Bot trading domination: Time to panic?

[cheezcarls]

Algorithms and bot-trading have taken over Wall Street and the cryptocurrency market with no sign of slowing down. Analysts say everyday traders should be terrified of the coming decade.

Everyone in the cryptocurrency industry complains of bots ‘manipulating’ prices, but this will likely end up being even more severe during the 2020s.

In the past decade, we’ve seen some wild swings in prices, both among regular assets and cryptocurrencies. It’s primarily been due to algorithmic robots, but their effect will only be stronger in the coming years. The end result will be that successfully trading the market will be even more difficult.

Read the full news here

Analysts claimed that bot-trading may possibly dominate in the 2020's, do you think it is time for traders like us to panic now?

If they do what we feared the most, it would likely manipulate the prices of Bitcoin and other cryptocurrencies as "wild swings" occur and may get even worse in more years to come.

Do you think we should be worried by this in the next few years of this decade? Let me know your reactions or thoughts about this one guys.

Thanks!

[Harlot]

If it is something out of control like what the article is speaking of about how it manipulates prices aside from making their users profit then I think the authorities have no choice but to intervene with such trading bots and make some kind of regulation or maybe worst like a total ban of trading bots to remove the danger of it affecting the market. Hopefully it doesn't reach to that point that trading bots will be affected but if they have a considerable increase of users in the future I think it will be inevitable for them to somehow affect the market because of the capital they have overall.

[MURONDI]

sometimes bot users are very annoying, when we make orders often bots overtake us so that our orders are difficult to execute, Actually there is nothing to worry about, I am sure in the future the exchange will innovate, now even many exchanges have adopted the forex system, has always been a lot of bots in forex trading, but until now forex traders are still fine and there are no problems.

[sisule]

Bot trading try to make many people panic for buying and panic for selling their assets, when we are looking buy and selling history most active in exchange market I think there are many active investor buy or sell their assets, but look far away only with bot trading try to make sense and panic with many investor, I think not have hurry when looking bitcoin have higher price to buy because maybe just trip for investing.

[adroitful_one]

sometimes bot users are very annoying, when we make orders often bots overtake us so that our orders are difficult to execute, Actually there is nothing to worry about, I am sure in the future the exchange will innovate, now even many exchanges have adopted the forex system, has always been a lot of bots in forex trading, but until now forex traders are still fine and there are no problems.

This is something that has never really bothered me too much. Whenever someone puts up a sell order for cheaper than me, I usually just laugh because I know it will fill eventually and I'll have made more money than if I tried to outbid him. Price fluctuations usually make it where the first order you placed will more than likely fill anyways. I don't think these bots are anything to worry about really. There's not much difference whether a human was making a trade or a machine.

[Wexnident]

Well, cant really blame those bot users. It's pretty much the age of technology and improvement of the algorithms just proves that they could provide more profit for their owners, which I mean, no one would refuse that now, would they? Although the improvement is quite fast, I doubt that we need to panic over it. Maybe after 5 years or so, the development of bots would then be unstoppable since A.I. development would have made some thorough progress, but as of yet? I doubt that.

Though once the development has been made, Exchanges need to manage the securities of their trades, one way or another, to prevent the possible manipulation done by the bots, which is honestly not an easy feat. But I suppose with time, they should be able to manage a way through that.

[EdvinZ]

Perhaps day traders will really become more difficult to trade due to the increase in the number and quality of trading bots. But those who invest in an asset for the medium or long term can not be afraid of the activity of bots. Because such investors do not compete with trading bots, but compete with the same people investing in the same asset.

[maydna]

We don't need to panic to see the bot trading dominating the market because I am sure that we can beat the bot, especially if we can improve our skills in trading. The bot cannot think as human, and the bot runs with the command that we write to the bot, and if the market is moving to any price level, the bot is not always can follow the market. So at this moment, we need to learn more and more so we can have a chance to make a profit from the bot. I am sure that we can do that because we can make another strategy if the market is not moving as we want.

[danherbias07]

I dont understand much about bot trading since I havent tried it but I can see it happen with other exchange.

Your own order being neglected even if your price is cheaper than the one being run by the bot.
I don't really care much about it.
Why? It ain't that easy to make it work perfectly. It needs a lot of testing which might also lose you some money.

[ashmodeus]

We don't need to panic to see the bot trading dominating the market because I am sure that we can beat the bot, especially if we can improve our skills in trading. The bot cannot think as human, and the bot runs with the command that we write to the bot, and if the market is moving to any price level, the bot is not always can follow the market. So at this moment, we need to learn more and more so we can have a chance to make a profit from the bot. I am sure that we can do that because we can make another strategy if the market is not moving as we want.

you sure by what ?
just a bullshit for me.
bot make a action by system,and system never make a wrong action,of course that will happen if you don't systemize it properly.
human, have a emotion,which can make wrong actions.
for now,maybe a few people can beat the system, but as the time goes, bots always improving their skill,always buddy.

[Joyawan13]

We don't need to panic to see the bot trading dominating the market because I am sure that we can beat the bot, especially if we can improve our skills in trading. The bot cannot think as human, and the bot runs with the command that we write to the bot, and if the market is moving to any price level, the bot is not always can follow the market. So at this moment, we need to learn more and more so we can have a chance to make a profit from the bot. I am sure that we can do that because we can make another strategy if the market is not moving as we want.

you sure by what ?
just a bullshit for me.
bot make a action by system,and system never make a wrong action,of course that will happen if you don't systemize it properly.
human, have a emotion,which can make wrong actions.
for now,maybe a few people can beat the system, but as the time goes, bots always improving their skill,always buddy.

