CFD

Jun 02 2021

Trading Bots vs Humans: Everything about trading accuracy

Over the past decade, we’ve seen the rise of trading bots and Quantitative Funds, and we have also seen the fall of traditional asset managers and Hedge funds. Due to these uncertainties in the market of cryptocurrency trading, trading bots are gaining much popularity. Unlike humans, crypto bots never rest and hence maintain their control over the trading all the time. However, according to certified cryptocurrency expert, it is very complicated to declare one of them as the best assistant than the other as needs and requirements vary. There are some factors we are going to explore regarding bots Vs. Humans in the field of trading accuracy.

Table of Content

Different sections for evaluating trading accuracy.
- Trading bots for retail.
- Proprietary trading bots
- Professional (Human) Investors
- Retail (Human) Investors

Advantages of trading bots
- Potential for greater performance
- Automation
- Emotionless
- Scale
- Speed and Longevity
- Consistency
- Strategy Diversity and In-built backtesting
Advantages of Human traders
- Less vulnerable to fake news
- Subjective analysis of data
- Black swan events
- Big free
Closing thoughts

When we think of trading bots vs humans, the trading accuracy can be evaluated using different settings to carry out a fair comparison. Hence, some sections that we can look through are mentioned below.

Different sections for evaluating trading accuracy:

Trading bots for retail

These bots are accessible through all the known bot platforms that you can find with a quick Google search.

Proprietary trading bots

These are developed in-house by established Hedge Funds, jotted down by extremely smart finance statisticians and professionals.

Professional Investors (Human)

The regular fund managers that you will find on the finance channels lauding their positions.

Retail Investors (Human)

These are everyone else. In the Australia and U.K, they can be seen on the CFD trading platforms.

Now, let’s look into what Bots can do for crypto trading and how they are better than humans.

Advantages of trading bots

Potential for greater performance

The best performing trading bots have shown a performance that is considerably better than the best performing humans.

Automation

Crypto bots can automatically conduct trades when a certain level has been attained at any moment of the day. They work with logic and predictability in statistics and probability theory; this strategy produces more favourable outcomes over time.

Emotionless

Bots can analyze information without any little emotion. They recognize the importance of a wide range of events and will not get attached to their positions.

Bots are proficient in processing considerably more data and in much lesser time-frames. This means they will not skip a valuable announcement on a portfolio company. Also, they can look through more companies and thus fix the risk efficiently.

Speed and Longevity

Speed lessens slippage as response time is not required and also offers arbitrage opportunities. Bots can run 24/7, which is helpful for cryptocurrencies. In contrast, Humans need to sleep, eat, and live. A human generally can work up to 40 hours a week, but a bot works 168 hours a week; thus, it can seize 4.2 times more opportunities.

Consistency

Bots are designed to be consistent when they engage in a portion of data or an announcement they will respond repeatedly in the same manner.

Strategy Diversity and In-built backtesting

As bots are capable of scaling and running at pace, they can work on various time-frames and with varied techniques that are not correlated, which decreases the risk. This is due to low P&L volatility.

Every strategy followed by bots can be backtested numerous times and in many settings automatically. This ensures that the particular strategy is working and if you should hold onto it or not. This also assists you in managing risks better.

let us see what Human traders can provide for trading accuracy over bots:

Advantages of Human traders

Less vulnerable to fake news

Sometimes, tweet manipulations can send bots into a mad chase after a specific coin or stock to then be left moving in circles when they find out the news article was not genuine. However, humans are capable of looking into the matter from a reasonable perspective.

Subjective analysis of data

In some cases, a particular piece of data won’t show the first-degree-thinking conclusion and will require in-depth research to understand the importance. Bots can look at words and overall sensitivity in many cases, but then there can be news events that they cannot respond to.

Black swan events

Humans can think rationally regarding a situation. When black swan events occur, bots tend to lose millions because it is one of those scenarios they yet have not encountered. Human traders are much better at responding to severe mispricings and even seize advantage from them.

Bots are vulnerable to errors and bugs. There have been times when crypto bots have effectively made a mistake with trade and ended up inflicting a massive money movement. Bots can also crash trades by leaving them offline for a long duration of time.

Closing thoughts

You need to understand the overall market before going forward with any decision. Factors like ease of use, price, reliability, and security are few things that you must consider before choosing trading assistance. As many trading bots can give you relief, they also can be proved ineffective if you are not knowledgeable about the generation of financial strategies.

To learn more about cryptocurrency trading and attain various courses and certifications, check out the Blockchain Council.

Trading Bots vs Humans: Everything about trading accuracy

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Apr 05 2021

CryptoSignals.org – The Best New Crypto Signals Provider for 2021

Cryptocurrency trading can be challenging even for experienced day traders. The market is extremely volatile, there are dozens of top coins to follow, and trade setups can appear and disappear in seconds.

