Use of bots for trading purposes

[Grant]

to be quite clear from the outset, i know little to nothing about trading - i have purchaded and sold about 3 times in total, and previously (a long time back during the wild west days of crypro), used my account to shift funds across the border.

be that as it may, i find crypto trading interesting. and more so, trying to understand factors that drive the market.
many years back i used to often trade gold options on the jse - understanding the factors that drove the trade of stock related to a underlying physical asset was a lot easier !

one thing i have noticed is the cnn "fear and greed index", seems to correlate strongly with movement of crypto trade - strongly, not perfectly.



in any event, i stumbled upon a youtube video giving instructions on how to set up a bot using chat gpt to develop a code.
out of curiosity, i have gone thru the process, but yet to transfer any funds in order to experiment a little.

a bot for trading purposes makes a certain amount of sense, as it removes trades driven by emotive impulse and kneejerk reactions.

here is the vid - interested to hear opinions on this:

 

[Speedster]

to be quite clear from the outset, i know little to nothing about trading - i have purchaded and sold about 3 times in total, and previously (a long time back during the wild west days of crypro), used my account to shift funds across the border.

be that as it may, i find crypto trading interesting. and more so, trying to understand factors that drive the market.
many years back i used to often trade gold options on the jse - understanding the factors that drove the trade of stock related to a underlying physical asset was a lot easier !

one thing i have noticed is the cnn "fear and greed index", seems to correlate strongly with movement of crypto trade - strongly, not perfectly.
View attachment 1784209


in any event, i stumbled upon a youtube video giving instructions on how to set up a bot using chat gpt to develop a code.
out of curiosity, i have gone thru the process, but yet to transfer any funds in order to experiment a little.

a bot for trading purposes makes a certain amount of sense, as it removes trades driven by emotive impulse and kneejerk reactions.

here is the vid - interested to hear opinions on this:

I tried this. Lost everything. It's nothing less than gambling - all fun and excitement when you're winning and then suddenly you lose it all.

 

[Grant]

I tried this. Lost everything. It's nothing less than gambling - all fun and excitement when you're winning and then suddenly you lose it all.

i think that is probably true of trading stocks / forex . .

 

[Snyper564]

I tried this. Lost everything. It's nothing less than gambling - all fun and excitement when you're winning and then suddenly you lose it all.

yup I can echo this messed around with bots a bit too all good till it bombs and they all bomb eventually, dont think you will know when it will and you can get out you wont...

 

[Snyper564]

to be quite clear from the outset, i know little to nothing about trading - i have purchaded and sold about 3 times in total, and previously (a long time back during the wild west days of crypro), used my account to shift funds across the border.

be that as it may, i find crypto trading interesting. and more so, trying to understand factors that drive the market.
many years back i used to often trade gold options on the jse - understanding the factors that drove the trade of stock related to a underlying physical asset was a lot easier !

one thing i have noticed is the cnn "fear and greed index", seems to correlate strongly with movement of crypto trade - strongly, not perfectly.
View attachment 1784209


in any event, i stumbled upon a youtube video giving instructions on how to set up a bot using chat gpt to develop a code.
out of curiosity, i have gone thru the process, but yet to transfer any funds in order to experiment a little.

a bot for trading purposes makes a certain amount of sense, as it removes trades driven by emotive impulse and kneejerk reactions.

here is the vid - interested to hear opinions on this:

ironically the thing you mention in crypto is still alive and well and kicking arbitrage still exists not like it was back then but today looks like 1.5% still not nothing

 

[cguy]

You may want to read:

Efficient-market hypothesis - Wikipedia

en.m.wikipedia.org

Wherever the market is, is the average of all speculation, for any asset type, and sophisticated traders are factoring everything you’re seeing in already, as well as factoring in what the uninformed speculators are doing too, and are arbitraging that value out already.

Essentially, unless you are a particularly sophisticated trader, you are flipping a coin every time you trade, and paying any fees and the spread means that you are likely to trend down.

 

[Grant]

what actually led me to contemplating bots for trade, was in fact the use of a partner for trading purposes.

i certainly lack the knowledge and the wherewith to dedicate the required time and effort to get involved in trading.
so for some time now, i have been toying with the idea of partnering with someone for trading purposes.
my thoughts in this would have me put up the capital - lets assume for discussion purposes R250k, i would assume full risk in terms of loss.
the other person would do the actual trading, with full autonomy.
an agreed trading period - for example 3 months.
at end of trading period any profits are equally shared.

these are obviously just initial thoughts.
would a relationship of this nature be generally viable and workable for both parties ?

 

[Speedster]

i think that is probably true of trading stocks / forex . .

and even more so for cyrpto

 

[Grant]

You may want to read:

Efficient-market hypothesis - Wikipedia

en.m.wikipedia.org

Wherever the market is, is the average of all speculation, for any asset type, and sophisticated traders are factoring everything you’re seeing in already, as well as factoring in what the uninformed speculators are doing too, and are arbitraging that value out already.

