Post
Topic
Board Trading Discussion
Re: BOT TRADING
by
wxa7115
on 08/11/2020, 16:25:33 UTC
Copying someone else is not a very good idea in trading,

if enough people start copying a successful trade, you will almost always observe that such a trading methodology will lose its edge and profitability in the near future.

Same is true for algorithmic trading, no matter what your style is, you need to make sure as few as possible people on the planet can figure it out or imitate it...
Correct, now I am seeing that some platforms are including the option of copytrading, which is nothing more but a way to allow you to make the same movements of some of the biggest traders on the platform and this is a huge mistake, as for the most part they allow you to imitate the moment they buy but I do not see anything about the moment they sell which is half of the trade itself, also if I was one of those traders and I discovered that the platform I was using implemented this I will immediately leave it behind as someone smart could figure out my strategy and as you say I will lose my edge because of it.

In that case my answer to the OP is clear I will prefer a bot that trades with a strategy I devised myself, as trading with a commercial bot with a standard strategy has the same problem that I described above of the bot eventually losing its edge as more and more people use it.