Quote from: darkangel11 on April 13, 2018, 10:16:02 PM

A very descriptive and short explanation of bots. Nice job OP. What I might add is some disadvantages and risks.
There are numerous articles that summarise problems people encounter while using bots. If they were always making money nobody would choose active trading anymore, there would be only bots on every single exchange. Bots and newcomers who don't know how to set up a bot.

Here are the issues I ran into

The bot would make a buy order when there was a large dump in price (due to its simple algorithm that only saw price difference), and the sell order immediately after would never execute since the price stayed low for days or weeks.
No order would ever execute at profit margins higher than 0.6%, since better, more robust bots would always fill in those gaps before you. Binance is especially notorious for its various flavours of price manipulating cryptocurrency trading bots.
When orders did execute, Binances fees ate into the transaction. 0.1% fees (0.05% with BNB) meant that at the profit level I was forced to execute (<0.5%), fees made up a significant percentage. With the risk I was taking running such a basic strategy, it lead to me losing money more often than not. This problem wasnt so bad when the fees were reduced by 70% after the Binance outage.
The bot would often not be able to cancel its buy order in time, making me buy cryptocurrencies at higher prices than I would be able to sell at. This was either a loss that I had to eat by selling low (manually) or wait hours for the price to return. In some cases, it literally never returned and Im stuck holding some heavy bags (looking at you, Nano).
The combination of these problems meant that I couldnt keep this bot running 24×7. I usually ran into the above problems within 2 hours, in which I was lucky to make 0.05% profit. With low amounts (and if youre looking for free crypto bots, lets be honest, youre not a high roller), this becomes not worth it very quickly.

https://fynestuff.com/i-used-a-free-cryptocurrency-trading-bot-and-all-i-did-was-lose-money/

Merited You.