Trading bots... do they work?

[tygeade]

I definitely don't use a trading bots because I tried it once before and unfortunately I learned that it didn't really provide profits. Although there are various trading bots and each of them is of better quality than the others unfortunately it isn't possible to say that none of them work perfectly. The trading bot I used made many erroneous transactions, entering SL and TP orders at values ​​like 0.02% causing many positions to be closed immediately when opened and most importantly it was trading between stable cryptocurrency pairs in case the transaction volume increased between them. In addition, during certain periods these trading bots were opening reverse transactions due to the transaction volume in many cryptocurrency pairs which caused losses for no reason. So, I definitely don't prefer using trading bots because many trading bots don't work stably and can be easily deceived. Also, I don't recommend it.

Finally, although the option may vary depending on the preferred trading bot such algorithms generally request permission to perform various transactions on your exchange account. In other words, considering that there are various possibilities such as transferring the balance in your wallet to another wallet even though it doesn't appear in the permission list. There is also the risk of losing the entire capital with the aim of capital growth. Although this isn't the case for every trading bot any damage that may occur due to different reasons will be reflected on the user at the end of the day. In summary, for me making money using a trading bot is a very risky thing and it is a method that carries the risk of losing 30 cents in order to make 3 cents of money. (The amount is written for example purposes.)

The issue is that people keep thinking trading like a machine would work but the market is an emotional thing that a machine will never be able to learn. Like if Biden goes out and says bitcoin is awesome tomorrow, a machine can't comprehend that, and the price may skyrocket to double its price when it shouldn't just because he said that, a bot would never be able to understand it. That's a big example of course but that's what I wanted to provide a proof that everyone can understand.

Smaller things happens of course, smaller news, but how could a trading bot would understand Elon tweeting about doge would make it go up, that's not understandable for a bot. Market is emotional and software do not have emotions.

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[BitcoinTurk]

The issue is that people keep thinking trading like a machine would work but the market is an emotional thing that a machine will never be able to learn. Like if Biden goes out and says bitcoin is awesome tomorrow, a machine can't comprehend that, and the price may skyrocket to double its price when it shouldn't just because he said that, a bot would never be able to understand it. That's a big example of course but that's what I wanted to provide a proof that everyone can understand.

Smaller things happens of course, smaller news, but how could a trading bot would understand Elon tweeting about doge would make it go up, that's not understandable for a bot. Market is emotional and software do not have emotions.

Absolutely, none of the trading bots can perform transactions by following the news and detect the importance of the names in the news content. For example, if the scenario in your message occurs all the trading bot can do is evaluate possible price movements and enter a transaction order after the rise&volume increase. Of course, since this is generally the working logic of the trading bot's algorithm it will be possible to enter a similar transaction order in case of price changes that may occur due to volatility.

In another scenario shown as an example, the best transaction bot can do is enter transaction orders by following the words. Again, in this case the words in the fake tweets will again mislead the algorithm and the trading bot will make a mistake and cause the user to lose money. People can think logically and emotionally, but unfortunately algorithm or AI can only calculate statistics and probabilities. This is the most obvious difference between trading bots and individuals following the news. Finally, I would like to end my comment with a word;

Without our soul, we are just machines.

[Beerwizzard]

Again, in this case the words in the fake tweets will again mislead the algorithm and the trading bot will make a mistake and cause the user to lose money.

I've got an idea. Somewhere there should be a bot which is instantly buying DOGE each time Elon Musk is tweeting something about cryptocurrencies.
100% win rate guaranteed.

The issue is that people keep thinking trading like a machine would work but the market is an emotional thing that a machine will never be able to learn.

Trading bots are not a source of free money. People still need to conduct market research to make the proper settings and control if they are still valid.

[kingvirtus09]

Looking to get some real-world feedback on trading bots, the pros, the cons and the most important question... do they work?

So please, only comment below if you're actively using trading bots and how successful they are.

Why didn't you even state whether you utilize a trading bot? The majority of people are aware that the trading bot is not profitable; the only individuals who use it are those who want to make money through trading but do not wish to engage in actual cryptocurrency trading.

According to my own observations, copy trading, AI trading, and trading bots are all the same; they're just used for the actual trades. This is because it seems like the platform is paying someone else to perform the work we should be doing, so we just pass the work along to them.

