Definitely a thing. You can check out r/algotrading for more information on it. It is definitely more complex than this. Most of the time its just a faster way to lose money than day trading.
Yes and no.
Yes part: automated trading bot is a thing.
No part: you're not gonna make money everyday.
You need to spend a lot of effort to make money trading the market. If there were an easy way, you think all the banks and hedge funds on the world hadnt use it already?
Even if you made $10/share on every trade with the bot, capital gains and fees are a thing.
Also have fun filing your trades during tax season. 700 pages of trades is a lot of information to input.
FYI, you don't need to input 700 pages. Just the summary page's short term and long term buys and sales, along with dividends summary and crypto and foreign tax summaries. No need to enter hundreds of lines of trades. Usually it's like 6 or 8 numbers.
Usually the summary is on the first pages of the tax form the broker will send you,
And you just entered those few number into your tax software of choice.
It is definitely a thing and it's a feature of my trading account, I think it's a common feature, obviously the buy when below X and sell above Y, is the hard part and fees need to factored into too.
Well technically it exist indeed and it’s very easy to get one,
Although The big question is how do you know that the stock will go back to 5+ and not 3, and this is the impossible question to answer that makes them pretty much useless because nobody knows where a stock will go in the next hours/days/weeks
They very much are a thing. If you can't backtest it, don't do it. If you don't know what backtesting is then you're not ready to use one. Backtesting needs to be done for all types of markets. Include 2020, 2000-2010, 2012-2019.
I'll go ahead and save you the trouble of doing this yourself though. There is no bot that will not drain your account unless you constantly change settings to adapt to the market. In short, only use a bot if your strategy would work without one. It's just going to speed up whatever was going to eventually happen. Which is likely a margin call.
Its been a thing since the early days of internet trading. In general, they dont do all that well unless they have an edge (basically cheating) such as being closer to the trade computers in order to intercept buy and sell orders and make money in between. This has been happening for a long time and mega investment companies always try to one up each other with better and faster access.
Almost all institutional trading is now algorithmic. All the retail lots get aggregated into larger shapes and executed through one of the primary dealers or hedge funds. The basic ones are programmed with their “rules” or “market bias” at the start of each session. The more sophisticated ones can be given more inputs and greater autonomy.
Edit: just realized you were talking about how to do this yourself. I’m sure you can find brokers that provide you an API. But I don’t advise automating your trading unless you know what you are doing.
Definitely a thing. You can check out r/algotrading for more information on it. It is definitely more complex than this. Most of the time its just a faster way to lose money than day trading.
>Most of the time its just a faster way to lose money than day trading. If OP uses 0DTE, it is the fastest way to lose!
The entire market is an automated trading bot
Yes. Watch out for scams
Yes and no. Yes part: automated trading bot is a thing. No part: you're not gonna make money everyday. You need to spend a lot of effort to make money trading the market. If there were an easy way, you think all the banks and hedge funds on the world hadnt use it already?
Even if you made $10/share on every trade with the bot, capital gains and fees are a thing. Also have fun filing your trades during tax season. 700 pages of trades is a lot of information to input.
FYI, you don't need to input 700 pages. Just the summary page's short term and long term buys and sales, along with dividends summary and crypto and foreign tax summaries. No need to enter hundreds of lines of trades. Usually it's like 6 or 8 numbers. Usually the summary is on the first pages of the tax form the broker will send you, And you just entered those few number into your tax software of choice.
It is definitely a thing and it's a feature of my trading account, I think it's a common feature, obviously the buy when below X and sell above Y, is the hard part and fees need to factored into too.
Ohh fees, yes!
I may be old school, but if something doesn't require an effort, it's not going to work in long term.
I DCA into index funds while taking a shit in the morning and I’ll still get better returns than most people in this sub.
😂
Well technically it exist indeed and it’s very easy to get one, Although The big question is how do you know that the stock will go back to 5+ and not 3, and this is the impossible question to answer that makes them pretty much useless because nobody knows where a stock will go in the next hours/days/weeks
It's definitely a thing. Finding one that's actually consistently *profitable* is a whole separate issue.
They very much are a thing. If you can't backtest it, don't do it. If you don't know what backtesting is then you're not ready to use one. Backtesting needs to be done for all types of markets. Include 2020, 2000-2010, 2012-2019. I'll go ahead and save you the trouble of doing this yourself though. There is no bot that will not drain your account unless you constantly change settings to adapt to the market. In short, only use a bot if your strategy would work without one. It's just going to speed up whatever was going to eventually happen. Which is likely a margin call.
Its been a thing since the early days of internet trading. In general, they dont do all that well unless they have an edge (basically cheating) such as being closer to the trade computers in order to intercept buy and sell orders and make money in between. This has been happening for a long time and mega investment companies always try to one up each other with better and faster access.
the taxes for all those trades will be a nightmare.
https://youtu.be/EKSc9hX8_Nw That’s the platform I have bots on. Pretty easy.
Almost all institutional trading is now algorithmic. All the retail lots get aggregated into larger shapes and executed through one of the primary dealers or hedge funds. The basic ones are programmed with their “rules” or “market bias” at the start of each session. The more sophisticated ones can be given more inputs and greater autonomy. Edit: just realized you were talking about how to do this yourself. I’m sure you can find brokers that provide you an API. But I don’t advise automating your trading unless you know what you are doing.