Opinion: Bots are a critical tool for retail investors
2 min read
The thing about the future, where robotic super traders battle over micromovements in stock price, is that it’s already here. With access to algorithmic trading bots a click away, we could be seeing the fall of human investors and the triumph of artificial intelligence.
Algorithmic
The more deeply traders understand entry and exit points and timing trades, the better they will set up their bots. However, most users don’t need expert-level knowledge — they just need to understand why setting up a long-term grid bot on a microcap that has just pumped 200% is a bad idea.
Another advantage is that bots take the emotion out of trading. Even professional traders struggle to maintain a cool, calculated mind with large sums of money on the line.
Some may end up “marrying their bags” and holding when they should sell. This kind of behavior becomes “dumb money” — trades that react emotionally to the swings of the market instead of reason prevailing.
Trading bots don’t suffer this emotional handicap. They execute their strategies in a calculated vacuum. Neophyte traders could find a lot of value in these instruments on their journey toward becoming independent traders and investors.
Previously, professional traders honed their skills as part of a job. But with the advent of AI trading, retail investors now have a chance to catch up. As the specter of inflation haunts large economies around the world, it’s essential that the latest investing tools are accessible to everyone as a means of access and education so that ordinary people can best preserve their wealth and create economic opportunities.
Bill Xing is the head of financial products at Bybit. Prior to joining Bybit, he co-founded Panda Analytics, a crypto indexing and trading automation firm. He holds a master’s degree in financial engineering from the University of Illinois at Urbana-Champaign.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