Essentially, unless you are a particularly sophisticated trader, you are flipping a coin every time you trade, and paying any fees and the spread means that you are likely to trend down.

ta

 

[Speedster]

what actually led me to contemplating bots for trade, was in fact the use of a partner for trading purposes.

i certainly lack the knowledge and the wherewith to dedicate the required time and effort to get involved in trading.
so for some time now, i have been toying with the idea of partnering with someone for trading purposes.
my thoughts in this would have me put up the capital - lets assume for discussion purposes R250k, i would assume full risk in terms of loss.
the other person would do the actual trading, with full autonomy.
an agreed trading period - for example 3 months.
at end of trading period any profits are equally shared.

these are obviously just initial thoughts.
would a relationship of this nature be generally viable and workable for both parties ?

What you are talking about is pretty much what an investment manager does. History has taught us that very, very few investment managers can consistently outperform the market.

 

[Grant]

What you are talking about is pretty much what an investment manager does. History has taught us that very, very few investment managers can consistently outperform the market.

yea, but not looking for an "institutional" investment manager - someone private.
i have investec and allan gray for the more "institutional & conservative" purposes.
but i have an appetite for risk - for that i use afrifocus, for both discretionary and non-discretionary trading purposes.

i'm now toying with the idea of upping the ante somewhat

 

[Snyper564]

What you are talking about is pretty much what an investment manager does. History has taught us that very, very few investment managers can consistently outperform the market.

yup I just dump all excess funds 50:50 split into S&p and Nasdaq at the moment...

Dollar hedged and good returns since march too



This is where all my excess profits go this is the "low risk" side of my investing.

 

[Willie Trombone]

to be quite clear from the outset, i know little to nothing about trading - i have purchaded and sold about 3 times in total, and previously (a long time back during the wild west days of crypro), used my account to shift funds across the border.

be that as it may, i find crypto trading interesting. and more so, trying to understand factors that drive the market.
many years back i used to often trade gold options on the jse - understanding the factors that drove the trade of stock related to a underlying physical asset was a lot easier !

one thing i have noticed is the cnn "fear and greed index", seems to correlate strongly with movement of crypto trade - strongly, not perfectly.
View attachment 1784209


in any event, i stumbled upon a youtube video giving instructions on how to set up a bot using chat gpt to develop a code.
out of curiosity, i have gone thru the process, but yet to transfer any funds in order to experiment a little.

a bot for trading purposes makes a certain amount of sense, as it removes trades driven by emotive impulse and kneejerk reactions.

here is the vid - interested to hear opinions on this:

If it were this easy, the market would be purely bot driven but it’s not… or maybe it is, but the guys winning won’t be you and I with our limited data sets.

 

[cguy]

what actually led me to contemplating bots for trade, was in fact the use of a partner for trading purposes.

i certainly lack the knowledge and the wherewith to dedicate the required time and effort to get involved in trading.
so for some time now, i have been toying with the idea of partnering with someone for trading purposes.
my thoughts in this would have me put up the capital - lets assume for discussion purposes R250k, i would assume full risk in terms of loss.
the other person would do the actual trading, with full autonomy.
an agreed trading period - for example 3 months.
at end of trading period any profits are equally shared.

these are obviously just initial thoughts.
would a relationship of this nature be generally viable and workable for both parties ?

That’s pretty much what hedge funds do - they take investor capital, trade with it. Typically there is a base charge for management (around 2-3% per annum), and they get a cut of any profits too (20-30% of profit per annum).

A key difference is that they have hundreds of quantitative analysts working on this full time. If things work well, they tend to up prices, and cases where someone has a strategy that really works incredibly well, will typically end up in a “prop” firm - why would they trade anything but their own money if it’s so successful.

The other consideration, is that anyone smart enough to do the trading for you, and give you an edge, is likely successful enough to not need your investment. You’d essentially have to find a very risk adverse genius.

 

[Grant]

The other consideration, is that anyone smart enough to do the trading for you, and give you an edge, is likely successful enough to not need your investment. You’d essentially have to find a very risk adverse genius.

indeed
my thoughts are there are probably some talented ppl out there (or even right here), that may be keen to take on a project for personal gain, but protected against personal loss - trading this "partnership" in tandem with personal trades.

 

[Speedster]

indeed
my thoughts are there are probably some talented ppl out there (or even right here), that may be keen to take on a project for personal gain, but protected against personal loss - trading this "partnership" in tandem with personal trades.

There's a Johann guy from Polokwane who's emigrated to Brazil. If you can get hold of him he might be able to hook you up.

 

[Grant]

ok
so putting both hare-brained ideas to bed now !!!

(some things always seem to be a good idea at the time)

 

[kabusi]

yup I just dump all excess funds 50:50 split into S&p and Nasdaq at the moment...

Dollar hedged and good returns since march too

View attachment 1784221

This is where all my excess profits go this is the "low risk" side of my investing.

If you care to share, what platform and fund.
Also, is this a good time to get into it for someone who is retired?

 

[Snyper564]

If you care to share, what platform and fund.
Also, is this a good time to get into it for someone who is retired?

I just use satrix simple and straight forward enough then their etf feeder funds for nasdaq and s&p.

Depends on your investment horizon 5-10 years def shorter than that no too risky

 

[B-1]

ok
so putting both hare-brained ideas to bed now !!!

(some things always seem to be a good idea at the time)

Put your real money in an investment but take some play money and gamble with it on stocks/crypto etc. Its interesting and you learn a lot about who make the real money.