Taming the market with robots

We've been closely watching the Crypto Currency Market if you can call it that, with all the fake data, fraud, and related problems.  One thing stands out - it's not so different than FX, commodities, futures, or stocks.  Market dynamics are market dynamics.  And as most readers of this fine site will already know - the majority of traders lose.  There's been analysis done on this, we all know how this ends.  A few early investors make a bundle and thousands or millions even are left holding the bag.  From one perspective, a bubble is much like a ponzi scheme.  In MLM, there are a few who get rich - the founders.  

Unless you are the founder - how do you know which Crypto is going to be the next Bitcoin?  You really don't.  You have no clue.  You can go to Korea and do all the due diligence you want, the fact remains that no one can see the future and even a top analyst can be wrong at times.  

Quant traders have a similar doctrine they all share - they are smart enough to know how stupid they are.  They know their own flaws and they submit to a higher power- that is Artificial Intelligence.

Computing power is now so massive that it is possible that anyone can from their own home office create an intelligent trading system that does well.  Of course, as with the laws of market dynamics, it's also possible to create a robot which is worth exactly zero - a big pile of crap.  When a quant makes an algorithm it's either priceless or worthless.  If it works, he has effectively created a money making machine.  If it doesn't work, there isn't any value to anyone not even academics.

So how do you know what method works, how to build a working bot or buy one?  There are obvious conflicts of interest in those who sell bots.  The internet has been dominated by good marketeers, while profitable quants mostly keep their strategies to themselves.  Selling a product, and trading a robot, are really 2 different skills.

Crypto so far has proven the same as most markets: impossible to trade.  Just look at this chart and tell me where you would have entered and exited without the foreknowledge of what is actually going to happen:

While many are kicking themselves for not buying and holding, I can tell you as a trader and I speak for many in the room that there is no way I would have had the patience to sit on a hugely profitable position for 3 years while the price goes parabolic.  

That's why quants develop and trade algorithms - picking entries and exits can prove to be brain-destroying.  There are dangers and risks with robots too of course, but they are of a different nature.

Choose your bot @ www.fxbot.market   ANNOUNCEMENT:  ROBOTS WANTED!  List your robot for free - connect to Handy the trade copy bot and let fxbot.market do all the work for you.

Comments

exartizo Mon, 06/18/2018 - 10:24 Permalink

So you're the first of a new breed of Despicable Folks Filth,

...pedaling robots, HFT algorithms?

LMFAO

Tyler(s) do we really have to put up with this shit?

globalintelhub exartizo Mon, 06/18/2018 - 19:42 Permalink

you are really stupid.  90% of traders who consistently win use algorithms of one kind or another.  most of them are not hft.  if you have an alternative which is better, we are all ears.  bots work.  and what's wrong with developing robots to trade?  there was a class of workers called Luddites which is where your stone age comments fall into:  

The Luddites were a radical group of English textile workers and weavers in the 19th century who destroyed weaving machinery as a form of protest. The group was protesting the use of machinery in a "fraudulent and deceitful manner" to get around standard labour practices.[1] Luddites feared that the time spent learning the skills of their craft would go to waste as machines would replace their role in the industry.[2] It is a misconception that the Luddites protested against the machinery itself in an attempt to halt the progress of technology. Over time, however, the term has come to mean one opposed to industrialisationautomationcomputerisation, or new technologies in general.[3] The Luddite movement began in Nottingham and culminated in a region-wide rebellion that lasted from 1811 to 1816. Mill owners took to shooting protesters and eventually the movement was suppressed with military force.

the markets themselves are a computer system it is only rational and reasonable to use computers to trade markets.  or what do you suggest, we go back to floor trading and ticker tape?  ok.. nice try but not going to happen.

In reply to by exartizo

pindos Mon, 06/18/2018 - 11:35 Permalink

No exchanges permitted in New York.  States regulate their exchanges. Computer for bookkeeping only.  Floor traders required. No margin.  No hedging.  No SEC. Fixed.