Trading algos/bots getting better?

[grodtyolo]

     
       Hello all, This is my first post here on BCT, so I hope I don't break any rules or stray away from the norms too far. I started trading last spring and have been doing decent up until the last month or so, maybe even a few months. I'm not sure if its just me getting sloppy or if its the trading bots/algos getting better. For example, no matter what it seems that whatever price I enter at it will always go above, and then below just enough for me to exit the position. The last 4 trades(long) I made, literally as soon as I exited my position the price stopped and reversed to go back up. I am wondering if the algorithms are getting better at knowing the average range people will exit when a trade doesnt go as anticipated. Also, Does anyone know how far the exchanges will go stop hunting? I got pulled out of a trade because I put my stop too close to support level which I will take as a lesson, but it really did piss me off being as the price NEVER even went down that far besides just to pull me out of my position.. btw that was on coinbase. Anyways, I haven't been trading very long and I don't trade all the time so I was just kind of wondering if these are common mistakes or if trading, in general, is getting harder and harder.

Regards

[1715210336]

1715210336

[1715210336]

1715210336

[mk4]

It's a safe assumption to think that trading algos, bots, or the top traders in general would just get better and better with time. Especially those at the literal top of the game such as 3 Arrows Capital and Alameda Research. Pretty much billionaires at the top of the game doing this stuff for a living.

As for your case, it's not going to be always because of good algos and the like. Sure it could be, but don't discount the fact that it could just be the classic volatility that's putting you out of your positions. Some or a lot of times, your trading decisions will simply not go in your favor, and you need to realize that. Blaming exchanges/algos is just a tinfoil hat excuse take in my opinion.

[Wexnident]

Algos are getting better, yes, since really, there's no way it could go backward tbh, most paths would only go one way, and that's forward. And honestly, what your problem isn't exactly the fault of bots all the time. Sure, sometimes, but all the time? Nah, it could just be a bad trade for you. It's not like it's a guarantee that whatever you trade is correct no? Learn to accept losses and probably stop using other reasons to blame what happened, doing that pretty much stops you from learning what's wrong and improving on yourself.

[davis196]

I got pulled out of a trade because I put my stop too close to support level which I will take as a lesson, but it really did piss me off being as the price NEVER even went down that far besides just to pull me out of my position.

This is pretty much your own mistake.I did the same mistake,when I started trading a few years ago.
It's really annoying,but I learned to never set my stop loss orders pretty close to the market price or the resistance level.Is trading getting harder?I don't think so,trading always has been hard and it isn't getting easier,especially if you are trading by yourself.
I don't trust trading bots or algorithms.They might be getting better with time,thanks to their developers,but putting all your trust in a bot and thinking that the bot/algorithm will do all the work for you seems pretty naive to me. 

[GreatArkansas]

(....) 
Also, Does anyone know how far the exchanges will go stop hunting? I got pulled out of a trade because I put my stop too close to support level which I will take as a lesson, but it really did piss me off being as the price NEVER even went down that far besides just to pull me out of my position..

Very rare case for a particular exchange will be the only reason of stop losses hunting, it could be always the market, but there some exchanges that sometimes dumped or pumped too hard but on the other exchange it didn't happen, but it will always on abrupt price action move.
This stop-loss hunting is kinda normal especially in cryptocurrency which is very volatile, so sticking with your risk: reward ratio or risk management is always good. It's kinda impossible to avoid, that's the one of disadvantages of using stop loss.

[Luzin]

Maybe about the technology it will get better, but you need to know the bot/algo setup is done by yourself. Nothing is purely automatic, so as far as my experience goes, I prefer to trade manually. Another reason is the high price of bots ,  this makes me unable to buy. Besides that, I am also afraid about the security of my account, because what I know is that the bot used must log in with your email and password. Please correct me if I'm wrong.

[Kanjeung]

your experience is almost similar to what I feel, I can't guess where the token/coin will stop above or below, I really don't understand about it. but judging from what you said, I don't think it's the fault of the bots or algos you're using, but the system you're using like that. when you experience continuous defeat, I hope you stop first and learn again. I have stopped trading, and want to stay away from such trading, because I don't have enough time to learn this trade. I better shut up and leave.