[Mahanton]

The issue is that people keep thinking trading like a machine would work but the market is an emotional thing that a machine will never be able to learn. Like if Biden goes out and says bitcoin is awesome tomorrow, a machine can't comprehend that, and the price may skyrocket to double its price when it shouldn't just because he said that, a bot would never be able to understand it. That's a big example of course but that's what I wanted to provide a proof that everyone can understand.

Smaller things happens of course, smaller news, but how could a trading bot would understand Elon tweeting about doge would make it go up, that's not understandable for a bot. Market is emotional and software do not have emotions.

Absolutely, none of the trading bots can perform transactions by following the news and detect the importance of the names in the news content. For example, if the scenario in your message occurs all the trading bot can do is evaluate possible price movements and enter a transaction order after the rise&volume increase. Of course, since this is generally the working logic of the trading bot's algorithm it will be possible to enter a similar transaction order in case of price changes that may occur due to volatility.

In another scenario shown as an example, the best transaction bot can do is enter transaction orders by following the words. Again, in this case the words in the fake tweets will again mislead the algorithm and the trading bot will make a mistake and cause the user to lose money. People can think logically and emotionally, but unfortunately algorithm or AI can only calculate statistics and probabilities. This is the most obvious difference between trading bots and individuals following the news. Finally, I would like to end my comment with a word;

Without our soul, we are just machines.

It would really just follow on the command or settings on what the trader had set up on which it is really that not that smart on trying out to adjust whenever there's a market news which it would really be the main disadvantage when you do make use of a bot and leaving it there compared when you are really that making some manual trades on which you could really be able to make out some adjustments if you wanted to.
I agree on some words that most people would really be having that kind of impression towards trading bot that this is something that makes them really be able to make profits without doing anything which it is really that a main wrong misconception by many specially to those noobs who doesnt really have the idea on what they are really that doing. You cant really make yourself that profitable even using up a trading bot because the market could really be able to move on a random manner and this is why i do always prefer on manual trades on which you could really make some adjustments if ever there are sudden news but if there's none
then you can leave the bot running and doing its job.It does really make things even more easier i should say.

[Ahli38]

I am not an active user of trading bots. But I used it quite often a year ago. But I only use trading bots provided by the exchange itself. Like on Binance there is a trading bot feature called Grid. I've also tried some third-party bots. But I think it's not much different from the bot provided by Binance. So I would advise anyone to avoid paid trading bots. Because if you are interested in using a trading bot, it is available for free on Binance. And talking about the actual profit percentage, it depends on our intelligence in managing the bot itself. And I prefer to use bots on trading pairs that are sideways but with pretty good trading volume. Like on Ethereum. But we have to be careful because sometimes bots only display profit percentages as if we continue to make profits. But apparently not. And high volatility is also not suitable for using Bots. But that was my experience last year. So I don't know what trading bots can do now. But I'm sure it won't be much different. And I personally am more confident trading manually than relying on bots. Because maybe I am a day trader. But if someone has another profession such as an office or factory employee who is very busy. So using a trading bot can sometimes really help. But first we have to learn a lot to operate it properly.

[Fara Chan]

Why didn't you even state whether you utilize a trading bot? The majority of people are aware that the trading bot is not profitable; the only individuals who use it are those who want to make money through trading but do not wish to engage in actual cryptocurrency trading.

It could be like that, but we also can't conclude everything like that because sometimes bots are also needed in trading, even if only to a limited extent. Because before the existence of trading bots, traders were also quite comfortable trading manually using the techniques they each used in the market, but now traders will certainly see how easy it can be through trading bots. So that they don't use it wrongly because not all trading requires bots.

According to my own observations, copy trading, AI trading, and trading bots are all the same; they're just used for the actual trades. This is because it seems like the platform is paying someone else to perform the work we should be doing, so we just pass the work along to them.

Expressions like that are quite reasonable, so even if a trader doesn't use copy trading, AI trading, and bot trading, he can still do his own work as before all of that existed like now. This means that these three things are just tools for traders which can be used according to their needs, although it doesn't matter if they are not used because work can still be done as usual.

[blockman]

The issue is that people keep thinking trading like a machine would work but the market is an emotional thing that a machine will never be able to learn.

