Ninjastic
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Board Trading Discussion
Re: Experience of using a cryptorobot
by
teosanru
on 28/04/2022, 18:57:29 UTC
Quote from: Silberman on April 25, 2022, 06:24:54 PM
Quote from: teosanru on April 22, 2022, 06:06:54 PM
Quote from: Sauv84 on April 17, 2022, 04:21:29 PM
Hi all  Smiley

Can you advise whether it is advisable to use a trading bot to trade cryptocurrency?
Such bots are sensitive to volatility, which often happens in the cryptocurrency world.
And how will the bot behave in a falling market?
I used one well-known bot for a month and it made 25% of my balance in a month.
And now I want to invest a lot more money in it.

Thanks
What I have seen from my experience is trading bots will always eventually run you into losses, especially the ones which are readymade available in the market, you will see them going well for a long time, and then suddenly you will see all your earnings getting wiped out in just one or two trades, this could be due to some bug in the code because these trading companies don't really put so much effort in getting the code audited from end to end. I have seen big companies making tons of money from cryptobots but they make money because they generally have their own trading bots which they get tailor-made from in-house coders only.
I do not think it is a bug, but rather the bots are coded that way, lets take for example the martingale system that is so popular among some gamblers, the martingale system can be attractive for some as it seems foolproof as you get your money back most of the time, but the more you play the higher the chances you eventually lose too many times and lose all your capital, does this sounds familiar? Because that is the way many bots trade, they use a system with a high accuracy and a money management strategy that gets more aggressive the more you lose, until you eventually lose too many trades in a row and then you lose everything as well.
Nice example of the martingale system. But I doubt one can code it, bots generally work on mathematics so if you have given it code to react in a particular way in particular condition it always will, so technically not can never be obeying that system, unless obviously the market itself behaves in such a way, but I think this thing can be solved by regularly updating code in your bot based on the changing dynamics of the market. But by the way we are here also not considering the probability of these bots actually being scam in the first place.