[grodtyolo]

         Sorry for the confusion, I am personally not using algos/bots. I meant the algos the exchanges use, and also the market makers strategies. To me it just seems they have really fine tuned ways to pull you out of your position.. or at least my ositions. But thanks for the feedback. I have managed to keep my trading account level, no major losses but no major gains either. So maybe I am not risking enough. Like I said, it seems everytime I get pulled out of a trade the market almost immediately reverses. My question from this point is this. If I set my stops at another 10% or so, will the market makers or algos find a way to go down 10% more? it just seems like I am constantly getting shaken out of my positions and when I started it wasnt like that.. or, maybe when I started the coins I was betting on were just on such a bullish trend that I avoided these things. It's starting to get sort of intimidating to me that my trades were so predictable, perhaps I should find some new trading plans altogether. Just wondering if anyone else feels this way, or if this is a common thing.

[slaman29]

It's a safe assumption to think that trading algos, bots, or the top traders in general would just get better and better with time. Especially those at the literal top of the game such as 3 Arrows Capital and Alameda Research. Pretty much billionaires at the top of the game doing this stuff for a living.

Never heard of these names before, but I've looked them up and they're pretty good I've to say.

The more mainstream ones like eToro have been around for so many years (but okay to be fair only recently in crypto) and they're so bad.

The worst are blockchain ones. You know the ones that supposedly use AI and big data and crowd intelligence. I've tried a few in the past and they always end up either very badly losing or break even but with so much effort and fees you just give up. I believe it's because they're mainly amateurs and devs, and not to the caliber of real billionaires.

Who of course will never share their algos.

[TimeTeller]

         Sorry for the confusion, I am personally not using algos/bots. I meant the algos the exchanges use, and also the market makers strategies. To me it just seems they have really fine tuned ways to pull you out of your position.. or at least my ositions. But thanks for the feedback. I have managed to keep my trading account level, no major losses but no major gains either. So maybe I am not risking enough. Like I said, it seems everytime I get pulled out of a trade the market almost immediately reverses. My question from this point is this. If I set my stops at another 10% or so, will the market makers or algos find a way to go down 10% more? it just seems like I am constantly getting shaken out of my positions and when I started it wasnt like that.. or, maybe when I started the coins I was betting on were just on such a bullish trend that I avoided these things. It's starting to get sort of intimidating to me that my trades were so predictable, perhaps I should find some new trading plans altogether. Just wondering if anyone else feels this way, or if this is a common thing.

What if try another exchange, and see if that kind of situation will happen to you again?
It is never wrong to try other exchanges out there, you may even find them helpful in your trading journey.
I am not saying that it is about the exchange, because more than likely the system will be the same to others.
But just to test yourself, and see where the possible cause/s of what you are experiencing with your trades.
It may be your strategy or their system, but at least have a lil experiment so you will learn more on this market.

[Dragonfund]

Honestly, working with a broker from Amarkets, I didn't even think about it. In my opinion, you can work without such algorithms or robots, and at the same time make a profit.

If all algorithm are so good as they are been programmed, believe me, no programmer will every sell them out but a bot is meant to work in a way of man and mistake can not be avoided.
The disadvantage of bot is that you cannot eliminate that mistake but as a man, you can easily snap out of any situation right before they happened, this is why I prefer to trade my self and be consistent with my strategy and also improve as the market sentiment changes.

[savetheFORUM]

Pionex is doing their own in-built one, maybe that would be doing better? Not because the bot itself is better but the reality is that they are doing it inside the exchange itself. This could be doing a lot better, bot that is a third party app could be developed a lot better but still fail because of the connection fail, plus it is certainly a lot easier for newbies to use something like that.

I personally never tried it but from what I hear it is quite easy to use. You have to decide if it is profitable or not and I am not going to suggest anyone anything about it, but I can tell you that the ease of use part is definitely looking good.

[palle11]

Well Op your worries are typical type of worry that traders and newbies complain about. You are doing the right thing by applying stop loss because if you don't you wake up to see margin call and your whole money is gone. Despite that market hit you out from your stop loss and reverse almost immediately to go back to chase the profit while you are already out, yes but keep to stop loss that's better to lose all.

You complain of setting your stop loss close to support, resistance or entry point, you don't have to adjust it beyond 1% of your capital. Remember if you adjust it far from it doesn't mean price won't get to it and take you out also. Trading professionally is to keep a watch on your money management.

Bots or no bots, IMO I believe there are good days for trade and bad days so don't expect profit all the days and I feel market will fail you at some point not working with your strategy.