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Thread: What is Automated Crypto trading, Are Computers better at Trading?

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    Thumbs up What is Automated Crypto trading, Are Computers better at Trading?

    A Trading bot is a program connecting your exchange to execute trades for you. They do the work of trading through using a variety of indicators and signals.

    Could this option truly accomplish saving time, Finding new opportunities, Taking the emotion out of trading as well as income creation?

    In my quest to answer these questions. I reviewed these points as covered within this article. Truly interesting read.
    https://bravenewcoin.com/insights/cr...y-trading-bots

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    Trading bots automate the process by opening/closing trades. Bots require your PC/laptop to be on at all times or the use of a VPS.

    While bots remove the emotion from trading, it's better to have human eyes behind it. Having a bot with no knowledge of trading takes the responsibility out of it. Persons that do not learn how to trade and then go for an automated solution do not want to take responsibility for losses - they want to blame something else.

    The correct approach would be to learn at least the basics and then watch the methods used by the bot/s. Every automated solution uses existing indicators to make a decision. You can then try to learn from the bot what the triggers are after watching it for some time.

    The problem with all bots is that the only work under certain market conditions. Because the market is moved by human sentiment, there are times when a moving average may signal an entry but news or other factors cause the market to then move in the opposite direction. This is why human eyes are needed.

    You do have some advanced bots that also avoid news trading - but they are very resource intensive and require high end machines/VPSes.

    My conclusion would be: the individual should learn to trade to take responsibility for themselves. If they don't want to learn to trade - invest with a company or individual who does. And ensure that it's understood that trading is a high risk venture. Almost like gambling, but it's not.

    Gambling involves throwing things out and hoping for the best. Inexperienced traders do this. Experienced traders work the market and it moves from gambling to strategy. Finding the experienced ones is the challenge.

    My 2 cents.
    Knowing the solution doesn't mean knowing the method. Yet answering correctly and regurgitation are considered "learning" and "knowledge".

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    Since I'm so far out of the loop on this I'll ask, is this trading being referred to the same as "day trading"? Also, how lucrative has it been for traders who use these bots?
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    Quote Originally Posted by Chris View Post
    Since I'm so far out of the loop on this I'll ask, is this trading being referred to the same as "day trading"? Also, how lucrative has it been for traders who use these bots?
    Trading is a very broad term. It's used to reference currency - stock - crypto exchanges.

    To make it extremely basic, there are three or four forms of trading. These apply to all types of markets (currency/stock/crypto).

    • Scalping - Opening a position for seconds/minutes/hours.
    • Day Trading - Opening a position for no more than the trading day session.
    • Swing Trading - Opening a position for days to weeks.
    • Long Term Trading - Opening a position for weeks to months.


    "Opening a position" is the act of buying into a currency. Here's a general example using the most popular currency pair - EUR/USD.

    BUY EURUSD = Saying the EUR will appreciate over the USD.
    SELL EURUSD = Saying USD will appreciate over the EUR.

    Let's work with a parity value of 1.0 between the two. Trading usually has multiple digits (PIPS) behind the traditional two decimal points. So...

    1.00000 would be the value.

    You open a position valued at USD$0.01 - what you're doing is saying (buy or sell as described above) that the final figure in 1.00000 will be valued at 1 cent. So if price moves to 1.00100 - you'd have made $1. If it moved to 1.10000 then you'd have made $100 (if my math is right).

    The problem is - you risk as much to gain as you do to lose. So either you once you learn, or your broker, will have to ensure that calculated risks are taken and stops are put in place to reduce losses.

    I'll try simplify if it flies over you. And I'll add pictures to make it easier. But...

    Let's use the simplest form of an indicator. The MA (moving average).

    Traditionally with a 200 period MA, if price is above the MA then it's going up. If it's below the MA it's going down. If you take this and make a simple robot you will have more losses than wins. There's more to just taking trades above/below an MA. And this is the same concept with all robots. Market conditions can change for some reason or another. A robot can be used, but it MUST have eyes on it.
    Knowing the solution doesn't mean knowing the method. Yet answering correctly and regurgitation are considered "learning" and "knowledge".

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    ok, good info. Sounds like you're a pro at this khat!
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    Quote Originally Posted by Chris View Post
    ok, good info. Sounds like you're a pro at this khat!
    Not really. I just provide info. I wasn't doing too badly until I had some deaths in my family - then my entire psychology went off and I started having losses. I've only gotten back into it a bit this year - and not fully - just to get my feet wet. If I can regain my confidence then I'll go hard once more.

    I'm well aware of the various methods and "inner workings" of the platforms. I can provide information, but y'all know I have an issue with summaries. So I can answer questions as they pop up. Still - this is CRYPTOPIA's thread so I'm hoping he can use it to get his post count up. I will just provide details as requested.
    Last edited by khat17; Sep 21, 2020 at 06:21 AM.
    Knowing the solution doesn't mean knowing the method. Yet answering correctly and regurgitation are considered "learning" and "knowledge".

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    Quote Originally Posted by khat17 View Post
    Not really. I just provide info. I wasn't doing too badly until I had some deaths in my family - then my entire psychology went off and I started having losses. I've only gotten back into it a bit this year - and not fully - just to get my feet wet. If I can regain my confidence then I'll go hard once more.
    Sorry to hear of your family's losses, good to hear that you're bouncing back and getting into the swing of things.
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    Thank you for your replying to this thread. Your Feedback provided so much value and Also My condolences.

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    I agree and thank you for your valuable feedback. I find that many approach bots as the one to take all responsibility but it does require training. Your bot must first be configured so as to have a brain, therefore to know what all the concepts and settings mean is crucial. My advice would be to not go fully automated until these concepts are understood and the work of educating ones self is done.

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