All you need to know about trading bots

[dongamk]

I have been seeing the same questions asked many times on the boards, so I figured why not put them in one place. As we see more we can add to it, feel free to ask questions as well and we will see if we can get answers.

Why do people create bots in the first place?
Its obvious that people don't want to be staring at charts and trying to figure out the best time to buy and sell. Sometimes, it is also used to save transaction fees. In short, it for simplicity. Well, purpose may vary from creator to creator.

How do the bots work?
Each bot is set of indicators and parameters that when all align will make a buy or sell signal, telling the exchange of your choice to execute a trade. Most of the time a bot is tuned for a specific market and time period, this is the creator's best educated guess on how the market will work in the future. It is not a magic crystal ball that will make perfect trades every time.

How long will it take to get rich using the bots?
If there was an easy way to get rich off bots and altcoins, don't you think there would be more stories out there about it? The better question is...

What should I expect as profit?
Depending on the time frame and what your bot is looking for you could make a lot, or loose some. This is after all a free market and not a bank. There are large unknowns when dealing with markets, any number of influences can trigger a rise or fall. Most bots will be a better strategy than a buy and hold method and as long as you believe your choice of altcoin will go up, then you will likely make a profit. Sometimes a bot is used to help reduce lost, not just make profit.

If a bot is not preforming the way you think you can always change bots or pause the bot and make a manual trade and then turn the bot back on when it is in sync with your choice.

Why use a bot at all?
There are many reasons why you would use a bot. Maybe you are an inexperienced trader and are looking for a way to get into trading, maybe you want someone watching over your account while you are away or asleep, maybe you don't need the stress of staring at monitors all day and want a rational less emotional way of trading.

Why doesn't my bot buy/sell at the lowest/highest?
Most importantly the bots are not always checking to buy or sell, they have a period of time where they wait and it is likely that which ever peak or valley doesn't happen right when the bot checks. Plus even if it was the highest or lowest how would the bot know? All bots are looking for specific conditions to trade on and in most cases it will execute after it the high or low.

This is the holy grail of bot trading, not just for altcoins, but for all markets. There are large computers with well paid designers trying to create these kinds of bots.

Why does one bot buy/sell but another doesn't?
Different bots are designed and tuned to do different things. Of course they are going to react differently to the market. -cryptotrader

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[rayk]

I think bots are really great and there are many ways for daily profits but I have no time for trading, trading needs lots of time. Traders have probably lots of free time.

[darkangel11]

A very descriptive and short explanation of bots. Nice job OP. What I might add is some disadvantages and risks.
There are numerous articles that summarise problems people encounter while using bots. If they were always making money nobody would choose active trading anymore, there would be only bots on every single exchange. Bots and newcomers who don't know how to set up a bot.

Here are the issues I ran into

The bot would make a buy order when there was a large dump in price (due to its simple algorithm that only saw price difference), and the sell order immediately after would never execute since the price stayed low for days or weeks.
No order would ever execute at profit margins higher than 0.6%, since better, more robust bots would always fill in those gaps before you. Binance is especially notorious for its various flavours of price manipulating cryptocurrency trading bots.
When orders did execute, Binance’s fees ate into the transaction. 0.1% fees (0.05% with BNB) meant that at the profit level I was forced to execute (<0.5%), fees made up a significant percentage. With the risk I was taking running such a basic strategy, it lead to me losing money more often than not. This problem wasn’t so bad when the fees were reduced by 70% after the Binance outage.
The bot would often not be able to cancel its buy order in time, making me buy cryptocurrencies at higher prices than I would be able to sell at. This was either a loss that I had to eat by selling low (manually) or wait hours for the price to return. In some cases, it literally never returned and I’m stuck holding some heavy bags (looking at you, Nano).
The combination of these problems meant that I couldn’t keep this bot running 24×7. I usually ran into the above problems within 2 hours, in which I was lucky to make 0.05% profit. With low amounts (and if you’re looking for free crypto bots, let’s be honest, you’re not a high roller), this becomes not worth it very quickly.


https://fynestuff.com/i-used-a-free-cryptocurrency-trading-bot-and-all-i-did-was-lose-money/

[b3llsf1l3s]

why sell a bots if the owner / creator used it to gain all whole profit into it ? 

*if i have a recipe of making a greatest taste of pizza and coffe, im sure im not gonna sell it to other people

[Tynovten_]

Most of that interested on bot they're that newbie and they're that lazy.

Right now bot are available with intention and purpose of their respective. If you're not careful you'll stuck on the wrong bot and make you loss.

Bot only show the result, it doesn't show the ordinance just like how it get.

[jjklondi521]

OP, can you advise some kind of trading bot marketplace/platforms?

[Dart18]

There is one story here that I have read about.
But it is a negative one which is his fault.
He did a mistake into the input of the bot, end up buying high offers and selling low. It is like he did it in reverse.

Manual trading is still my forte. But this bots helps to make the trade active so I am not against it. I think this should be for pros. Will not be good if you have no knowledge about it.
So I guess those who want to start bots should read this.