I agree with you, and whatever people say about the future price of crypto and what will happen in the market, I will keep trading my day, and I'm not afraid of anything that will happen, because I still have predictions that the market will be able to return recover again and the price of crypto will be able to grow and raise the price again in the future.

[The Sceptical Chymist]

do you think it is time for traders like us to panic now?

I think I'm going to calmly choose not to panic, but I'll retain the option to do so at a later date perhaps.  lol

Not that I consider myself a trader anyway.  I'm not looking to make a quick buck with crypto or stocks or anything else.  I tried trading briefly and found that it didn't mesh well with my nervous constitution, so I gave it up and stuck with the buy-and-hold philosophy.  Not sure what these bots are all about, but are they really doing any damage to the market?  Because I don't think they're anything new.  Even back in the 1980s there were "programmed trades" going on, which is what people thought caused the 1987 stock market crash in October of that year.

Anyway, I've bought some altcoins on exchanges over the past few years and my orders always got filled and I never had an issue with the price they got executed at, so I don't think this issue is going to bother me all that much.

[exstasie]

Analysts claimed that bot-trading may possibly dominate in the 2020's, do you think it is time for traders like us to panic now?

HFT algorithms have already dominated conventional markets for years. No need to panic. What you need to do is zoom out. Stop trading the intraday charts, the minute and hour charts. I recommend analyzing the weekly/daily time frames for trade setups and maybe using the 4-hour for entries.

Higher time frames have a much better noise-to-signal ratio. Focusing on the 15-minute chart is a sure way to get chopped up by the bots.

[BuxCoin]

bot trading will cause crazy volatile  swings they spoil everything for even small profits and traders like us must only sit and see losing our money i had this question in my mind from long time , bot trading should not be encouraged at all 

[panganib999]

Hasn't it been always as such? The only reason bots aren't that used by entry traders is because they lack the knowledge of determining whether the bot is actually doing its work or not. There's also taking into account that using bots requires you to trust its creator, which is pretty risky imo. Only self-made bots are actually trust worthy, and since some don't know how to make them, they lack the avenue to actually try them out.

As for possible wild swings, every now and then may be possible but it shouldn't affect the market in the long term. Like, traders using bots are also traders, having large swings like that is only detrimental to them as well. It defeats the purpose of letting the market grow so that they can profit from it as well.

[Reid]

We should be more worried about more exchange closing down. This ain't a lifetime feat right?

Not all are making profits thru bot trading. We could see that here right? Many bitcointalk users are still asking how to set it up and most of them have stories of losses behind the reason of how to do it.
It might sound easy when we see it being run at one exchange but I don't prefer it.

The old times might be gone but there are still who can make money (a lot) thru just monitoring it and orders being secured with their bare eyes.

[Mahanton]

Analysts claimed that bot-trading may possibly dominate in the 2020's, do you think it is time for traders like us to panic now?

HFT algorithms have already dominated conventional markets for years. No need to panic. What you need to do is zoom out. Stop trading the intraday charts, the minute and hour charts. I recommend analyzing the weekly/daily time frames for trade setups and maybe using the 4-hour for entries.

Higher time frames have a much better noise-to-signal ratio. Focusing on the 15-minute chart is a sure way to get chopped up by the bots.

For Bigger TF then it would be less likely to be burned out by bots yet most of them would really set it up on lower time frames.

But we know that they would really tend to hive on short ones due to active movements which bots are really suit out.If you do trade manually on
these frames then expect that your trading against bot.

[adroitful_one]

We should be more worried about more exchange closing down. This ain't a lifetime feat right?

Not all are making profits thru bot trading. We could see that here right? Many bitcointalk users are still asking how to set it up and most of them have stories of losses behind the reason of how to do it.
It might sound easy when we see it being run at one exchange but I don't prefer it.

The old times might be gone but there are still who can make money (a lot) thru just monitoring it and orders being secured with their bare eyes.

I don't think that the smaller exchanges that are at risk of closing down soon really have a bot problem. I think most people that run bots do so on the bigger exchanges with more volume. If there were hundreds of bots on there, they wouldn't have a problem making enough money to stay open. Bots are just a part of trading. They don't bother me even one bit. In fact, I appreciate the volume that they bring to some of these places.

[salad daging]

only panic if the bot algorithm succeeds with an AI precision ratio of 90% and is stable in generating profits in all conditions, if it's like this then not only traders are disturbed, the exchange will also start to make some improvements to get rid of it. There is no meaningful panic, but the trend will change where traders will prefer exchanges with lower bot activity.

[wajik-tempe]

only panic if the bot algorithm succeeds with an AI precision ratio of 90% and is stable in generating profits in all conditions, if it's like this then not only traders are disturbed, the exchange will also start to make some improvements to get rid of it. There is no meaningful panic, but the trend will change where traders will prefer exchanges with lower bot activity.

There will be no such bot since the market is so dynamically change and i'm sure there are no algorith that able to cover all the market movement, if it's really happen, it won't happen more than 3 times in a row but luck.