Trading via an AI bot- anyone used them?
Discussion
I've been looking at speculating via an AI bot on FX markets.
My initial research from the proper financial media (not reddit or FB etc) suggests they can run a portfolio successfully but if course not without risk.
Im currently away so my findings are bit slum so far but will dive deeper when I get back home.
Does anyone have real world experience?
My initial concern is am.i techy enough to set it up correctly as I think you need the bot software, probably $1000 ish, Metatrader 5 (not sure what this is yet), and a brokers account. I would then need to get them all talking to each other somehow.
I like the idea of having a bit of a punt with something like this in the background.
Any thoughts ?
My initial research from the proper financial media (not reddit or FB etc) suggests they can run a portfolio successfully but if course not without risk.
Im currently away so my findings are bit slum so far but will dive deeper when I get back home.
Does anyone have real world experience?
My initial concern is am.i techy enough to set it up correctly as I think you need the bot software, probably $1000 ish, Metatrader 5 (not sure what this is yet), and a brokers account. I would then need to get them all talking to each other somehow.
I like the idea of having a bit of a punt with something like this in the background.
Any thoughts ?
Plenty financial journos have had some success with them but they are a tad pricey to buy and the key appears to be setting the risk reward balance right. Any profit generated today gets lost tomorrow together with your stake, too little risk and they can bounce around in a sort of up a bit down a bit fashion.
Im interested if anyone has used them except financial journalists to get user experience.
Im interested if anyone has used them except financial journalists to get user experience.
I wondered about this after watching Hannah Fry's video on OpenClaw - https://www.youtube.com/watch?v=WnzR5aOElvw
It should be simple enough to give it access to your Trading212, or whatever, account details (eek!) and let it go.
It should be simple enough to give it access to your Trading212, or whatever, account details (eek!) and let it go.
This seems like setting up a rig to pull the lever on the fruit machine to me - Probably entertaining / interesting to setup, but I’d never trust it with more than gambling budget; Any tales of massive returns I see on social media usually come from the Dubai Course instructor brigade.
Longy00000 said:
I've been looking at speculating via an AI bot on FX markets.
My initial research from the proper financial media (not reddit or FB etc) suggests they can run a portfolio successfully but if course not without risk.
Im currently away so my findings are bit slum so far but will dive deeper when I get back home.
Does anyone have real world experience?
My initial concern is am.i techy enough to set it up correctly as I think you need the bot software, probably $1000 ish, Metatrader 5 (not sure what this is yet), and a brokers account. I would then need to get them all talking to each other somehow.
I like the idea of having a bit of a punt with something like this in the background.
Any thoughts ?
Do it with paper trading account first. Test it thoroughly.My initial research from the proper financial media (not reddit or FB etc) suggests they can run a portfolio successfully but if course not without risk.
Im currently away so my findings are bit slum so far but will dive deeper when I get back home.
Does anyone have real world experience?
My initial concern is am.i techy enough to set it up correctly as I think you need the bot software, probably $1000 ish, Metatrader 5 (not sure what this is yet), and a brokers account. I would then need to get them all talking to each other somehow.
I like the idea of having a bit of a punt with something like this in the background.
Any thoughts ?
Just ask Claude ai how to do it and then follow instructions.
Hoofy said:
If you were able to create an AI bot that could make you trillions, would you sell it to the world for £50? If not £50, £500? £5,000? £50,000? Assuming, it's capable of doing its job, why not keep it and borrow £50k that you could turn into £5m in a month? 
Same logic as with people selling trading courses - if you have a money printer you'd use it yourself, you don't rent it out to other people.If someone is renting you the tool it's because that's the only good way it can actually turn a profit.
Also, anything involving FX market speculation always sets off alarms.
JoshSm said:
Hoofy said:
If you were able to create an AI bot that could make you trillions, would you sell it to the world for £50? If not £50, £500? £5,000? £50,000? Assuming, it's capable of doing its job, why not keep it and borrow £50k that you could turn into £5m in a month?
Same logic as with people selling trading courses - if you have a money printer you'd use it yourself, you don't rent it out to other people.If someone is renting you the tool it's because that's the only good way it can actually turn a profit.
The short answer is if you can’t set it up for yourself and you can’t code whatever it is you want to achieve, it’s probably best to avoid it. I know some relatively successful stock swing traders and all 3 of them tried and failed to make money over a longer period on FX.
It is the most efficient market out there and I’ve never even been tempted because the infrastructure and tech needed due to trading timescales is institutional level equipment and cost.
Add in who really knows where a currency is going on an average and as for macro calls, get that wrong and it’s wipe out.
FX is alluring because of the margin, leverage of 200 times but leverage is not edge, it just means losses accumulate quicker.
If there is a free or demo account try that but most don’t account for fees or slippage so returns appear better than they actually are.
Do not buy a bot unless you understand it as others risk tolerance may differ.
It is the most efficient market out there and I’ve never even been tempted because the infrastructure and tech needed due to trading timescales is institutional level equipment and cost.
Add in who really knows where a currency is going on an average and as for macro calls, get that wrong and it’s wipe out.
FX is alluring because of the margin, leverage of 200 times but leverage is not edge, it just means losses accumulate quicker.
If there is a free or demo account try that but most don’t account for fees or slippage so returns appear better than they actually are.
Do not buy a bot unless you understand it as others risk tolerance may differ.
I think your comments Dave have perhaps confirmed my own thoughts. I can see how a bot could work but my tech skills are perhaps not as sharp as they need to be to make it work in rhe FX markets. It was never a case In believing its a magic wand to make you rich but as a tool and mechanism to scalp trades continuously coukd be very useful but alas I just don't have the tech knowledge to make it work.