[Sanjeewa101]

The trading bots are good but We should not rely always on the bot. Bot signals can use for taking the good trading idea.

[Pursuer]

Why use a bot at all?
Maybe you are an inexperienced trader and are looking for a way to get into trading,

this is not a reason to use a bot at all. in fact this is the worst reason that anyone would want to buy and use a bot. it is common knowledge that you first need to learn how to trade on your own, gain that mandatory experience in trading and then to improve your successful outcome which you already have, you use a bot. you see the bot is for the improvement and making things easier, or enhance everything you were already doing not to do what you had no idea about!

[Koro-Sensei]

Why use a bot at all?
Maybe you are an inexperienced trader and are looking for a way to get into trading,

this is not a reason to use a bot at all. in fact this is the worst reason that anyone would want to buy and use a bot. it is common knowledge that you first need to learn how to trade on your own, gain that mandatory experience in trading and then to improve your successful outcome which you already have, you use a bot. you see the bot is for the improvement and making things easier, or enhance everything you were already doing not to do what you had no idea about!

Yeah nothing beats an acquired human knowledge than to rely on bots that has limited uses. Human mind can take so many at once but not comprehends quickly though if reminded enough we can tackle that memory and apply it in a similar situation. Relying on bots is not as good as you think OP.

[hurry_hore]

Common trading bot can be used in the common market, there is no big effect of FUD (some other called news) then the trader should check this kind of FUD. If there is big FUD, I think it is better to non active the bot then trade manually except if you have sophisticated bot with A.I technology which can learn as like human.

[dongamk]

A very descriptive and short explanation of bots. Nice job OP. What I might add is some disadvantages and risks.
There are numerous articles that summarise problems people encounter while using bots. If they were always making money nobody would choose active trading anymore, there would be only bots on every single exchange. Bots and newcomers who don't know how to set up a bot.

Here are the issues I ran into

The bot would make a buy order when there was a large dump in price (due to its simple algorithm that only saw price difference), and the sell order immediately after would never execute since the price stayed low for days or weeks.
No order would ever execute at profit margins higher than 0.6%, since better, more robust bots would always fill in those gaps before you. Binance is especially notorious for its various flavours of price manipulating cryptocurrency trading bots.
When orders did execute, Binance’s fees ate into the transaction. 0.1% fees (0.05% with BNB) meant that at the profit level I was forced to execute (<0.5%), fees made up a significant percentage. With the risk I was taking running such a basic strategy, it lead to me losing money more often than not. This problem wasn’t so bad when the fees were reduced by 70% after the Binance outage.
The bot would often not be able to cancel its buy order in time, making me buy cryptocurrencies at higher prices than I would be able to sell at. This was either a loss that I had to eat by selling low (manually) or wait hours for the price to return. In some cases, it literally never returned and I’m stuck holding some heavy bags (looking at you, Nano).
The combination of these problems meant that I couldn’t keep this bot running 24×7. I usually ran into the above problems within 2 hours, in which I was lucky to make 0.05% profit. With low amounts (and if you’re looking for free crypto bots, let’s be honest, you’re not a high roller), this becomes not worth it very quickly.


https://fynestuff.com/i-used-a-free-cryptocurrency-trading-bot-and-all-i-did-was-lose-money/

Merited You.

[Nekrasova]

Really good info, thanks

[herurist]

I have been seeing the same questions asked many times on the boards, so I figured why not put them in one place. As we see more we can add to it, feel free to ask questions as well and we will see if we can get answers.

Why do people create bots in the first place?
Its obvious that people don't want to be staring at charts and trying to figure out the best time to buy and sell. Sometimes, it is also used to save transaction fees. In short, it for simplicity. Well, purpose may vary from creator to creator.

How do the bots work?
Each bot is set of indicators and parameters that when all align will make a buy or sell signal, telling the exchange of your choice to execute a trade. Most of the time a bot is tuned for a specific market and time period, this is the creator's best educated guess on how the market will work in the future. It is not a magic crystal ball that will make perfect trades every time.

How long will it take to get rich using the bots?
If there was an easy way to get rich off bots and altcoins, don't you think there would be more stories out there about it? The better question is...

What should I expect as profit?
Depending on the time frame and what your bot is looking for you could make a lot, or loose some. This is after all a free market and not a bank. There are large unknowns when dealing with markets, any number of influences can trigger a rise or fall. Most bots will be a better strategy than a buy and hold method and as long as you believe your choice of altcoin will go up, then you will likely make a profit. Sometimes a bot is used to help reduce lost, not just make profit.

If a bot is not preforming the way you think you can always change bots or pause the bot and make a manual trade and then turn the bot back on when it is in sync with your choice.

Why use a bot at all?
There are many reasons why you would use a bot. Maybe you are an inexperienced trader and are looking for a way to get into trading, maybe you want someone watching over your account while you are away or asleep, maybe you don't need the stress of staring at monitors all day and want a rational less emotional way of trading.

