Bitcoin Forum

There are alot bots for cryptotrading and they use classical technical analysis methods, indicators, parameters. Whales are trying to convince people to rise or fall according to their plan. But when it comes to bots it is easier to convince them. Because bots are generally using known methods and indicators whales can collect stats and triggers that bots like market is rising. This will allow a lot of bot to buy with their balance and after price reached a certain point that whale sees it is profitable all assets are sold to market and eve after profit  whale again sell more to fall back to its bottom target for to prepare another fake rise. Bots can be triggered for rise or fall. So we can not know when excatly this is happening but there are some clues at whales movements like angle of change and volume. Good luck with bots  :-*

Reason why people use bots is because bots unlike humans don't feel any greed or fear or emotion.

You can easily mimic your human trading into a bot that will always be up and will be super fast and won't make any user errors.

You can make alot of money on exchanges like Bitmex if you configure your bot to be an market maker where you collect the "maker" fees of 0.025%.

Issue is you need to be very good a programming, have a very good latency to the trading API server and for arbitrage need alot of BTC for capital to make it work.

you don't need others to use a bot in order to trigger something like a sell off.
for example when price falls obviously first those who set their bot to watch out and sell on a certain % loss (to "stop-loss") do the sale but the others will also follow as they see the fall. same with rising, the FOMO buyers and panic sellers are usually newbies who don't even know what a bot is. they do it manually.

First of all, most people use machines because you can use the strategy to deal, so high-frequency trading is a way of encryption money market to make money, if your strategy is good enough, you can achieve stable income.

The whole idea of having such bot is that you set a goal that can't be destroyed by human errors. So whatever you set for betting that is what will the bots performed. Unlike if you trade by your self and then get away with emotions then basically everything could went wrong for your trading journey

they do not like bots, they just want to play the price to get more money  ::)

I don't know if it is used in this way but it is very good a bot against bots, it is probably possible to manipulate other bots and make profit but that's not the main purpose of bots.

it will all come down to how big or small the market is and how risky this strategy of them is going to be. for example an altcoin which has a much thinner order books is easier to manipulate this way than bitcoin because despite what you think majority of traders are not using bots to trade bitcoin. specially since the swings in this market are unpredictable and big enough that makes it hard and sometimes near impossible to use automation.

I usually say that it is not a lot different than HTF used by banks. HTF are more developed, but at the end, the result is the same. Automated trading set up in a way to make a profit. Normal traders ( those with ethics) can hardly win the fight against HTF.
But I won't be surprised to read it's already used in the cryptos market