Post
Topic
Board Trading Discussion
Re: Can Crypto trading bot beat human intelligence?
by
TGA24
on 17/08/2019, 10:41:52 UTC
There are advantages and disadvantages over trading a bot vs human trading. I think it's a big subject all together actually.

For starters, arbitrage is popular in trading crypto, and for that, a bot is certainly better. If you only account for speed, there is no way a human can do it as fast as a bot. In that game, speed is everything. Also, don't forget human emotions get involved.  A trader could easily get into a crypto with the idea of arbing it and then decide to hold on to it a few extra minutes because 'it looks like its going up'. Next think you know, it tumbles and the 1% profit that was meant to be made has turned into a 5% loss.

While its true that there is the human touch involved in trading manually, most traders suffer terribly from making bad decision based on their emotions. Losing trades is inevitable and as humans we find it difficult to accept losses. Although that skill is very much a must to be a good trader.

The biggest pro i see to trading manually is being able to look at a variety of factors. You can look at correlation, how the general sentiment is, and make decisions based on that. The biggest downfall, as suggested above, is that emotions get in the way. This is especially true when a trader has a drawdown or a string of losses that start to really weigh in.