(this is part 5 of the Algo-Trading Journey series)
This article demonstrates that it is MATHEMATICALLY IMPOSSIBLE to buy a bot that is profitable, and ALL that sell them are scammers.
Ideal Scenario
Let's say someone 100% honest built a trading bot that works 100% of the time.
Now, this person has decided to sell this bot.
Should you buy it?
No.
Why?
Because as soon as the bot was up for sale, it stopped working.
Why?
Because of liquidity...
Liquidity
Even if the bot really works, after a lot of people buy it, it will stop working.
Because every strategy has limited liquidity available.
It's like a water well ⛲️
You can't supply an entire world with one water well.
The same is true with trading bots. The closest ones to the exchange servers will be executed first, and everyone else will just lose money.
And note: this is in the best-case scenario where the bot works 100% of the time.
(we will not even go into why a person would want to sell such a bot instead of getting all this liquidity for himself)
Building is the ONLY option!
Be careful where you deploy the bot and with whom you share the code.
There are a lot of (FREE) platforms that provide you with everything you need to start building your bot.
BUT...
They all require you to upload/share your code with them.
And you will never know whether they used your code or not. But you will know your bot doesn't work.
REMEMBER: your code/algorithm is your only market advantage! As soon as you share it with someone, consider it lost 😲
Why not build it from scratch?
Those ("FREE") platforms provide you with everything you need BEFORE you even start building the bot logic:
- connecting to the exchange APIs
- getting and saving the data
- backtesting your strategies
- calculating ROI (and other KPIs)
- displaying charts
- etc.
Building all of this yourself would take weeks (or months) before you write a single line of your algo-trading logic.
I know this because I had to do it myself.
Because there is no way I would allow someone to steal my code after I invest days, weeks, or months trying to find an edge (a solid trading strategy).
Starter Code
Your alternative is to download this starter code that I built (from scratch) using the best programming language for finance.
It has all the necessary parts you need to start building today. And begin working on things that matter (like the bot logic).
NOTE: the starter code does NOT include any trading logic -> it only has everything you need to get started.
(like I said, anyone who sells finished trading bots is a scammer)
After you download it - it's yours.
You will COMPLETELY own it and control it.
And you will be able to develop your algo-trading bots on top of it. (and no one will have access to your secret logic, not even me)
Good luck 👍
What's Next?
I plan to post my progress here on dev.to because I find it fun... and I enjoy it.
If you want to join me on this journey, then I suggest you:
- follow my profile for more updates
- bookmark this article for future reference
- and like this post, so more people can see it
Now let's go and conquer the market :)
Will
P.S. here are some cool resources:
1. Best Programming Language For Finance
2. (FREE) AI For Finance Tutorial
3. Starter Code For Bot Building
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