Quote from: Omighty28 on August 18, 2018, 09:42:38 PM

Quote from: gondel on June 11, 2014, 02:05:21 PM

Hello,
I am reading everywhere that most of the trading bots are scam. Is that true? Is there somwhere any real bot which can be really profitable and should you have deep knowledge in trading and trading platforms to use it ?
Thank you all!
BR

Bots can manipulate crypto markets by artificially inflating the price. Their automated trading behavior leads new traders in cryptomarkets to overpay for the coins they are buying. The classic pump-and-dump scheme that was popular in the early nineties and made popular by the Wolf of Wall Street Jordan Belfort, is still being run effectivelly by bots in todays crypto markets. This scheme involves coordinated purchases of low-priced coin to pump the price and attract new investors who are easily excited by the increase. As investors unknowingly buy the pump, bots dump the asset in near perfect coordination. With no new buyers coming into the market, the coin quickly loses value and investors are left scratching their heads and agonizing over their wallets.

Unfortunately, this scenario plays out all too often in cryptocurrency markets. It can be extremely hard to detect where bots are at work without advanced analysis tools.Two of the biggest indicators of bot manipulation are price momentum and volume. If investors watch for these indicators to spot coordinated buy patterns early, they can avoid potential pump-and-dumps or flash crashes before they happen.
The people coding these bots usually stay pretty quiet about what theyre doing, but if you do your research on Reddit or Telegram, youll see people openly forming groups and teaming up to build bots. And if you dig deep into forums, in some cases youll find groups openly discussing price manipulation. The funny thing is that these individuals are often quite talented on the technical/programming side but lack the true financial know-how that could 2x, 3x even 4x their investments.