Topic: Why you should avoid trading bot (Read 376 times)

thanks for your comment . i want let you know that market direction is not only by TA analysis . there are factors that drive price to any given direction . bot are good but is not  what  you should depend on making critical decision on financial instrument trading . the banks and other financial institutes dont use Bot to trade financial instrument . secondly i will create your indulgence that you dont need to limit your trading knowledge only to crypto currency exchanges but also to other plafform such as forex platform where bitcoin , ethereum , ripple are listed as crypto asset instrument . these are the big institution that drives the price . if you follow up NASDAQ news recently you will discover that BTC and LTC have been listed among other stock . i hope l made some point to you .

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Trading bots are very risky to use, have a given task and cryptocurrencies are very dynamic so the bot is not able to speculate. When it comes to easy ways to earn money, it's cloudmining! For short-term investments there is no risk-free earnings.
Check Rockwall Investments or other cloud mining platforms

I think that you should know by now that trading bots based their decisions on technical analysis which a lot of members have pointed out already, and to tell you frankly I really don't think you know what you are talking about. Technical Analysis is basically the study of human behavior in charts as how they will decide which the market will move next it would automatically reflect on its charts. So if you think that trading bots don't know what humans do then think again. Next time when you are creating your own opinion at least make your facts straight or believable for other readers.

Trading risks aside, don't forget that 3rd party trading bots come with security risks as well. API keys are a powerful thing and if you're not careful you might end up like this guy:
https://bitcointalksearch.org/topic/my-fund-in-bittrex-unauthorised-withdrawal-without-2fa-code-5108921

Trading bots are only just useful for narrow price ranges. The funny thing about using scripts to do your trading, you may be in the bad side of the trade while your bot changes recommendation when prediction is untrue, like a reset button.

I think bot are mainly used for arbitage. Have you noticed  in an exchange the price of coin , even on different pair comes out same. You said bots do not have emotions or do not understand market sentiments. I guess this is good thing because you generally make loss in doing emotional trading.

Self trading is the reason (in some cases) that you'll lose some of your traded coins. Trading bot do help when you are busy in some other things. The op should read joniboini's reply about the bot, if the bot set correctly then it will surely follow what you set in your trading, buying price, selling price and the stop loss.

Well ever since I subscribed to a bot trading service I have noticed significant gains as compared to self trading.
First bot trading can act as yiyr deputy if you are the busy type also bot has no emotion once it target has been reach or it his stop loss it takes you out if trading immediately

Bots makes trade or arbitrage easier when they are used correctly. If it is controlled manually, calculating and applying will take plenty of time. But if it gets out of control, it will lose you money you can not imagine, so it is important to be careful.

first of all i never said bots are profitable! i don't know where you got that from.
i don't know what you have in mind when you say "sudden fundamental factors" but you should know that bots are not supposed to know everything and do everything. if they were capable of it, then nobody would have ever stopped using them and everyone would have been rich by trading with a bot!!!
as i said in my comment above, bots are meant mostly for automation of things that CAN BE AUTOMATED.

A bot can be as good or bad as a human. The difference there that a bot can trade 24/7.
It also can be a awesome companion just to keep a eye out on the markets.

If they are profitable why are institutional traders not making use of them. Have you taking statistics of those making use of bot to trade.. l am glad to let you know from my findings most  bots don't understand sudden fundamental factors

Bots, wash traders and order book manipulators are dominating the markets at the moment. You have to be able to recognise their activities, as they are designed to liquidate margin traders, and create fake break outs as far as I can see.

Trading bots are a collection of software algorithms that are selectable and parametrizable by the user, resulting in multiple logical combinations and limits that apply to the trades made on your behalf. Selecting the adequate algorithms and tweaking the parameters based both on your personal preferences and how you see the market evolve are part of the game play.
 
It’s going to run and trade for you, at a pace way faster than one can do himself, but that does not exempt one from necessarily being sharp to tweak it or even stop it during market abrupt changes.

Sometimes I was thinking about using a bot to trade, but after I check the market, I thought it would difficult to find a better strategy to use in that bot. The market still running to nowhere and we can not predict if it's the time to increase or decrease.

But I don't know with the bot from the dev that I found on here can give a profit or not because I don't use any bot to trade. I still prefer to use manual trading because I can directly check every coin, I can choose the right coins to buy, and the best is I can do trade by myself which I can get benefits from the trade itself.

It entirely depends on how you use and set up the bot. If you can set it right, TA can work quite well. Not every bot is a scam/broken, and I've personally used it before. Compared to manual trading, using a bot might be better if you love scalping and make profits daily (even though it is small).

There are two sides of the bot trading. Good and Bad. Yes, it can help us to trade with our technical analysis even I am out of pc. But all the time market don't go using technical analysis there are more issues like as economic news, political news and so. So, I think robot not good to use than manual trading.

Based on some of the information you've given, this title should be "Why you should avoid trading bot scams". The legitimate trading bots aren't being sold just for "pressing one button and making profit forever without doing anything" anyway. Legitimate trading bots are made to be modified and tweaked by the trader. Legitimate trading bots are just used to make the lives of traders easier by automating some of the stuff.

most of the reasons you posted here don't even make any sense regarding your title.

the only thing about bots that you should know is that they are not artificial intelligence to be able to do your job. the only thing they can do is basically automation and speed by running some trading script/strategy. and the only reason newbies should avoid them is because they wouldn't know what to do. you first have to learn how to trade and make profit on your own then use a bot to improve your stats not to do everything for you.

Trading bot uses technical analysis, which might work depending on which coins that you choose. Even human also use TA. In this sense, a bot should be better than human (as long as the parameter/indicator is set correctly).


What you're talking about is basically fundamental changes, which as you said, is not detectable by bot which mostly use TA.


Depends on what bot that you choose. In theory, any program is perfect before you found the bug.


Not really, open source bot depends on how you set it up.


If you're doing day trading, it's just the same thing. You can run your trading bot on VPS if you want.

Trading bot are authomatic algorithm settings built by affiliate marketers that allows your computer to trade for you even when your off pc

We had enumorous amount of individual joining the crypto world 2017 when there was remarkable bull market .
Many lost there portfolio during 2018 due to high predictions of bitcoin  to hit 5Ok . Many predicted also with their bot.which lead to these losses.

Why you must avoid trading bot.
1.The market Is not control by bot but traders who are humans who place orders.

2.Emotional sentiment by traders can drive the direction of the price which the bot might not detect.

3. Crypto news channel also drives the fluctuation the price such as the sudden announcement of ban of crypto asset by China or any other countries.

4.Bot are not perfect and can be malfunction due to virus in your PC.

5.They can only be used by the developers successfully

6. Consuming more electrical energy and internet data because you must leave the PC on continuously.

Note that if trading bot are actually making profit as many a times most bot developers claim why are they selling it  since the market capitalization is more than 133billions of dollars as of today.The bot should have accumulated all the billions in the market to their portfolio . And the traditional  banks would have been making use of these bot to trade both Fiat and crypto asset.

So in my opinion these bot does not worth investing cryptographic money into .

These are my thought why you should avoid trading bot if you have any reason why you should avoid trading bot please share your experience to enlighten members of the forum.