Why don't exchanges run their own bots?

Monnt

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Quote from: maydna on June 07, 2017, 02:56:08 AM

Quote from: PremiumCodeX on May 19, 2017, 03:35:01 PM

I have used bots some times and some of my friends are addicted to bots, I am just curious about this idea.

Why do not exchanges host the features in their own site as services,
why do they let 3rd party bots run instead of providing the possibilities themselves?

i think every exchanges have each of bots to control the markets beside of the traders using their bots too but exchanges don't tell the truth if they are using bots. with exchanges let the 3rd party using bots for doing trading, they hope that 3rd party can help the exchanges to make profits for the fee because when traders doing buy or sell orders, then they should pay some fee and its including as profit for the exchanges and they won't let this profit is gone.

I also did read similarly like exchanges are into a practice of populating fake orders/their own orders so that a typical trader will not bother about low volume/high gaps in trading environments.For these types of practices, exchanges must have used bots so that they will be able to do across different trading instrument and will be able to do on every price ranges too.

We can expect exchanges will start selling some of bots based services to their traders like reporting/scheduling kind of routine work based bots.

maydna

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Quote from: PremiumCodeX on May 19, 2017, 03:35:01 PM

I have used bots some times and some of my friends are addicted to bots, I am just curious about this idea.

Why do not exchanges host the features in their own site as services,
why do they let 3rd party bots run instead of providing the possibilities themselves?

i think every exchanges have each of bots to control the markets beside of the traders using their bots too but exchanges don't tell the truth if they are using bots. with exchanges let the 3rd party using bots for doing trading, they hope that 3rd party can help the exchanges to make profits for the fee because when traders doing buy or sell orders, then they should pay some fee and its including as profit for the exchanges and they won't let this profit is gone.

olubams

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Quote from: PremiumCodeX on May 19, 2017, 03:35:01 PM

I have used bots some times and some of my friends are addicted to bots, I am just curious about this idea.

Why do not exchanges host the features in their own site as services,
why do they let 3rd party bots run instead of providing the possibilities themselves?

The question you need to ask yourself as it relates to this and any one who might have the same curiosity is that " if they should make one available will I trust to use it?" Because I won't trust any exchange site to design a not and expect that bot to work against them considering the fact that there would be belief that it could be easily manipulated to favor the owners of the site by making it possible for all this pump and dump issues as it relates to shit coins.

cafucafucafu

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Quote from: PremiumCodeX on May 19, 2017, 03:35:01 PM

I have used bots some times and some of my friends are addicted to bots, I am just curious about this idea.

Why do not exchanges host the features in their own site as services,
why do they let 3rd party bots run instead of providing the possibilities themselves?

It's not worth it for them.

The development of the bot is going to be expensive. Their main focus is to bring in more users and ultimately generating more volume on their trading site, and usually making a bot doesn't help that much.

They do offer APIs though which means that people if they watn a bot can just develop themselves instead of having to beg the exchange for one. There is economic motivation for bot makers because they get subscription fees for their bot.

Zadicar

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Quote from: PremiumCodeX on May 19, 2017, 03:35:01 PM

I have used bots some times and some of my friends are addicted to bots, I am just curious about this idea.

Why do not exchanges host the features in their own site as services,
why do they let 3rd party bots run instead of providing the possibilities themselves?

They wont really do such thing because if they would able to create their own tradings bots for their exfchange and a newbie minded think of using it and losing some funds then they would really get the blame and would really ruin up their reputation for sure that they might claim that the bot might be designed to be rigged thats why they do let 3rd party.

Sadlife

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I dont either but i do have some conclusions maybe in some aspects people doesn't trust bots that came from exchange cause they might steal some money from their users, as we all know some of trading exchanges tend to steal money from their users and just call it a bug and the money is not refunded. People rather buy a well developed software or bot by an reputable developer that the in exchanges because for some reasons they dont trust it and might feel they dont have control over their money like the controversial Mt.Gox exchange that started it all that's why some people are having trouble in trusting this kind of exchanges cause they fear they might run away with all their money.

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Quote from: BartS on June 05, 2017, 05:55:25 PM

Quote from: PremiumCodeX on May 19, 2017, 03:35:01 PM

I have used bots some times and some of my friends are addicted to bots, I am just curious about this idea.

Why do not exchanges host the features in their own site as services,
why do they let 3rd party bots run instead of providing the possibilities themselves?

I think they don’t do it because some already have their suspicions about exchanges and then if for some reason the bot failed and then you lost money then someone may make the accusation that somehow that was not a technical problem but instead it was a scam.

As stated the reputation loss might take place for small technical issues of the bots. Also the bots usage will decrease the trading perspective and cause the decreased money flow, because it will be developed to function with limitations and AI bots haven't strikes the market yet.

nasibakar

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Quote from: BartS on June 05, 2017, 05:55:25 PM

Quote from: PremiumCodeX on May 19, 2017, 03:35:01 PM

I have used bots some times and some of my friends are addicted to bots, I am just curious about this idea.

Why do not exchanges host the features in their own site as services,
why do they let 3rd party bots run instead of providing the possibilities themselves?

I think they don’t do it because some already have their suspicions about exchanges and then if for some reason the bot failed and then you lost money then someone may make the accusation that somehow that was not a technical problem but instead it was a scam.

