Should trading bots be banned?

[counter]

I know their annoying but I think they have the ability to play a positive roll and don't think they should be banned because people misuse them.  There are times when I find I'm dealing with a bot that I'm able to make it do what I want it to do rather then vice versa but it just takes time to figure out what it is programmed to do and work around it obviously there are limitations to what I can do financially but generally speaking I tend to see bots as a nuisance more then anything else.

[oceans]

Some people find them annoying and the main reason for that is because they do get misused but I don't see why they should be banned just because a small minority misuse them, it's seems they can and do play a positive roll and maybe taking that away could leave us with negative effects.

[bluemountain]

Some people find them annoying and the main reason for that is because they do get misused but I don't see why they should be banned just because a small minority misuse them, it's seems they can and do play a positive roll and maybe taking that away could leave us with negative effects.

I don't understand how anyone would even know that someone is using a bot on an exchange, other then the exchange operator. I would also think that human traders would have an advantage over bots as they could potentially spot how they react to certain conditions and would know what they would do in the future if they have enough influence on the market.

[Sinecoin]

I mean bots are doing what people do but its just allows the trader to be afk, so i dont really see a problem with it.

[chilly2k]

Some people find them annoying and the main reason for that is because they do get misused but I don't see why they should be banned just because a small minority misuse them, it's seems they can and do play a positive roll and maybe taking that away could leave us with negative effects.

I don't understand how anyone would even know that someone is using a bot on an exchange, other then the exchange operator. I would also think that human traders would have an advantage over bots as they could potentially spot how they react to certain conditions and would know what they would do in the future if they have enough influence on the market.

    Find a slow market, with a wide buy to sell ratio.  Try to set a buy or sell order for 1 sat higher or lower then the highest.  If with in 30 seconds your no longer the highest, try it again.  see if you get beat out again.  wait 20-30 mins and try again.    If you get out bid again, then it most likely a bot.  People don't have the patience to watch a market that's not doing anything.  Bot's don't care.     

[Timetwister]

On bitcoin exchanges, such as Mt. Gox and Bitstamp, there are multiple bots that buy and sell bitcoins at the same time cluttering the markets and the rate of bitcoin. The purpose of these bots is to gain profit, so traders will get more more tempated to start to use some kind of homespun trading bot. What will we see in six months? War of bots, that rally the rate of bitcoin and make markets completely volatile? That defintely isn´t good for the arising bitcoin ecosystem. So if the bitcoin exchanges want to be trustful, the bots should be banned, or should they? 

What's wrong with them? Are you a ludite or what? They just do what humans would do, but they are much more productive. Volatility decreases when volume increases. Compare a penny stock's volatility with the SP500's.

[OmarBessa]

There's too many benefits from bots to consider banning them. The exchanges win from higher trading volumes, the traders win efficiency and everyone else enjoys greater liquidity.

[Timetwister]

There's too many benefits from bots to consider banning them. The exchanges win from higher trading volumes, the traders win efficiency and everyone else enjoys greater liquidity.

There's nothing bad about them, they just make life easier for those using them, for those that create them and for everyone else that is trading. Banning them has no sense.

[TinaK]

can't agree, bots is very useful for daytrade and arb, due to no one can string at the market 24h.

[TimeWatch]

On bitcoin exchanges, such as Mt. Gox and Bitstamp, there are multiple bots that buy and sell bitcoins at the same time cluttering the markets and the rate of bitcoin. The purpose of these bots is to gain profit, so traders will get more more tempated to start to use some kind of homespun trading bot. What will we see in six months? War of bots, that rally the rate of bitcoin and make markets completely volatile? That defintely isn´t good for the arising bitcoin ecosystem. So if the bitcoin exchanges want to be trustful, the bots should be banned, or should they? 

If they were banned I am sure the price is gonna fall down to the floor.

[Timetwister]

On bitcoin exchanges, such as Mt. Gox and Bitstamp, there are multiple bots that buy and sell bitcoins at the same time cluttering the markets and the rate of bitcoin. The purpose of these bots is to gain profit, so traders will get more more tempated to start to use some kind of homespun trading bot. What will we see in six months? War of bots, that rally the rate of bitcoin and make markets completely volatile? That defintely isn´t good for the arising bitcoin ecosystem. So if the bitcoin exchanges want to be trustful, the bots should be banned, or should they? 

If they were banned I am sure the price is gonna fall down to the floor.

And volatility would also increase a lot, as there would be less market orders, and therefore you would move the market by selling or buying smaller amounts of BTC than now.

[Sniper76]

Like already said, there is just one kind of bots which is useless : Those which make order without any objective to be filled.

Bittrex tried to do things against them, but they are still present.

Otherwise, i'm agree, bots are necessary for markets and exchanges, and a bot will be never stronger than a human brain. His unique advantage is to be operational 24/7, instead of human brain which need sleeping

[Karlchen]

Totally agree with the poster before me.

[grappa_barricata]

The whole argument is pointless. You can't separate a bot from any other software that is using the API. In fact, even disabling the API, a software can use the same interface of the user (what is behind the html ui, so to speak) to still place and cancel orders. Not to mention that automated or assisted trading is useful. Or do you want the arbitragers and the market makers to work by sending carrier pigeons? Finally, there is the thing that those that bash 'bots' and the like are always the ones that know nothing about them.