Trading bots are not a source of free money.

That's what many are still thinking up to now. When they hear someone who trades crypto, the first thing that will enter into their minds as a first impression is that person is good at making money. Little did they know that many of the traders are having troubles with their own trades and not earning as much as they were thinking. And in terms of bots, they think that these are money making machine but it is just making the trades easier but it's still gonna be dependent to the decision of the trader.

People still need to conduct market research to make the proper settings and control if they are still valid.

Yes, DYOR and gain more experience if they want to pursue trading. Don't get into unknown bots if you're for it so that you won't be a victim of malware that's injected to unknown sources.

[Cookdata]

While looking for shortcuts in all cases, I think we should never take shortcuts in trading. It is better to be as self-reliant as possible when it comes to trading. You need to be an experienced trader to operate a trading bot properly though. A new member will not be able to use the trading bot properly even if he wants to. There are financial risks in trading and if we use trading bots our financial risk will increase so it is better to avoid such trading system to avoid financial risk. In the case of trading, if we give ourselves time and try to learn about trading well, then we will know much better about trading. Whether we use trading bots or anything else, we need to be experienced in trading first, only then we can do well in trading.

If we want to say the truth to ourselves, the centralized exchanges especially Kucoin that provide bots services know very well that this is nothing but a scam but they will give customers false hope that they can do more with these exchanges and make more money but the truth is that they can't make anything from trading, instead of using trading bots, I will rather trade using support and resistance line than bots that will not yield anything after 30 days.

There was a review I watched on YouTube about these bots, they are profitable and there was a loss too and the total profits and losses were balanced down, the loss was more than the profits and that beat the objective of a real trader in my opinion, in the bull run they gain more profits than the loss.

[Patrol69]

It depends and I think everyone will agree with me saying that, I believe that bots work depending on how efficient and competent the person that will program the bot will, think of scientific calculator, at the hands of a normal student, they will only be able to access functions that is easily presented on that calculator but if that calculator is on the hands of say a mathematician or an engineer, they will be able to use the most out of it because they know the ways to use it and how to navigate the other functions so it's the same thing with bots.

Of course, how efficiently this technology can work depends on how efficiently this technology can be managed. If the operator is good then it is possible to get maximum efficiency from a technology but if the operator has no idea about the operation of the technology then it is nothing but foolishness to expect 100% efficiency from that technology. Trading bots are good for those people who can use and manage this technology properly. Since operating a trading bot requires prior experience, an experienced person should apply their experience directly. Trading like a manual even if the machine works well. Manipulation is possible in case of machines but that is not possible so we should do some work manually instead of relying on technology in all cases.

[Sanitough]

I am not an active user of trading bots. But I used it quite often a year ago. But I only use trading bots provided by the exchange itself. Like on Binance there is a trading bot feature called Grid. I've also tried some third-party bots. But I think it's not much different from the bot provided by Binance. So I would advise anyone to avoid paid trading bots. Because if you are interested in using a trading bot, it is available for free on Binance. And talking about the actual profit percentage, it depends on our intelligence in managing the bot itself. And I prefer to use bots on trading pairs that are sideways but with pretty good trading volume. Like on Ethereum. But we have to be careful because sometimes bots only display profit percentages as if we continue to make profits. But apparently not. And high volatility is also not suitable for using Bots. But that was my experience last year. So I don't know what trading bots can do now. But I'm sure it won't be much different. And I personally am more confident trading manually than relying on bots. Because maybe I am a day trader. But if someone has another profession such as an office or factory employee who is very busy. So using a trading bot can sometimes really help. But first we have to learn a lot to operate it properly.

Yes, it certainly helps but it cannot be reliable to give you consistent profits. Trading bots are programmed software tools so how can these be good for unpredictable market like crypto. This is the reason why manual trading is still the best option. Use your own intelligence and skills, and not through computer related. Trading is a battle of our minds and emotions so it should be done through trading on our own.

[Maslate]

Trading bots would not be invented if they don't work in the first place. Of course they are working but probably at a limited time, unlike trading manually that can offer you limitless profits as long as you have sufficient knowledge and skills to overcome the risks in trading. However, trading bots could only be working if those who operate them are highly knowledgeable and skillful as well.

