History of Trading Bots

What we know today as bots or automatic trading system (ATS) has been around in its most basic form since the 1940s when Richard Dunchian used set rules to purchase funds. However, modern bots as we have these days came to limelight in the 1980s when a popular trader, John Henry applied a similar strategy in trading stocks. Since the 1990s, fund managers have increasingly used automated trading algorithm to manage the funds of client but the increased attention that bots have received in recent years is mainly due to advancements in IT. Private automated trading has been used in the forex market and most recently in the coin market. Automated trading platforms are becoming common as primary cryptocurrency exchangers are giving traders more room to explore the market and electronic order book. It is important to understand that bots are mostly projects in development as eloquently captured by the Codex. According to them,

“An automated trading solution contains at least THREE main components: – indicators – configuration – trading engine People often say “bot”, but mean “solution”. “bot” and “solution” are two different terms. A “bot” is a tool. A “solution” is a system that uses tools, bots and others (!), to gain. It is important to see the difference, and not to judge a bot using the criteria of a solution. There is no “the best choice” because the bot or bots that is/are the most profitable to use is/are the result/results of a complex function. More often than not, people who say, that they would like to get a setup, really need a solution.” Codex, BitcoinTalk

In essence, a good bot would do a lot in the right hands since they mostly are just tools that perform based on the expertise of the user. Over time, as AI controlled bots are developed, this narrative could change. But what is obvious is that such bots would not be readily available to public since the owners would likely take advantage of the edge it gives them over the market.

Strategy To Win Every Trade

  Have you ever wondered if there is a simple strategy that a trader could apply to win every trade? Since this is what every trader wants, especially those who are new to trading, I’d like you to have a look at Quickfinger Luc’s strategy of winning every trade. Perhaps, you could apply it to your bot trading and make it a success. Check his video here.

Copy Trading for Beginners

There are many traders that have been trying to make a success out of their trading activities but haven’t been able to do that yet. It could be that they are new in trading, or they just don’t know how to read the market well. For such traders, I’d recommend that they adopt copy trading to get good results. This is basically following the trade of experienced or professional traders and getting the exact result they get. There are many copy trading platforms but this is my top recommendation.

Conclusion

There is room for every trader whether they’re experts or beginners. However, the most important virtue that any trader could imbibe is education – learning everything they could to trade effectively, bearing in mind that the opportunities offered by automation can best be utilized by traders who have developed good strategies. Interestingly, a sub-niche of bot strategists is growing. These are people who are experts in setting up good bots. Remember that bots are not born equal. Also bear in mind that there always are risk associated with using unknown random bots. But with a good bot, you can be sure that your trading is made easier.