Post
Topic
Board Trading Discussion
Re: Chrome Browser extension: MtGox trading bot
by
TobbeLino
on 10/05/2013, 18:19:01 UTC
You're right. That's just my emotions with the bot - I don't like to loose BTC Smiley I would prefer loosing fiat ...
So I'm going to do something about it.
I m going to make an emotional bet: "BTC will raise in long therm" - and in this case - I would prefer to stay on BTC than sell it too low.
So I think to myself: I'm going to implement an algo which will prevent my stupid bot  from selling bTC lower than they were bought Smiley
How do You think about it ?

Well, I know the feeling about wanting to improve the strategy Smiley But my experience is that it often results in less profit in the long run... There are some very smart people who have developed these strategies, and at least I am not good enough to improve them yet. I often think my bot is stupid, and sometimes it DOES make wrong decisions of course. But more often it's right in the end, and it turns out that it made a BETTER decision than I would have. The thing is that you would like to buy at the exact bottom, and sell at the exact top of every swing, but no bot (or human) can ever predict that (and if you try to achieve that, you would have to take too high risk and end up losing in the long run).

The problem with your argument that "it would be better to stay on BTC than selling too low" is that if you (or your bot) truly believes that the price will drop even lower in a moment, it's always smarter to sell now and buy again after some time. Your decision should always be based on "where the price is going" rather than "what the price is". And I think you're always better off trying to "forget" what you actually paid for your BTC when you bought it. The only thing that could make a diferece is the actual trading fees

But of course, there can be better strategies out there to discover and develop, so go for it! Smiley