Yes, I agree about your point.
The most important to avoid such problem.
It is related with liability,... a trading platform will avoid to use or to have their own bots.

terrate

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Quote from: BartS on June 05, 2017, 05:55:25 PM

Quote from: PremiumCodeX on May 19, 2017, 03:35:01 PM

I have used bots some times and some of my friends are addicted to bots, I am just curious about this idea.

Why do not exchanges host the features in their own site as services,
why do they let 3rd party bots run instead of providing the possibilities themselves?

I think they don’t do it because some already have their suspicions about exchanges and then if for some reason the bot failed and then you lost money then someone may make the accusation that somehow that was not a technical problem but instead it was a scam.

and also if they want to create their own bots, they need to create and put some capital to produce the best bot.

so better they use third party one.

BartS

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Quote from: PremiumCodeX on May 19, 2017, 03:35:01 PM

I have used bots some times and some of my friends are addicted to bots, I am just curious about this idea.

Why do not exchanges host the features in their own site as services,
why do they let 3rd party bots run instead of providing the possibilities themselves?

I think they don’t do it because some already have their suspicions about exchanges and then if for some reason the bot failed and then you lost money then someone may make the accusation that somehow that was not a technical problem but instead it was a scam.

Kevin77

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Quote from: iluvpie60 on June 02, 2017, 08:55:18 AM

Exchanges likely do run bots that we cant access or do not know about. It would be easy for them because they can see total orders and do extra calculations based on the balance of users. They have more data suggesting what time.people buy and sell certain coins. Gox had an internal trading bot that drove up the price hard.

The bots you are taking about has nothing to do in trader's perspective. Not just exchanges, now a days all the business both physical and online businesses are developing bots to quicken some of their routine works. Now a days even a common man can have bots for his browser related routine stuff even if he has zero programming knowledge. I read few new exchanges are working on providing bot services as value added services. It will be their another income generation methods.

aTriz

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Quote from: PremiumCodeX on May 19, 2017, 03:35:01 PM

I have used bots some times and some of my friends are addicted to bots, I am just curious about this idea.

Why do not exchanges host the features in their own site as services,
why do they let 3rd party bots run instead of providing the possibilities themselves?

I know what you feel, I've been using bots in trading, gambling and in many other activities too, and I have to say that it is extremely exciting when something is being done fully automatic: it is just a great feeling when you dont have to do all of the work by yourself, and when some programme is helping you.
I have many friends that are "addicted" to bots, they just got used to it so they prefer to write their own, instead of using someones scripts.

Getting back to the question, I think it is because that no exchange actually wants to make their customers wealthier, it is really simple.
Still, I would prefer to trust some third party script than an exchange bot, because I have never seen any broker, company or crypto exchanges that actually wants to make their clients earn money.

iluvpie60

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I am pretty sure btce has a bot or at least the ability to connect to their api with your own bot.

Exchanges likely do run bots that we cant access or do not know about. It would be easy for them because they can see total orders and do extra calculations based on the balance of users. They have more data suggesting what time.people buy and sell certain coins. Gox had an internal trading bot that drove up the price hard.

ubercool

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As far as I have experienced, there are 2 problems with this scenario to happen.
1. If the bot works perfectly and users start making a profit with it, then the exchange will be making less profit as users will not be that accurate if the bot is good.
2. If the bot does not work properly and shows error frequently then the users will say that the exchange is running a bot which is making them rich.
Either way the exchange is going to loose money. Why should they run bots??

Fatanut

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Just like in gambling, if exchanges implement bots on their website, people are just going to use that bot always. If a bot strategy has been proven a good way to make money, then everyone's going to use it until it's no longer profitable. Another reason, exchanges make money from the fee for putting up a buy or sell order. For a 2% exchange fee, when somebody with 10BTC worth of buy order changes his mind and put that 10BTC to another coin, then they just earned 4% of the 10BTC from the fee alone. With the amount of exchange going on every day, their profit is already good.

Putting a bot for strategies can become a bad thing when it has caused trouble to the user since there will be scam accusations against the website which will ruin the site's reputation which they obviously don't want.

krisnt80

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Exchanges dont make bots due they dont wanna be attacked for any loss you might take, i do believe some exchanges has their own bots but not to public, soo the result being good or bad wont damage the users. Imagine you at poloniex with a bot and you loose 40000 dollars you will say that its exchange fault, besides that you would say they are manipulating the market to make you loose while they have profit.

ecnalubma

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Will in my opinion bots can't be trusted, it may fail for sure and if failure happens only human thinking can solve it. Thats why trading sites should be manage by people and not bots to escape future nightmare.

legarde23

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Well actually they have, their using bots in the coin they sponsored i read it on some blogs actually about exchanger they doesnt want us to knoe about it because million of traders will get angry.
they used bot manipulate the price of coin.

pinkflower

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Quote from: Idrisu on May 28, 2017, 11:46:42 AM

Though at poloniex you can configured they bot to suit your trading strategy, you should know that exchangers platform will also what to wash their hand incase of eventuality of loss so you will not began to called their customer care and blame them of being the reason why you loss in a trade places by bot.

Yeah but its not enough. It would be better to have something like the possibility to do simple scripting in the exchange like simple if, else scripts just so it knows what to do if the trades are missed because of the fast movement of the market.

Idrisu

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Though at poloniex you can configured they bot to suit your trading strategy, you should know that exchangers platform will also what to wash their hand incase of eventuality of loss so you will not began to called their customer care and blame them of being the reason why you loss in a trade places by bot.

Topic: Why don't exchanges run their own bots? (Read 1482 times)