The future of robotic supertraders fighting over stock price volatility is already here. One-click access to algorithmic trading bots could see the decline of human investors and the triumph of artificial intelligence.
Algorithmic trading bots are programmed to buy or sell when they detect pre-programmed conditions and can execute almost any trading strategy. They have been used by professional traders for 20 years and these companies are also incorporating them into the crypto market.
There is now a new crop of accessible crypto trading tools on the market, created with retail customers in mind. I know—I built some of them. We are currently working on a system that will help novice investors find their risk preferences based on their previous trading and investment data.
The uptake of these bots could have a huge impact on the cryptocurrency market going forward, given that retail accounts for up to a quarter of cryptocurrency trading volume. The most interesting thing here is that this could indicate democratization in market access and participation.
Related: Why Bots Dominate The Crypto Game? Developers Earning Cash Incentivize Them
If this is to happen, access to trading bots and other specialized tools must be combined with open education. Recreating a gate system where only “accredited” investors are allowed access to the crypto market and everyone else is sidelined due to lack of education and capital is elitist and regressive target.
Unfortunately, financial education is not taught in schools and many people are at the mercy of sophisticated experts and outright scammers. Combining trading bots with the right education can take the first step towards leveling the playing field.
This technology is a kind of experiential education for amateur traders, allowing them to feel the market movements using small positions and automated strategies. You can try different bots and learn about different strategies such as arbitrage trading, dollar cost averaging, and futures trading.
Additionally, someone who has acquired bot trading expertise (e.g., using multiple bots at once to represent a hedging or diversification strategy) may perform better than experienced players. . After all, no human can monitor the cryptocurrency market 24/7 all the time, but a bot can.
In fact, trading bots thrive in the 24/7 crypto markets, allowing them to sidestep arbitrage opportunities and ride waves of high volatility. Humans cannot keep up with these markets, and bots will definitely miss the opportunities available.
However, traders must make important decisions that affect the bot’s performance, such as choosing which assets and price ranges the bot will buy and sell. So while bots are great tools, they are not without risks.
Related: Are we still upset that MetaMask and ConsenSys are spying on us?
The more a trader understands entry and exit points and timing trades, the better the bot can be set up. However, most users do not require expert-level knowledge. Long term grid on a microcap that just pumped 200% he just needs to understand why setting up a bot is a bad idea.
Another advantage is that the bot takes emotion out of trading. Even professional traders struggle to maintain a calm and calculated mind when gambling large sums of money.
Some may end up ‘marrying their own bag’ and keeping it when they need to sell it. It will be a deal that reacts emotionally to
Trading bots do not suffer from this emotional handicap. They execute their strategy in a calculated void. Novice traders can find a lot of value in these products on their journey to becoming independent traders and investors.
In the past, professional traders honed their skills as part of their job. However, with the advent of AI trading, retail investors have a chance to catch up. As the specter of inflation haunts the world’s great powers, it is time for everyone to turn to the latest investment tools as a means of access and education so that ordinary people can best preserve their wealth and create economic opportunities. accessible to all.
Bill Shin Head of financial products of Bybit. Prior to joining Bybit, he co-founded Panda Analytics, a cryptocurrency indexing and trading automation company. He holds a master’s degree in financial engineering from the University of Illinois Urbana his Champaign.
This article is for general information purposes and is not intended, and should not be construed as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author and do not necessarily reflect or represent the views or opinions of Cointelegraph.
