just so many variables for which you cannot account for and if they should occur, your bot really will not know what to do next and might lose all or at least some of your money. Trading bots are made for convenience, not because they are actually better at trading than humans. After all, its your trading strategy just in a automated form. The convenience is not worth the risk to me.

And not all code can be seen as equal. Even if someone were to develop some amazing code which makes a lot of profit most of the time, why would anyone share/sell that to anyone? Would it not be better to keep it to yourself?

Not really a fan of trading bots, suffice to say.

That's great but you still haven't mentioned the ROI because that's what grabs peoples attention.
It's good that you are gaining consistent profits but can you show us how much profits you are making a month.
It's hard to make money in a sideways and falling market.

You are right because he will like to secure the information for personal use only, or before the information is been dispense or circulates maybe their will be an option of selling the methods of making profit if it happens to work properly, this is from my own perspective

I assume you are either referring to Quants or HFT (High-Frequency Trades) bots... HFTs are computer programs designed to fill in large amounts of orders, they aren't "trade" bots, and they aren't used to make money in that sense, Quants on the other hand are mathematical models like VWAPs based on Deviations. Again the job of the Quants isn't to hit those buy and sell buttons. Quant is a fancy term for "math", for creating statistical models. Once a model has shown profitability it's coded out just like any other bot. There is just too much misinformation about this industry... The 3rd types of bots that come to mind are a sub-category of HFTs and are used to fill large orders but for the firms and obfuscate large positions again nothing to do with the decision-making, the parameters are set by humans.

Also, I don't think the OP has anything great up his sleeve. It's a sales pitch nothing more, and a pretty lousy one. No one masters this market in 3 years especially if one has 0 knowledge about the market. What OP is pitching is equivalent to saying, I'm a great programmer but I haven't studied biology or gone to med school but I can program a robot to perform a complex heart surgery cuz I have "filled roles from programmer to CTO most of my life". As if any of those two have any relationship.

Once you work hard  in order to find a way to make profits out of the markets it is going to be very difficult to share it with anyone even if you charge money for it, the OP took 3 years in order to create this bot, so selling it is probably not a good idea right now even if it is really profitable, probably the best option for the OP is to profit from his bot and to keep improving it for years or even a decade and only once he has enough capital to create a business around the bot he may try to do so.

Machine Learning is not magic,
The data you teach the machine will be the output of his learning:
good data in -> good data out
garbage in -> garbage out

there is no such thing as garbage in -> good data out

There are too many cases in the software industry where AI (prefer to call it neural network) is used as a marketing buzz-world just to show that someone uses the latest technology. 

The real  interesting topic here is the difference between the Baeysian method of learning and the classical scientific learning.

The bot is proof of work and in production mode for more then a year now, meaning running 24/7 on real money. Makes monthly profit on the portfolio no mater what the price or trend is.
My focus was on creating a constant weekly, monthly profit over time, while the bot is totally autonomous, and it has to show has to show consistency of profit over time, Achieved both goals.

Gave some thought  on developing a user interface for it but at this time, i'm not into supporting hundreds or thousands of customers. maybe in the next phase - an autonomous user support..
 

Wow, 3 years is definitely a good amount of time. It seems like you must have worked really hard on this bot.
But what happened eventually ? Is the bot ready for action or are you still working on it.
If it is ready then can you please post the trades or some info on it's ROI.
May be if it's giving decent profits then you can sell your bot to others and gain additional income for yourself.

Maybe the one you are mentioning about garbage bots or normal ifs and else statements are those script kiddies bots that are available online.
You forgot that there are some entities or big traders that have bot some different purposes and those bots are not ordinary, some of them already have machine learning (AI) integrated which over time, collects data or learn from past price actions and more accurate somehow or more precise but I believe it's still not 100% accurate all the time.