A shame really as I would live to give it a go and experiment with a piece of kit.
A shame really as I would live to give it a go and experiment with a piece of kit.
Longy00000 said:
I think your comments Dave have perhaps confirmed my own thoughts. I can see how a bot could work but my tech skills are perhaps not as sharp as they need to be to make it work in rhe FX markets. It was never a case In believing its a magic wand to make you rich but as a tool and mechanism to scalp trades continuously coukd be very useful but alas I just don't have the tech knowledge to make it work.
A shame really as I would live to give it a go and experiment with a piece of kit.
A long time ago, maybe. It was even possible to do it by hand A shame really as I would live to give it a go and experiment with a piece of kit.
:Nowadays it's just another infrastructure and talent arms race among the professionals, in the most liquid market on the planet (daily turnover in the $trillions). It would be like putting your kit car in an F1 race.
Longy00000 said:
I think your comments Dave have perhaps confirmed my own thoughts. I can see how a bot could work but my tech skills are perhaps not as sharp as they need to be to make it work in rhe FX markets. It was never a case In believing its a magic wand to make you rich but as a tool and mechanism to scalp trades continuously coukd be very useful but alas I just don't have the tech knowledge to make it work.
A shame really as I would live to give it a go and experiment with a piece of kit.
Have a look at N8N. You can set this all up yourself and run it locally - even off a decent NAS.A shame really as I would live to give it a go and experiment with a piece of kit.
Longy00000 said:
I've been looking at speculating via an AI bot on FX markets.
My initial research from the proper financial media (not reddit or FB etc) suggests they can run a portfolio successfully but if course not without risk.
Im currently away so my findings are bit slum so far but will dive deeper when I get back home.
Does anyone have real world experience?
My initial concern is am.i techy enough to set it up correctly as I think you need the bot software, probably $1000 ish, Metatrader 5 (not sure what this is yet), and a brokers account. I would then need to get them all talking to each other somehow.
I like the idea of having a bit of a punt with something like this in the background.
Any thoughts ?
My thoughts - from an investment opportunity, it is a terrible idea - save your money, you won't make anything. As a project to learn something new, you might find it interesting. My initial research from the proper financial media (not reddit or FB etc) suggests they can run a portfolio successfully but if course not without risk.
Im currently away so my findings are bit slum so far but will dive deeper when I get back home.
Does anyone have real world experience?
My initial concern is am.i techy enough to set it up correctly as I think you need the bot software, probably $1000 ish, Metatrader 5 (not sure what this is yet), and a brokers account. I would then need to get them all talking to each other somehow.
I like the idea of having a bit of a punt with something like this in the background.
Any thoughts ?
The main problem with FX trading strategies (like those you will find with metatrader), is that any 'edge' is nearly always noise/over-fit. Or it will be very regime dependent, and you won't know the regime has changed until you find any profits have been lost in a period of drawdown.
The key point is that no trader who wants to make a profit long term relies on someone's else strategy. You have to understand the reason why you think you have found an edge, why it still exists, why it hasn't already been arbitraged away, and what are the extent of any 'hidden' risks which didn't reveal themselves in your backtest. If you can't answer those questions in detail, you aren't ready to trade.
Sorry to sound negative - if I was trying to be more positive, learning a new skill, understanding more about a new technology and how markets work could be very enjoyable.
king crazy computing power b) an office full of data scientists c) the firepower to move the market d) an ultra high speed direct internet connection. I've pretty much kicked this into the long grass for the time being at least.
I've invested in the equity markets for years now but I've.also got to acknowledge that I've been holding less direct equity investments in the last year or two and more fund holdings largely because of time constraints and I think if I went into this I may well face the same issue of time and start to neglect it so I may start with best intentions but the reality is I doubt I would commit sufficient time to it.
I still think it could present some interesting opportunities in the right person's hands. Those seeing it as snakeoil magic money tree stuff i think are missing the point i was trying to raise.
Utilising an AI tool to work in the background operating within parameters you have determined and trading within a structure you've also dictated within your own strategy coukd become really useful and perhaps its not that far away ??
In any event i think i will be keeping an eye on developments and if I get bored elsewhere I may throw myself into this and see what happens
I've invested in the equity markets for years now but I've.also got to acknowledge that I've been holding less direct equity investments in the last year or two and more fund holdings largely because of time constraints and I think if I went into this I may well face the same issue of time and start to neglect it so I may start with best intentions but the reality is I doubt I would commit sufficient time to it.
I still think it could present some interesting opportunities in the right person's hands. Those seeing it as snakeoil magic money tree stuff i think are missing the point i was trying to raise.
Utilising an AI tool to work in the background operating within parameters you have determined and trading within a structure you've also dictated within your own strategy coukd become really useful and perhaps its not that far away ??
In any event i think i will be keeping an eye on developments and if I get bored elsewhere I may throw myself into this and see what happens
Longy00000 said:
...
Utilising an AI tool to work in the background operating within parameters you have determined and trading within a structure you've also dictated within your own strategy coukd become really useful and perhaps its not that far away ??...
You don't need AI to do this. You can set up bots to "run in the background operating within parameters you have determined and trading within a structure you've also dictated". I do exactly this for my living. But you still need to know what parameters, and *why* those specific parameters, and what they should produce, and when they aren't going to work. I also think you won't find easily find any edge like that in the FX market which isn't noise/overfit. Utilising an AI tool to work in the background operating within parameters you have determined and trading within a structure you've also dictated within your own strategy coukd become really useful and perhaps its not that far away ??...
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