No, in advertising (widespread in the vastness of the network), of course, they claim that it is their robot that is 100% unique and 100% profitable. Only here is a completely logical question: if your robot is really so good, then why are you selling it? We would trade it ourselves, and the profit from trading would more than cover all the income from the sale of this wonderful robot. However, many still use trading robots. Moreover, I myself personally know several traders who use trading robots in their trading. Also learn more about trading bot for kucoin.
So are there profitable trading robots and is it possible to fully automate trading?
The truth, as they say in the once popular American TV series, is somewhere nearby. Those of my acquaintances that I mentioned do not use trading robots to the fullest. Automated trading takes about 5-10% for them, the remaining 90% of the time they trade manually. Why is that? But because there is no such trading robot yet, which would adapt equally well to all market conditions and would constantly bring profit. As much as I hate to disappoint you, this is how things are.
However, this does not mean that trading robots are absolutely useless. No and no again. As I said, many successful traders use them in their practice. But they are not used constantly, but under certain market conditions and with severe restrictions on the capital they trade. The fact is that, as I said, universal profitable trading robots do not exist. But there are robots that trade quite tolerably under certain market conditions (for example, a trading robot programmed to trade within a narrow price range or in a “clean” uptrend).
In this case, the task of the trader is to identify these most suitable moments for installing one or another trading robot. And if the trader did not make a mistake with the definition of “suitable” market conditions, then the trading robot will make a profit (as long as the existing trend of the market price movement continues). That is, it turns out that the trader must install and remove the trading robot from trading in time. A kind of semi-automatic trading is obtained.
And as for the "profitable trading robots", widely represented in the vastness of the network and supposedly not merging, this is complete nonsense. Or rather, a vivid example of simple human greed multiplied by stupidity. As a rule, such robots are based on a simple Martingale method. After each loss, the bet doubles, and in case of a win, it returns to its original value.
In the short term, such a robot will indeed show a uniform, stable growth of the deposit. But try to run it in any strategy tester for a longer time interval and you will see that at one fine moment it drains the entire deposit. Those. wins steadily and little by little, but merges at once and everything completely. Do you need it?
In conclusion, I will repeat once again that trading robots are a really necessary and useful thing, but you need to use them skillfully. You will not be able to fully automate trading (so that it remains profitable :-)) but a significant simplification of the trading process is quite achievable.
And if you fantasize a little...
This is about practice within the capabilities that most ordinary traders have. And if you dream up a little and go beyond these possibilities, then here, as they say in Odessa, options are already possible. However, it should immediately be emphasized that these options will not be based on an analysis of the markets (how the vast majority of modern trading robots work), but on the implementation of purely technical issues (vulnerabilities) associated with the process of organizing electronic commerce.
Although, in fact, what difference can there be to how the robot makes money, as long as it is legal. However, there is one catch here, which is that the implementation of the algorithms of such robots requires unrealistically expensive technologies and opportunities that are not available to every mortal (in terms of connecting to the trading system and trading conditions).
Purely theoretically, it is possible to implement the algorithm of a win-win trading robot that earns, if not in 100%, then in 99.9% of cases. Moreover, such algorithms and such robots certainly exist, but they are in the hands of only the powerful of this world. These algorithms are based on the implementation of time delays associated with communication speed limits between bidders. The success of such a robot will depend entirely on whether the following points are implemented:
- The ability to use an order of magnitude faster connection to receive quotes (a fraction of a second faster than other trading participants);
- Possibility of realizing the obtained difference in quotes by opening and simultaneous (in a fraction of a second) closing of the corresponding positions. And this requires absolute liquidity and the absence of restrictions on trading operations.
For example, the robot receives a quote for the EURUSD currency pair equal to 1.3456 (while the rest of the majority of market makers see a quote of 1.3455 in front of them). Now he must have time to buy EURUSD at 1.3455, so that in a fraction of a second (when the other participants reach the new price) he can sell it at 1.3456. And there can be several hundred thousand such operations in one trading session. That is, even if you limit the risk to a minimum (for example, up to one dollar per trade), and earn one dollar on each such operation, you can make a profit of several hundred thousand USD in one day.
Not bad, right? The main condition here is that the price moves, and it doesn’t matter in which direction.
