Were closely watching the Crypto Currency Market when you can think of it as that, with all the fake data, fraud, and related problems. One thing shines – it is not so unique of FX, commodities, futures, or stocks. Market dynamics are market dynamics. And since several readers of the fine site will already know – many traders lose. There’s been analysis done with this, we all know how this ends. A few early investors create a bundle and thousands or millions even are still holding the bag. From one perspective, a bubble is a lot like a ponzi scheme. In MLM, there are several who break the bank – the founders.
If you’re not the founder – can you be sure which Crypto is going to be the following Bitcoin? You seriously don’t. You have no idea. You can turn to Korea and do every one of the due diligence you need, the fact remains that no one can start to see the future or a top analyst can be wrong at times.
Quant traders have a similar doctrine all of them share – they’re smart enough to learn how stupid they may be. They know their particular flaws and they endure an increased power- that’s Artificial Intelligence.
Computing power is now so massive that it’s likely that everyone can off their own house office create an intelligent automated program that does well. Of course, as with the laws of market dynamics, it’s also possible to build a robot that is worth exactly zero – a major pile of crap. When a quant bakes an algorithm it’s either priceless or worthless. If it really works, she has effectively made a income generating machine. If it won’t work, there’s no value to anyone not academics.
How do we understand what method works, building a functional bot or get one? There are obvious conflicts of curiosity in those that sell bots. The internet may be covered with good marketeers, while profitable quants mostly keep their strategies to themselves. Selling something, and trading a robotic, are actually 2 different skills.
Crypto up to now has shown similar to most markets: impossible to trade.
Although are kicking themselves because of buying and holding, We can tell you as being a trader i speak for many space that there’s absolutely no way I’d personally experienced the patience to take a seat on the hugely profitable position for 3 years as the price goes parabolic.
That is why quants develop and trade algorithms – picking entries and exits can prove to be brain-destroying. There are dangers and risks with robots too needless to say, but you are of your different nature.
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