Why doesn't my bot buy/sell at the lowest/highest?
Most importantly the bots are not always checking to buy or sell, they have a period of time where they wait and it is likely that which ever peak or valley doesn't happen right when the bot checks. Plus even if it was the highest or lowest how would the bot know? All bots are looking for specific conditions to trade on and in most cases it will execute after it the high or low.

This is the holy grail of bot trading, not just for altcoins, but for all markets. There are large computers with well paid designers trying to create these kinds of bots.

Why does one bot buy/sell but another doesn't?
Different bots are designed and tuned to do different things. Of course they are going to react differently to the market. -cryptotrader

I'm not trust bot any more even some people say it will profitable in any condition with out loss. Using bot it will not make you find the best strategy and character you need to face real market risk. Market is not just mathematics but also an art, bot can't do that. Trust me and leave bot forever.

[vincentong17]

I don't trust bots but some bots could give you profit some are not. Depends on the criteria and it applies to Forex trading but here in cryptocurrency i'm not sure if it's worth it better buy some coins that are great for holdings and sell afterwards. Goodluck buddy!

[malikusama]

How long will it take to get rich using the bots?

Bots are not that intelligent and they can’t put extra efforts to gain maximum through trading, they have constant parameters this means they have limited ability, if someone is really worry about to become rich quickly it would be better for him/her to trade manually without using bots.

[darkangel11]

Merited You.

Thanks. I'm not going to return the favor here, because this is not why the purpose of the system, but keep making nice threads and I will try to remember about you.

I recently watched a youtube video of a guy who has experience with bots and he said that it usually takes over over 100 hours of coding to make a reliable bot that will actually make some profit and every bot has to be personalized to trade at your parameters (coin, exchange, trade amounts, trade levels, have answers ready for sudden spikes up and down). If any of you got some nice profit from a bot share your thoughts.

[bitcub]

I found out that bots are not really profitable to use.  Bots are very dependent on chart patterns and market indicators. Apart from it,  it cannot detect news signals for example: fud,  or fake news like death of vitalik. Bots are good if you just use it as guide.

I have been seeing the same questions asked many times on the boards, so I figured why not put them in one place. As we see more we can add to it, feel free to ask questions as well and we will see if we can get answers.

Why do people create bots in the first place?
Its obvious that people don't want to be staring at charts and trying to figure out the best time to buy and sell. Sometimes, it is also used to save transaction fees. In short, it for simplicity. Well, purpose may vary from creator to creator.

How do the bots work?
Each bot is set of indicators and parameters that when all align will make a buy or sell signal, telling the exchange of your choice to execute a trade. Most of the time a bot is tuned for a specific market and time period, this is the creator's best educated guess on how the market will work in the future. It is not a magic crystal ball that will make perfect trades every time.

How long will it take to get rich using the bots?
If there was an easy way to get rich off bots and altcoins, don't you think there would be more stories out there about it? The better question is...

What should I expect as profit?
Depending on the time frame and what your bot is looking for you could make a lot, or loose some. This is after all a free market and not a bank. There are large unknowns when dealing with markets, any number of influences can trigger a rise or fall. Most bots will be a better strategy than a buy and hold method and as long as you believe your choice of altcoin will go up, then you will likely make a profit. Sometimes a bot is used to help reduce lost, not just make profit.

If a bot is not preforming the way you think you can always change bots or pause the bot and make a manual trade and then turn the bot back on when it is in sync with your choice.

Why use a bot at all?
There are many reasons why you would use a bot. Maybe you are an inexperienced trader and are looking for a way to get into trading, maybe you want someone watching over your account while you are away or asleep, maybe you don't need the stress of staring at monitors all day and want a rational less emotional way of trading.

Why doesn't my bot buy/sell at the lowest/highest?
Most importantly the bots are not always checking to buy or sell, they have a period of time where they wait and it is likely that which ever peak or valley doesn't happen right when the bot checks. Plus even if it was the highest or lowest how would the bot know? All bots are looking for specific conditions to trade on and in most cases it will execute after it the high or low.

This is the holy grail of bot trading, not just for altcoins, but for all markets. There are large computers with well paid designers trying to create these kinds of bots.

Why does one bot buy/sell but another doesn't?
Different bots are designed and tuned to do different things. Of course they are going to react differently to the market. -cryptotrader

[Oilacris]

I found out that bots are not really profitable to use.  Bots are very dependent on chart patterns and market indicators. Apart from it,  it cannot detect news signals for example: fud,  or fake news like death of vitalik. Bots are good if you just use it as guide.

Bots are not guide but totally an automation of your trades which means you would need to set-it up before it would be functional.Some people do have different insights when we are talking trading bots which usually comes to their minds that it can generate easy profits to them without minding the true purpose of those bots. This is always been a wrong perception upto now these days.

[Scallywag]

why sell a bots if the owner / creator used it to gain all whole profit into it ? 

*if i have a recipe of making a greatest taste of pizza and coffe, im sure im not gonna sell it to other people

you are right. all you need to know about trading bots is this: if you can't build your own don't even think about it. if you buy one you have no idea what you are buying first of all, second of all it is very hard to run it if you don't exactly know how it works.