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Author Topic: Automated orders affecting price dip?  (Read 145 times)
tinopener (OP)
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February 23, 2021, 09:05:29 PM
 #1

To what extent would automated orders affect the current dynamic?

By automated order, I mean anything anything at all that didn't involve a human actively trading.
Wilhelm
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February 23, 2021, 09:23:03 PM
 #2

Traditional traders use a stop loss at 5-10% below the current price. A downward push of 20% can make all the stop losses pop and that cascades into an avalanche...

Leveraged traders use a multiplier which means they can get in a forced liquidation situation.

Going short can cause liquidation when price rises...

Many more of these killer events...

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February 23, 2021, 09:24:19 PM
 #3

Not to mention people using the same trading bots with the same configuration  Tongue Roll Eyes

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February 23, 2021, 09:24:35 PM
 #4

To what extent would automated orders affect the current dynamic?

By automated order, I mean anything anything at all that didn't involve a human actively trading.

Every trader could set their trading automatically, because there's an option to limit your sell. I don't think all traders could monitor their asset 24/7, and I guess they'll prefer to use that options to make their task more comfortable. Unless, they've been setting up a huge quantity of order and the frequency of individuals who've applied that strategy.
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February 23, 2021, 10:37:32 PM
 #5

Traditional traders use a stop loss at 5-10% below the current price. A downward push of 20% can make all the stop losses pop and that cascades into an avalanche...

Leveraged traders use a multiplier which means they can get in a forced liquidation situation.

Going short can cause liquidation when price rises...

Many more of these killer events...

This is true only for the margin trading stop-loss orders.

All perpetual contract futures, which have billions in daily volume, are trading 'on paper', and the avalanche would affect only the specific contract and for a short time. What could affect real trading is that many traders use futures contracts to indicate what will follow on margin/spot trading.

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February 25, 2021, 09:41:23 AM
 #6

To what extent would automated orders affect the current dynamic?

By automated order, I mean anything anything at all that didn't involve a human actively trading.
Most of "automated order" target speculation in the medium term, with resistance levels and spreads of around 4% to 6%.
I do not have accurate figures, but personally I do less than 10% for such trading, while 90% are done manually or in the long term.
Therefore, its effect will be by moving the price inside the resistance levels.

What affects the price are the big whales, who buy thousands of bitcoins every day.

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February 26, 2021, 06:44:18 AM
 #7

To what extent would automated orders affect the current dynamic?

By automated order, I mean anything anything at all that didn't involve a human actively trading.
Of course there is a chance that stop loss, shorts, trading bots and so forth plays a good role, for example there are sell orders that people sell at a lower level that is already in the exchanges, if it drops under a certain price people end up selling, that alone is really a lot, and buy orders that buys when the price goes down is already known and there for example, which means sellers would know how much would be required to crash the price.

Long story short basically if anyone wants to crash to price they know where to look at and what to look at and they can calculate how much is required to sell in order to drop the price to what price they want. Which gives those people some advantage, why? Because if you know how much exactly you would need to drop the price to exact number, you could use it to manipulate, sell some, drop it, and buy more in return.

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February 28, 2021, 08:26:41 AM
 #8

To what extent would automated orders affect the current dynamic?

By automated order, I mean anything anything at all that didn't involve a human actively trading.

Its 1995? Did i move back in time? In 2021 90% of exchanges traffic is made by automated orders. So all dynamic you see now is caused by automated orders. Starting from the biggest trafic makers - market makers ending on stop-losses, liquidations from retail investors. You should ask now ... how AI bots will affect current dynamics or how AMM markets with hudge liquidity affect current dynamics. Thats 2021 question.

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March 01, 2021, 10:40:42 PM
 #9


By automated order, I mean anything anything at all that didn't involve a human actively trading.

Putting an order while you are not there for it to have a trigger when price is there can also be an automated order and this is possible to affect price to deep or bull because traders can follow that to make order or not. I'm not a trader but I believe the range of your orders can make orders do an analysis of their trade and follow up if your having the same order as they.

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March 02, 2021, 06:51:55 AM
 #10

To what extent would automated orders affect the current dynamic?

By automated order, I mean anything anything at all that didn't involve a human actively trading.

Its 1995? Did i move back in time? In 2021 90% of exchanges traffic is made by automated orders. So all dynamic you see now is caused by automated orders. Starting from the biggest trafic makers - market makers ending on stop-losses, liquidations from retail investors. You should ask now ... how AI bots will affect current dynamics or how AMM markets with hudge liquidity affect current dynamics. Thats 2021 question.
Oh come on Cheesy Yeah I agree with you that "most" of them are automated as in it is 51%+ for sure but it can't be 95% is it? I mean I do not have the data so I can't say but I really really do hope that we are not just there, I hope that some of them are manual.

I have used trading bots as well but I have also traded myself as well, I probably traded more with the bot all around because it trades a lot during a short period of time, but the reality is that I have traded manually for a longer period of time and that is the thing for me, it is really something I rather to do when I can that is why I really like to keep doing this since I feel like I own the control of my own trading and that is why I feel like the 95% number looks a bit too much, it could definitely happen but I just happen to think that we should trade manually a bit more in order to gain a bit more control.

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March 02, 2021, 07:46:14 AM
 #11

To what extent would automated orders affect the current dynamic?

By automated order, I mean anything anything at all that didn't involve a human actively trading.
Any trader order which is made to sell then it is going to negatively affect the market price, so if more people are selling means price will dump more. Trading bots are usually made for that purpose but its not only the case with bots even stop loss can affect the prices in negatively.

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