First of all you have to know 2 basic things. First of all, BOTS are A PRODUCT where the payment for it is the profit of a developer, you pay a high price to put your own capital at risk for a long-term passive profit with potential to ZERO USD. Are you sure you want to do that? Second, you have to have trading experience and dedicate time to them. Therefore they give you the use of an algorithm, it is a closed program, not open source because its right of use is monetized. They are like a function f (x) or a command line that waits for our instructions and parameters based on a strategy. It is not for everyone, you have to know what you are doing, the type of market, the strategy, detect the trend, etc. Example: it is like a calculator that you bought resting on your desk, it does nothing, it just waits for your orders.
Well that's the base. Then you have the theory. And finally a clash of paradigms. In addition, beyond passive profits (although it takes time, nothing is on automatic pilot) in the long term you are paying the opportunity cost, you give up what you would earn by putting that money elsewhere (a basic project analysis).
They are based on a statistical study of prices over time. From a sample N of prices, the sample mean is sought and with that value they use a technique called statistical inference (or extrapolation) where, from those samples passed with the sample mean, they seek to explain "how it moves" the population (set of price data). Stop stop ... then with the price history I can know the price tomorrow ??? Excellent, give me 5 bots, I become a millionaire !!! It doesn't work like that unfortunately. And if so, that product would not be sold, it would be a secret. (basic logic)
Example, I stop at a corner of Nunez (an upper-class neighborhood in Argentina) to count the number of high-end cars that I see in a day and finally say "In the year 2025 in Argentina we will have more high-end cars than high-end middle class, a triumph for the middle class. " That fake bot did not detect the downward trend of the market (economic recession) nor did it cover a large number of samples, it was standing in a neighborhood (statistical population).
Conclusion: (of its foundations, not of its use) They try to explain the future with an always limited sample of data from the past. That results in a complete and monumental investment absurdity, the realm where the blessed and wonderful bot seeks to deploy. As a basic rule of thumb, we all know that past returns do not guarantee future returns. Ready, to something else butterfly! (idiom, it's time to move on)
Summary: paying a BOT to trade for example 500USD is like using an iMac to check Facebook, watch YouTube or worse, keep worried about the price of btc because you did not invest. Then you can do the same by investing your attention anyway with a tablet for a fraction of its cost, that is, you can operate thanks to that knowledge that we already have and with the freedom of not having the ROI like a backpack full of stones on your back. if you had made that expense.
Thank you very much for reading me, I hope I can generate the trigger in your curiosity and help you reflect better.
What do you think about bots? Did you use any? What was your experience?
