Trading Bots: Are They Really the Key to Success?

robot
Abstract generation in progress

Automating cryptocurrency trading with bots is a trend that keeps growing. More than 135,523 active strategies and a total value of $8.5B managed... impressive? Yes, but I have seen too many traders lose their money by blindly trusting these tools.

I have been in this little world for several years and, honestly, these shiny numbers hide a more complicated reality. Most users copy strategies without understanding what they are doing. It's like handing the keys to your car to a stranger!

Platforms show very selective success stories. Look at that AVNTUSDT bot with +52.27% ROI in just 4 days... but how many failed in the meantime? They don't mention it.

The bots offered in the market are varied:

  • Spot Grid for "buy low, sell high"
  • Futures Grid to automate longs and shorts
  • Arbitrage for delta neutral strategies
  • Rebalancing for multi-coin portfolios
  • DCA to average down

The problem is that most work well in predictable sideways markets, but when there is real volatility, they often fail spectacularly. I have seen portfolios disappear with sharp market movements.

The statistics seem impressive: HEMIU­SDT with +74.40% ROI, STBLUSDT with +115.86%... but let's not forget those maximum MDD (drawdowns) that reach 49.18% in some cases. This means you could see half of your investment evaporate before recovering.

Most users do not understand terms like "7D MDD" or "Matched trades" but still invest their money following the crowd. This is the perfect recipe for disaster.

Do you really want to put your money in bots that barely understand how the markets work? I prefer to understand what I'm doing before trusting algorithms that I can't audit.

I'm not saying they never work, but we need to be realistic about their limitations and risks.

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