The Future of Stock Markets and Crypto Trading : Robot vs Robot

in #bitcoin7 years ago

Is the stock market entering new and uncharted waters? Will there be any use for humans in the future speculative markets of the 21st century?

In this article we will explore the coming transformation of market trading into a purely robotic and technical activity in which robots and algorithms are pitted against each other in a battle of the byte in the quest for the best gains.

I was browsing through different technology articles when I found an interesting article about developments in bot algorithms that are taking over the roles previously held by experienced traders. This article was published by the Financial Times and was entitled 'Who is the sucker when robot trades against robot?'

According to the article in the past few years there has been an increasing interest in computer-powered investing. According to Barclays, assets managed by quantitative hedge funds has doubled over the past decade and hit a record $500bn last year.

Stock Markets have a long history of using algorithms for trading but what about cryptocurrency markets?

This is the question I am a bit more interested in uncovering and I found a few interesting points made in an article published by Bitcoin Magazine entitled 'Op Ed: The Role of Trading Bots in the Cryptocurrency Market.'

Chatbots allow you to be involved in the cryptocurrency marketplace while focusing on other responsibilities. But not just in an omnipresent way, they’re clued in to industry trends, know the necessary data and patterns and exactly when to trade — and when not to. Technically, you could say it’s cheating a little.

Arbitrage trading — the act of buying and selling commodities in one market and selling them for higher in another — is now possible with chatbots and automated systems. Another possibility is called market making, which involves generating profits based on long-term activity via sales and orders.

This is an interesting development as all sorts of cryptocurrencies can be traded using this new line of futuristic chatbots. We are talking about cryptocurrencies including Bitcoin BTC, Ethereum ETH and even lesser known altcoins. Be prepared for a bumpier ride as the cryptocurrency market expands.

Techblogger Wrap Up

The world of bots is ever changing as are the options available on the market... For a few specific leads on chatbots to increase your automated trading profits I highly recommend reading 'Op Ed: The Role of Trading Bots in the Cryptocurrency Market'

Haasbot, Tradewave, Zenbot and Cryptotrader are some of the biggest names mentioned in the automated cryptocurrency trading sector.

What are your thoughts about chatbots and trading algorithms? Will there still be a place for regular old trading conducted by humans in the future or are we too emotional and slow in our trading decisions to compete with this rapidly advancing trading environment?

Please leave thoughts and comments below.

Thanks for reading!


Who is the sucker when robot trades against robot? - Financial Times

Op Ed: The Role of Trading Bots in the Cryptocurrency Market - Bitcoin Magazine


Lots of people are promoting using bots to trade on volitility of the crypto markets. I just wonder how the bot vs bot going to work when they are programmed with similar parameters

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Trading robot vs robot leaves no long lasting for this crypto currency market i guess so rather going competition time to think about quality. Thanks for Sharing this Info . Cheers


Or neglected agreeable of discovery concluded oh it sportsman.

There will always be people using bots and other ways to 'cheat' or get an edge over competitors. I am uncertain how bot vs bot would be, but I would say whoever has the better programmed bot parameters into how buying, selling and predictions etc work and makes a profit, they will definitely get an edge.

Thanks for the article mate!

Manual pattern traders will always have an edge in every market. The Bunds currently has the highest percent of algos to human traders and yet I know hugely successful manual discretionary traders.

If algos controlled the world then algos could control the markets but this is not the case. Human Nature has and always will exist in the world. The need for money and the flows of currency will continue to exist based on human nature and that my friend is why people like me, manual traders, will always be able to beat the market.

This has been my experience as well although lately ive noticed a disturbing trend in crypto. During low volume periods there interestimg low volume pumps and dumps that look very mechanical to say the least.

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