CryptoSignals.org is a service designed to help cryptocurrency traders navigate this complex environment. This Telegram signals group offers BTC and ETH crypto signals to help members trade short-lived setups and profit from the daily movements of the cryptocurrency market.

CryptoSignals.org seeks to return 1,500 pips each month from BTC crypto signals alone. The group has quickly earned a reputation as the best new crypto signals provider for 2021.

About CryptoSignals.org

The roots of CryptoSignals.org began in 2014, when a group of traders broke into what was then still a very young cryptocurrency market. The traders saw a need for a reliable system to trade around the price of Bitcoin and built a custom trading framework that incorporates fundamental analysis, technical analysis, and artificial intelligence.

The result is a series of trading signals for BTC, ETH, LTC, and XRP that boast an overall success rate of 82%. All CryptoSignals.org trading signals are built around setups with a risk-to-reward ratio of 1:2 or 1:3 by trading in the direction of the overall market. This ensures that CryptoSignals.org is able to maximize profit potential while minimizing downside risk.

CryptoSignals.org uses a combination of strategies including scalping and swing trading to maximize opportunities for trading in different market conditions. In addition, the group’s algorithm-driven trading system is at work 24/7 since the cryptocurrency market never sleeps.

CryptoSignals.org Telegram Group

After years of development, the traders behind CryptoSignals.org are making their trading system accessible to the public through free and paid crypto signals Telegram groups.

Anyone can join CryptoSignals.org’s free crypto signals Telegram group regardless of their past cryptocurrency trading experience or their portfolio size. The free group includes 3 signals per week and you only need to enter your name, email, and phone to sign up.

The CryptoSignals.org premium Telegram group includes instant access to all of the group’s trading signals for a total of 2-3 crypto signals per day. A membership costs £35 paid monthly, £65 paid quarterly, £95 paid bi-annually, or £175 paid annually. All membership periods come with a 30-day money-back guarantee, so there’s no risk when you sign up with CryptoSignals.org.

CryptoSignals.org has also partnered with three cryptocurrency CFD brokers – Longhorn FX, Eightcap, and AvaTrade. Traders who open new accounts with these brokers get free lifetime access to the premium CryptoSignals.org Telegram signals group.

Each CryptoSignals.org trading signal includes 5 key components for traders to watch.

Trading Pair: CyrptoSignals.org trades BTC, ETH, LTC, and XRP

Long or Short: Digital currencies can be traded in either direction

Limit: The target entry price for the trade

Stop-loss: A stop-loss price to minimize downside risk

Take-profit: A target price at which to exit the trade for a profit

All signals are accompanied by a detailed explanation of the setup and an annotated chart for technical analysis, so traders have an opportunity to learn and make their own trading decisions.

Start Trading with CryptoSignals.org Today

CryptoSignals.org offers paid and free crypto signals Telegram groups for trading BTC, ETH, LTC, and XRP. The service’s trading signals have a success rate of 82% and CryptoSignals.org seeks to profit at least 1,500 pips from BTC crypto signals every month.

CryptoSignals.org – The Best New Crypto Signals Provider for 2021

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Oct 07 2020

FCA Bans Retail Crypto Derivatives Offerings Across the U.K.

There have been significant concerns in the United Kingdom over a possible ban on crypto-based derivatives for about a year. While it seemed like the government had given up on its ban aspirations, all hope appears dashed as it is now set to move forward with planned action.

Not Suitable for Retail Investors

Earlier this week, the British Financial Conduct Authority (FCA) announced in a press release that it would be banning the sale of crypto-based derivatives to retail customers. As the press release explained, the agency had conducted a consultation over their utility for retail customers, and it found that they were ill-suited for these investors.

The FCA provides several reasons for its ban, including crypto derivatives having no reliable valuation basis. The agency also highlighted its susceptibility to criminal activity and their price volatility. The agency also pointed out that retail consumers have an inadequate understanding of these derivatives, adding that they don’t have a legitimate need for such products.

As the release confirms, the ban will begin on January 6, 2021. The agency will classify any firms that trade in these derivatives as a fraudulent organization.

The prospect of banning crypto derivatives is one that the FCA has been toying with for the past two years. Back in 2018, a report from the U.K.’s Cryptoasset Task Force called for the ban of these derivatives, highlighting that exchange-traded notes (ETNs) and contracts for difference (CFD) were particularly dangerous for retail investors.

At the time, the task force explained that it had gotten several complaints about these tools and their potential for harming retail investors with little understanding of what they were. To simultaneously ensure innovation in the space and consumer protection, a ban on retail trade for these financial products would be prudent.