[JeffBrad12]

Trading bots would not be invented if they don't work in the first place. Of course they are working but probably at a limited time, unlike trading manually that can offer you limitless profits as long as you have sufficient knowledge and skills to overcome the risks in trading. However, trading bots could only be working if those who operate them are highly knowledgeable and skillful as well.

thats true, knowledge and skill also required in setting up the bots, this is why sometime we see some bots that getting the adjusted setting from some professional.
also, if AI is implemented within the trading bots it will be even more massive help towards the trader themselves.
there is also reason why many exchange give some bots feature in their platform because it has been proven to be helpful for many.
so in conclusion these bots are working really well for those that know how to set it up and not many people can do that.

[ultrloa]

Trading bots would not be invented if they don't work in the first place. Of course they are working but probably at a limited time, unlike trading manually that can offer you limitless profits as long as you have sufficient knowledge and skills to overcome the risks in trading. However, trading bots could only be working if those who operate them are highly knowledgeable and skillful as well.

thats true, knowledge and skill also required in setting up the bots, this is why sometime we see some bots that getting the adjusted setting from some professional.
also, if AI is implemented within the trading bots it will be even more massive help towards the trader themselves.
there is also reason why many exchange give some bots feature in their platform because it has been proven to be helpful for many.
so in conclusion these bots are working really well for those that know how to set it up and not many people can do that.

Ai could actually help a trader since in a quick seconds of writing they can see a wide result if they want to see some past statistics and other informative matters that can help them on taking decisions on their trades. But we cannot expect that Ai or bots  can help maximize or generate us a profit since this is just a helping tool where we can automate our trades if we are lazy and cannot always set our trades. Other got wrong expectation about it that's why they get scam since there expectation is so unrealistic about those tools.

[Ahli38]

I am not an active user of trading bots. But I used it quite often a year ago. But I only use trading bots provided by the exchange itself. Like on Binance there is a trading bot feature called Grid. I've also tried some third-party bots. But I think it's not much different from the bot provided by Binance. So I would advise anyone to avoid paid trading bots. Because if you are interested in using a trading bot, it is available for free on Binance. And talking about the actual profit percentage, it depends on our intelligence in managing the bot itself. And I prefer to use bots on trading pairs that are sideways but with pretty good trading volume. Like on Ethereum. But we have to be careful because sometimes bots only display profit percentages as if we continue to make profits. But apparently not. And high volatility is also not suitable for using Bots. But that was my experience last year. So I don't know what trading bots can do now. But I'm sure it won't be much different. And I personally am more confident trading manually than relying on bots. Because maybe I am a day trader. But if someone has another profession such as an office or factory employee who is very busy. So using a trading bot can sometimes really help. But first we have to learn a lot to operate it properly.

Yes, it certainly helps but it cannot be reliable to give you consistent profits. Trading bots are programmed software tools so how can these be good for unpredictable market like crypto. This is the reason why manual trading is still the best option. Use your own intelligence and skills, and not through computer related. Trading is a battle of our minds and emotions so it should be done through trading on our own.

Correct, I finally stopped trying to use trading bots. Because as you said, trading manually is much better. It's just that we must have special time to trade. Because trading requires time to make analysis. And actually using a trading bot is not as practical as you might imagine. Because before determining which trading pair to enter. We also have to make a fundamental analysis so that we don't experience large losses when prices suddenly change direction. Because the weakness of trading bots is that this tool cannot stop making repeated entries when price changes occur so quickly. Because trading bots are only based on basic technical analysis and trading bots do not have the ability to know news or fundamental analysis. So it is very dangerous when the market is in uncertain conditions like now. Where bad news and good news keep appearing and make the market have high volatility.

[BitcoinTurk]

I've got an idea. Somewhere there should be a bot which is instantly buying DOGE each time Elon Musk is tweeting something about cryptocurrencies.
100% win rate guaranteed.

Of course, the fact that many trading bots on the market fail doesn't mean that they all fail. Trading bots work with a specific algorithm and it is possible to enter commands such as "take action when this person tweets about that". However, regardless of the conditions or the orders entered into the trading bot they will definitely not be like the transactions made by a trader who follows the market and opens transactions manually.

