Tips for finding effective trading bots
11 / 01 / 24
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Among all the trading bots on the market, there are many fraudsters. It is necessary to research the company that sells the bots. It should be regulated, should be able to show real trading bot results and have a history backed by good customer reviews. Any company that offers results that are too good to believe is a red flag.
Here are some tips for identifying potential bots.
Stay away from cheap bots
If a vendor tells you that the bot they are selling is very profitable and at the same time indicates that it is cheap, think about it: why would anyone sell a profitable product at a very reasonable price? Such companies attract many spontaneous buyers at the same time to sell the bot and run away with the money. Avoid bots that cost $100 or less. Not that only expensive bots are legitimate, but ruling out cheaper ones will be a good start in finding an honest trading bot.
Trust real numbers, not words
Sweet words and loud promises about trading bots cannot guarantee their legitimacy. Real facts and figures are the true proof of a trading bot's real potential. Therefore, contact only those companies that can show you everything: their performance in the real market, backtesting results, annual returns and much more.
Charts and figures are enough to understand the trading bot's prospects. Reasoning full of terminology you don't understand may be designed to mislead or confuse you.
Always read reviews online
Anyone can easily find customer reviews about various shopping bots. Some of them may be fake or paid and it is quite difficult to identify genuine reviews. No matter what the company claims, the true potential can only be determined by real customer reviews. These genuine reviews can often be found on social media or forums. A reviewer without a track record may be a paid reviewer. Honest reviewers usually have a track record of genuine reviews.
Beware of false claims
Every trader knows the unpredictability of the trading market. Even if a trading bot is exceptionally powerful, it still cannot promise high returns as you may have seen on some of the websites you have come across. Some companies present websites adorned with misleading graphics and images such as large mansions, luxury cars or raining money and gold. Do not fall into the trap of these scammers, as no one can promise you significant profits.
Always choose regulated companies
If you want to be sure that you will not be scammed, always choose a company that is regulated by a reputable regulatory body. You can check with the regulators to see if the company is actually regulated by them. Also, if the company is new, there will always be doubts about its authenticity. Therefore, companies that are registered more than five years ago, regulated and have customer reviews are less likely to sell fake trading bots.
How to identify fake trading bots?
There are certain methods used to identify fake trading bots. Below is a list of some examples of these methods.
Excessive curve fitting - many trading bot manufacturers show only positive results. They constantly adjust trading rules that result in good curves. Such firms may run reports that exclude days when the strategy has shown negative results. They can also modify take profit and stop loss positions to achieve acceptable results.
Modification by backtesting - Many fraudulent companies run many random backtests until they get results they can present to convince traders to buy their bots. They use arbitrary trading rules that do not produce valid results and are just a show to attract buyers. In the end, such bots don't work and traders lose.
Keep the above points in mind when looking for bots. Also rely on your judgment and skills to find a legitimate bot. While bots cannot guarantee you that the trading results will be in your favor, they can help you achieve your trading goals.
