Beware of exchanges using bots

[poncawarrior]

You know after my bitcoins went missing - the address withdrawn too is from china - - - and they know thats not my bitcoin address - ALSO at poloniex.com - I ran into bots - that would under cut my bids - each and every time - and after reading about OKcoin - I am wondering if this is the same a this place - with no security for verification of with drawing coins - a fact I can prove - I never got a with draw confirmation to my email - so If your at this place - you might want to be leary when you start losing bitcoins - on the exchange and or if your thinking of going to this place - BEWARE:::

I tried hard to stay out of the public dispute between OKCoin and Roger Ver,

Fake Volumes

I can confirm some of the above bots are designed to pump up volumes. During certain periods, these bots have also been used in a manner to create orders that will only trade against themselves, not with user orders. This mode of operations was strongly resisted by even Chen and Liu (programming, matching engine), but Star Xu insisted on executing it.

[investspot]

You know after my bitcoins went missing - the address withdrawn too is from china - - - and they know thats not my bitcoin address - ALSO at poloniex.com - I ran into bots - that would under cut my bids - each and every time - and after reading about OKcoin - I am wondering if this is the same a this place - with no security for verification of with drawing coins - a fact I can prove - I never got a with draw confirmation to my email - so If your at this place - you might want to be leary when you start losing bitcoins - on the exchange and or if your thinking of going to this place - BEWARE:::

I tried hard to stay out of the public dispute between OKCoin and Roger Ver,

Fake Volumes

I can confirm some of the above bots are designed to pump up volumes. During certain periods, these bots have also been used in a manner to create orders that will only trade against themselves, not with user orders. This mode of operations was strongly resisted by even Chen and Liu (programming, matching engine), but Star Xu insisted on executing it.

Thanks for the warning.

[Nagle]

Any idea what the non-bot transaction volume of Bitcoin is?

[maokoto]

Thanks for the info. Many tend to use several exchanges in order to get the best prices, and perhaps do not pay attention to every detail.

Warning received.

[allthingsluxury]

Thanks for the warning and the message. Appreciate it.

[Hugroll]

I've stopped using wallets and exchanges that doesnt let me hold the private keys. better safe than sorry

[RGBKey]

Although it's pretty malicious, it's to be expected. Whenever profit can be made off of someone else, it will be.

[kelsey]

this is news 


tons of private bots on exchanges as well.


tbh same stuff in real world markets.

[poeEDgar]

Algorithmic trading is nothing new and we will only see increased movement towards algorithms and away from manual trading. This is the trend in global markets, and bitcoin is no exception.

The Okcoin allegations refer to the exchange using "inside information" (commitment of traders, concentration of stop orders/margin calls, etc) to trade against their own customers. It has been alleged that they are using unbacked (naked) bots (think "Willybot") that were removed from the 2014 proof-of-reserves audit to do so.

[romjpn]

I've stopped using wallets and exchanges that doesnt let me hold the private keys. better safe than sorry

Could you please tell us what are those exchanges ? 

[tadakaluri]

Yes the Bitcoin Robot is a scam. I bought 10 bitcoins. I used the robot and it brought my bitcoin number down to 2.774 as it made more losing trades than winning trades. I turned it off when I realized what was happening.

This story is nothing but good news for Bitcoin Trading Exchanges. As the bot continues to trade on the open market, Bitcoin Exchanges will keep earning a commission. Bitcoin Exchanges collects a 0.2-0.5% fee on every trade.

Whether or not you decide to automate your trades, the basic rules apply: don’t trade more than you can afford to lose, and don’t go into any investment without at least a basic understanding of what you’re doing.

[RGBKey]

Yes the Bitcoin Robot is a scam. I bought 10 bitcoins. I used the robot and it brought my bitcoin number down to 2.774 as it made more losing trades than winning trades. I turned it off when I realized what was happening.

This story is nothing but good news for Bitcoin Trading Exchanges. As the bot continues to trade on the open market, Bitcoin Exchanges will keep earning a commission. Bitcoin Exchanges collects a 0.2-0.5% fee on every trade.

Whether or not you decide to automate your trades, the basic rules apply: don’t trade more than you can afford to lose, and don’t go into any investment without at least a basic understanding of what you’re doing.

This thread seems to be more about bots run by other people, that trade with themselves to drive up the price, not bots you run yourself.

[White sugar]

I think most exchanges have the option of don't allow withdraws using bots.

And there is no way to know if an exchange uses a price manipulation bot, so I think it is a safe bet say that all exchanges use

[NorrisK]

You will find bots on every exchange.. Whether they are doing anything good or bad, at least they provide a large amount of volume, which is good for the market.

[nagatlakshmi]

We need to avoid such type of Bitcoin Exchanges!! Otherwise we face trouble to our investment sooner or later.

[monsanto]

The Okcoin allegations refer to the exchange using "inside information" (commitment of traders, concentration of stop orders/margin calls, etc) to trade against their own customers.

This. It's is the wild west of finance so you should assume if it can be done to make money it will be done. The exchanges have all the information about order placement so they can do whatever they want.

[asad777]

thanks for the warning 
i was planning to use them

[S4VV4S]

The Okcoin allegations refer to the exchange using "inside information" (commitment of traders, concentration of stop orders/margin calls, etc) to trade against their own customers.

This. It's is the wild west of finance so you should assume if it can be done to make money it will be done. The exchanges have all the information about order placement so they can do whatever they want.

True, however I believe it's illegal.
But, without proof it's just accusations and nothing more.