It would really just follow on the command or settings on what the trader had set up on which it is really that not that smart on trying out to adjust whenever there's a market news which it would really be the main disadvantage when you do make use of a bot and leaving it there compared when you are really that making some manual trades on which you could really be able to make out some adjustments if you wanted to.
I agree on some words that most people would really be having that kind of impression towards trading bot that this is something that makes them really be able to make profits without doing anything which it is really that a main wrong misconception by many specially to those noobs who doesnt really have the idea on what they are really that doing. You cant really make yourself that profitable even using up a trading bot because the market could really be able to move on a random manner and this is why i do always prefer on manual trades on which you could really make some adjustments if ever there are sudden news but if there's none
then you can leave the bot running and doing its job.It does really make things even more easier i should say.

Yes, a trader who has a quality trading bot and can manage it or adjust the necessary orders well can definitely make money with this method but this will not be the case for many traders. Personally, I'm not exactly hostile to using trading bots but I think that anyone who will use a trading bot should be aware of all the potential risks. On the other hand, I don't think that everyone can make money by using a trading bot as the possibility of incorrect transactions is high depending on the quality of the trading bot. As I mentioned, I have no hostility towards the use of trading bots, but I do not recommend their unconscious use.

[Peanutswar]

Again, in this case the words in the fake tweets will again mislead the algorithm and the trading bot will make a mistake and cause the user to lose money.

I've got an idea. Somewhere there should be a bot which is instantly buying DOGE each time Elon Musk is tweeting something about cryptocurrencies.
100% win rate guaranteed.

This is a good idea we know already when Elon musk makes a move with their favorite coins people keep buying and the market pumps immediately but still there's a possible condition we know how does the market makes manipulations, better if the bot or the programmer itself makes a good statement that must need to verify the percentage of the pump, I don't know if its possible they can make a TA in the code to identify for the TP/SL if the pattern satisfied the condition.

[LogitechMouse]

Yes... or maybe not? I guess so.
I didn't ever tried using it when I'm still trading because trading manually is still the best instead of you just letting a bot trade for you.

You can control your own decisions if shit happens. A bot isn't reliable as it is. Many are promoting trading bots. Many are adding trading bots in their platforms. Still, manual trading is the best. On the other hand though, with AI starting to become more popular, I will not be surprised if trading bots will become more and more reliable because of AI. If trading bot is working 100% of the time, there must be no losers in trading right now. An AI bot will just rely on the things that you set it to do.

We know that the markets are greatly affected by the news, and the bot don't care about it. What you put is what it will do.

[Beerwizzard]

Again, in this case the words in the fake tweets will again mislead the algorithm and the trading bot will make a mistake and cause the user to lose money.

I've got an idea. Somewhere there should be a bot which is instantly buying DOGE each time Elon Musk is tweeting something about cryptocurrencies.
100% win rate guaranteed.

This is a good idea we know already when Elon musk makes a move with their favorite coins people keep buying and the market pumps immediately but still there's a possible condition we know how does the market makes manipulations, better if the bot or the programmer itself makes a good statement that must need to verify the percentage of the pump, I don't know if its possible they can make a TA in the code to identify for the TP/SL if the pattern satisfied the condition.

In case with Elon and DOGE the percentage of the pump is always high in the momentum. So if we need to have an automated bot then we can just lower TP for like 1-3%. This should work for sure and at the same time with a reasonable leverage it should give a good profit. But I'm not sure about pump verification as it takes seconds after the tweet to get the price pumped which can only be caught with the automated bot.

Does anyone know if there is any no-code platform that may help to create a bot like this? I'm curious to try this strategy. I don't have any tech skills but the settings doesn't seem complicated.

[wxa7115]

Again, in this case the words in the fake tweets will again mislead the algorithm and the trading bot will make a mistake and cause the user to lose money.

I've got an idea. Somewhere there should be a bot which is instantly buying DOGE each time Elon Musk is tweeting something about cryptocurrencies.
100% win rate guaranteed.

As far as I know at least one bot like that was created when Elon started to tweet about dogecoin and this market, I do not know how effective it was but if I were to guess I suppose it was effective, as back then people gave a lot of weight to anything that Elon said about this market.

However such strategy was not bound to work for long since even if Elon is still influential when it comes to meme coins, his antics has caused a lot of people to ignore him completely.