Robots

[Guest clarkeytrade]

Hi Everyone

I am a newbie and still learning evryday. Do any experienced traders recommend using trading robots software? I've been bombarded with "offers" for these. On the face of ot and looking at reviews they look good, although expensive.

Any thoughts gratefully received.

Thanks

Clarkey

[Caseynotes]

Hi @clarkeytrade,  there are a couple of points to consider;

Bots tend to be designed either for trend following or range reversal and so applying the wrong type of Bot to the wrong type of market will always end in failure.

The publicity, stats and reviews will always be positive no matter what. 

Most crucially, the seller should be confident in the product and expect long use and so therefore should be willing to allow a demo period at no cost or commitment to allow the potential customer to trial the Bot for themselves before making a decision. If that is not the case I would never even consider it.

The majority of sellers won't allow a trial period because they know the Bot doesn't work, they have stopped working it themselves and concentrated on sales instead to try and recoup some of the losses it has cause them in both time and money.

[Guest clarkeytrade]

Thought so

 

Thanks Casey ?

[Guest PandaFace]

Assume you can get the same sort of botswhich alert you rather than trade? 

Maybe this would be worthwhile and then you can make a more informed trading decision at that time? 

I tend to think of it likethis... if someone had a bot which consistently made money, why on earth sell it? 

[Guest clarkeytrade]

Very True Panda

Thanks

[Caseynotes]

Take a look at the signals section (PIA and Autochartist) which are essentially Bots that alert you to a trade, rather than take the trade, based on chart patterns. 

[Mrk1977]

ok so rather than bots, does IG do anything like eToro and let you copy/follow traders..?

[Caseynotes]

Hi @Mrk1977, IG don't have mirror trading aka social trading. It is an interesting subject and there are comparisons to Bot trading.

Oanda recently abandoned their mirror trading scheme, I was following this via David Jones's regular reports over a couple of years, what transpired was the problem with consistency in changing market conditions, just like Bots.

You would regularly see a trader doing well, working their way up the ladder, and then suddenly fall off a cliff. It seemed people have the same problem as Bots, they kept on with the same strategy that had worked well in the past in spite of changing market conditions that was now causing it to fail. 

Another problem is the compromised position between lead trader and the broker as they have entered a financial relationship which can adversely affect the followers. The broker after all is in it for the increased trading volume.

Interesting article here on the next new thing 'robo advisers'.

https://financefeeds.com/social-trading-dead-apart-one-smart-company/

 

 

[Guest Thanks]

Thanks Everyone for your help with this

Regards

Clarkey