Autotrading is the use of AI for trading stocks or shares.
It is important to note that as of June 2021 we have seen no evidence that trading software available to the public has anything like the intelligence required to trade as successfully as you can with just a little attention to the finance press and news.
Most AI robot traders are very simple learning programmes that do not read the news and work by watching the patterns recorded by the numbers on FTSE or NYSE. This is a flawed method in our opinion as it has no understanding of the motivation of the market influences.
Cryptocurrencies are a single price commodity and not a suitable commodity for AI in our opinion as the price is subject to rapid change and the currencies tend to follow the same pattern and so trading between them is often fairly pointless.
An algorithm is not a suitable tactic for trading as the rules are not that simple. Any algorithm that has worked previously will have affected the headspace of vulnerable traders and they will not fall for the same pattern twice.
In order to understand trading you need to understand the market which is made of people.
An AI could theoretically understand financial patterns in a way that people cannot and could conceivably learn to trade in a way that would surpass humans, but this would not be a product andyne would sensibly try and sell to others. There would be much more profit in running it for themselves.
As quantum supercomputing evolved it is possible that trading AIs will be born but this would be either in the hands of those that control the vast majority of shares or it would result in a redistribution of power across the world- money is power-.
Any person claiming that they are sharing this technology because they've already made enough and want to share it with a limited number of people on a beta test is a scammer.
What are Automated Trading Robots?
Automated trading robots, also known as algorithmic trading robots, are software programs that use complex algorithms and mathematical models to analyze market data and execute trades on behalf of users. These programs are designed to automate the trading process, allowing users to make trades without having to be constantly monitoring the market.
Automated trading robots use a variety of indicators and metrics to identify market trends and make trading decisions. These indicators may include technical analysis tools, such as moving averages and candlestick charts, as well as fundamental data, such as news releases and economic reports. Based on this analysis, the software will execute trades automatically, according to predetermined rules and parameters set by the user.
There are many different types of automated trading robots available, ranging from simple programs that execute trades based on a single indicator, to more complex systems that incorporate multiple indicators and advanced risk management features. Some automated trading robots are designed for specific markets, such as forex or cryptocurrencies, while others are more general and can be used to trade a variety of financial instruments.
While automated trading robots can offer many benefits, such as faster execution times and reduced emotional trading decisions, they also carry risks. These include the potential for technical glitches, such as incorrect data feeds or software errors, as well as the risk of over-optimization, where the system is so finely tuned to historical data that it fails to perform well in real-world trading conditions. As with any type of trading, it's important to thoroughly research and understand the risks and limitations of automated trading robots before using them in live trading situations.
What are Some Examples of Automated Trading Robots?
There are many examples of automated trading robots available, each with their own unique features and capabilities. Here are some examples:
1. MetaTrader 4: This is a popular trading platform used by many forex traders, and it also offers automated trading capabilities through its Expert Advisors (EAs) feature. EAs are customizable programs that can analyze market data and execute trades based on predetermined rules and parameters.
2. TradingView: This is a web-based platform that offers charting and analysis tools for a variety of financial instruments, including stocks, forex, and cryptocurrencies. It also offers an automation feature called TradingView Pine, which allows users to create and backtest custom trading strategies.
3. NinjaTrader: This is a popular trading platform used by many futures traders, and it offers automated trading capabilities through its NinjaScript programming language. Users can create custom indicators and strategies using NinjaScript and then backtest and optimize them using historical data.
4. HaasOnline: This is a cryptocurrency trading bot that offers automated trading capabilities for a variety of exchanges and cryptocurrencies. It includes features such as backtesting, paper trading, and a customizable trading interface.
5. Zignaly: This is another cryptocurrency trading bot that offers automated trading capabilities for a variety of exchanges and cryptocurrencies. It includes features such as copy trading, where users can automatically copy the trades of successful traders, and social trading, where users can follow and interact with other traders.
These are just a few examples of the many automated trading robots and platforms available. It's important to research and compare different options to find the one that best fits your trading needs and goals.
Are There Any Dangerous Automated Trading Robots?
Yes, there are dangerous automated trading robots that can potentially harm investors. These robots may be designed with malicious intent, such as to steal user data, funds, or identity. Alternatively, they may simply be poorly designed or unreliable, leading to unexpected losses for users.
There have been cases of fraudulent trading robots being marketed with false claims of high returns and low risk, leading investors to lose significant amounts of money. Additionally, some automated trading robots may rely on unsound trading strategies or algorithms, leading to erratic or unstable performance.
To avoid these dangers, it's important to thoroughly research and vet any automated trading robot before using it. This includes reviewing the robot's performance history, reputation, and security features. It's also important to be skeptical of any claims of guaranteed profits or low risk, as these are often red flags for fraudulent or unreliable trading robots.
What are Some Examples of Dangerous Auto-trading Robots?
It's difficult to provide specific examples of dangerous auto-trading robots, as there are many different robots available, and the risks associated with them can vary widely depending on factors such as their design, intended use, and the security of the platform they operate on.
However, there have been instances in the past where investors have been harmed by fraudulent or poorly designed auto-trading robots. For example, there have been cases of fraudulent robots being marketed with false claims of high returns and low risk, leading investors to lose significant amounts of money. Additionally, some auto-trading robots may rely on unsound trading strategies or algorithms, leading to erratic or unstable performance.
To protect yourself from dangerous auto-trading robots, it's important to thoroughly research and vet any robot before using it. This includes reviewing its performance history, reputation, and security features. It's also important to be skeptical of any claims of guaranteed profits or low risk, as these are often red flags for fraudulent or unreliable trading robots.
Anyone who claims that they discovered code that predicts the stock market is a scammer.
Anyone offering autotrading bots that will trade for you for a deposit of $250 is a scammer.