Case Study: Why you should start considering 'ROI Limit' when using Bid Bots.
In a recent update on the Steem Bot Tracker Website @yabapmatt included the ROI limit that basically puts a cap on the loss a bidder can make in a voting window. Consequently, it also limits the profit the bot owner can make. That explains why it is not very popular with most bot owners with only about 24 bots out of 85 employing this rule.
Case Study: Massive Bid destroys a bidding cycle.
A few days ago while I was looking for a profitable opportunity on the Steem Bot Tracker Website and I was shocked to see the @booster bot with a massive $1007.38 Total Bid for $124.40 Vote Value.
I had to investigate that issue further because it stood out like a sore thumb. I was expecting a freak occurrence where several people threw in heavy bids and were probably not aware of the Steem Bot Tracker Website. What I discovered was quite shocking.
The @speedvoter account had placed a massive 670SBD vote on an @evilmorty post. I couldn't tell whether it was by accident or it was intentional but it had massive consequences. The accounts that bid during that window lost almost 90% of their vote value. Someone who placed a 30SBD bid received a $4 vote. The 670SBD bid received a mere $111.63 vote.
There is possibly no worse feeling on Steemit than seeing your hard earned SBD or post earnings wiped out. That really made me think about the bots I used. The only person who benefits from something like this is the bot owner. That was basically a donation to the @booster account.
I would hope that other bigger bot managers would incorporate the ROI limit into their bots to protect their users. A hard limit of about -10 or -20 would be sufficient to ensure that the bid bot owner profits from an active bid cycle and to also protect the users from massive bids that go over the limit.
I hope this article is helpful to someone out there using the bid bots service. Be very careful while placing your bids. Have a nice day.
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Yes, I agree with that. Last week I made a 1 sbd bid on a small bot and it returned almost nothing. I looked at the round and after I made my bid someone made a huge 180+ sbd for a bot that is max at 30 sbd. I went to the Steemit profile and there was a message from the culprit saying he accidently sent all his sbd. He asked for a refund, which he got partially. I then asked about all the other bidders who got their vote ruined because of that mistake? I received 1 sbd refund, don't know about the other users.
Sorry to hear that. The possibility of sending a large bid by accident is very high. As people rush to place a bid in the last few minutes sometimes they may fail to double check the amount sent. You were fortunate enough to receive a refund. I think the various vote bots should include rules to prevent some of these problems and automatically refund irregular bids.
I agree!
Great information. I was curious about this. I just placed my first bit on a bot that has no limit on ROI. Hope it turns out ok!
Thanks for letting me know this was helpfull. The Postpromoter bot looks like the best deal.