What Happens Now?

Last July, the FCA first proposed its derivatives ban, explaining in a document that it planned to follow up on the task force’s recommendations. In aa separate policy document explaining how the ban could work, this ban could save investors between 267 million pounds ($338 million) to as much as 451 million pounds ($570 million) every year.

While some hoped that the government could step in to provide help, all hopes were apparently dashed when Economic Secretary to the Treasury John Glen confirmed that the FCA would have the final say on the matter.

Now that the FCA has banned crypto derivatives trade, it’s only a question of what part of the industry it would choose to attack next. The FCA already published a release proposing that crypto exchanges and asset custodians be placed under annual financial crime reporting obligations. In its document, the agency explained that the information that these companies provide would help promote a data-led supervisory approach for the industry.

At the same time, such obligations could hamper these companies’ operations significantly. If history is anything to go by, it could even lead to an exodus of crypto firms if it happens. Suddenly, the U.K. looks grimmer than even the U.S. for crypto firms.

FCA Bans Retail Crypto Derivatives Offerings Across the U.K.

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Oct 06 2020

UK FCA derivatives ban signals disapproval of crypto as a whole, CoinShares exec says

Following the definitive ban of cryptocurrency derivatives in the United Kingdom, cryptocurrency companies in the country shared their thoughts on the matter with Cointelegraph.

Among the most affected is CoinShares, a U.K. company known for providing cryptocurrency exchange-traded notes, or ETNs. Unlike exchange-traded funds, ETNs do not necessarily own the underlying asset and are instead a way of tracking the returns of a particular index. When they mature, holders pay or receive the difference between the initial purchase price and the return of the underlying index.

Crypto ETNs fell under Tuesday’s broad ban by the Financial Conduct Authority, along with products like crypto futures, options, CFDs and other derivatives.

The regulators’ stated concern involves the risks that such products pose, especially since their derivative nature makes it possible to open highly risky leveraged positions. The ban does not impact direct crypto trading in any way, which remains open to retail investors and often features leverage as well, albeit with milder amplification.

However, CoinShares ETNs are completely unleveraged, or “delta 1x” in financial terms, meaning that they track the underlying prices one-to-one. Townsend Lansing, head of product at CoinShares, expressed his disappointment in the decision in a conversation with Cointelegraph:

“We are extremely disappointed by the FCA’s decision to include delta 1 ETNs in its ban on distribution of crypto derivatives to retail investors in the UK. We and many other industry participants put forward a number of reasons why such a ban would be ill-advised and would not benefit retail investors. Unfortunately, the FCA ignored those reasons, or dismissed them with little additional information.”

According to Lansing, the ban will have the opposite intended effect, as it will “simply drive UK retail investors to unregulated crypto exchanges.” He claimed that even the FCA believes these have “far fewer protections than the regulated ETNs offered by CoinShares and other providers.”

It is curious that the FCA’s ban affected a product that is arguably safer and more regulated than directly buying cryptocurrencies.

Danny Scott, CEO and Co-Founder of U.K. crypto exchange CoinCorner, told Cointelegraph that the FCA is “comfortable with [crypto] assets and seemingly have a pro stance, they’re just not comfortable with companies packaging them up in traditional trader focused products that the everyday person doesn’t understand.”

Scott added that in the company’s understanding, “this doesn’t affect Bitcoin exchanges like ourselves, but it will affect companies such as Revolut and eToro that offer a CFD rather than the asset itself.”

Lansing was nevertheless much more negative about the regulator’s efforts. “The FCA made it clear in their initial consultation and in the draft rules: they do not believe digital assets such as Bitcoin have value and therefore, they believe they are fundamentally unsuitable for investment.”

He suggested that the FCA’s retail crypto trading ban extends to the “limit of their regulatory perimeter,” which could explain why it includes ETNs despite their seemingly lower risk profile.

Nonetheless, the FCA’s previous efforts were primarily centered around upping the standard of regulatory compliance in crypto to that of the traditional finance sector. A heavy handed ban appears to be out of character for the agency, which could have opted for more nuanced restrictions to derivatives trading — for example limiting maximum leverage.

When asked if CoinShares expected the decision, Lansing replied:

“We were extensively involved in the FCA consultation process and had several meetings with the FCA in an attempt to dissuade them from banning ETNs. As a result, we could see first hand the FCA’s disapproval of the digital asset class. So, to that extent, we knew there was a meaningful probability that the FCA would enact the ban as proposed.”

He nevertheless reassured that the company is sufficiently diversified to withstand such a blow.

UK FCA derivatives ban signals disapproval of crypto as a whole, CoinShares exec says

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