On this moment there are several various types systems for electronic trading on exchanges. Firstly, these are programs for generating profit (earning money) in the market, and, secondly, auxiliary or service programs. In programs for making money, a trader or programmer, under the strict guidance of a trader, lays down certain algorithms and parameters, guided by which the robot makes transactions.

Any such algorithm must contain a unique idea, which in itself can already bring money. In addition to a unique trading idea, these can also be ordinary arbitrage transactions. As for service robots, they act as assistants for humans and do not bring any profit themselves. Well, for example, a client needs to buy a very large package valuable papers. And he needs to do this in several lots so that the impact of his purchase on the market is as unnoticeable as possible. This is what service robots are for.

According to the MICEX, at the moment there are at least one and a half dozen hyperactive trading robots operating on the stock market, which place up to 50% of all orders on the exchange. Such trading programs place more than 500 times (just think about the numbers) more orders than the average stock investor or trader. Over the past two years, the share of participation of hyperactive robots in trading has increased by 32%, and the contribution of these robots to trading volumes has increased by 6%. Impressive numbers, aren't they?

As for the MICEX currency market, there are only 3 hyperactive robots, which place 90% of all orders and form more than 20% of the trading volume. However, in the last six months the exchange has not seen the development of trading on foreign exchange market using trading robots.

If we turn to the RTS - FORTS derivatives market, then the share of robots is approximately 35-40%.

If you break it down by company, the picture is very different. Head of the Investment Division investment company Finam stated that of all clients (which is about 100,000 people), only about 2,000 use robots. However, it is people who make about 25% of trading volumes.

At the Olma company, client robots make about 70% of all transactions and operate approximately 50% of the total trading volume.

BKS once made a reservation that the vast majority use robots professional traders and the company's investor clients.

Exchanges understand that robot trading will continue to develop and therefore are working to regularly improve the level of technical support. At the current stage, almost any market participant (from a private trader to a broker) can have direct access to trading. Back in 2010, the RTS Group began transferring all markets to the new PLAZA II protocol to increase the processing speed of all ongoing transactions.

Some time ago, the MICEX began providing brokers with the opportunity to install their servers directly on the exchange, which facilitates more efficient processing of client requests. Some brokers provide their clients with special servers on which investors can place their robots. All this increases the reliability of trading, since the number of links in the “client-exchange” chain is reduced.

Let's talk about the risks of using trading robots. How much can robots influence the collapse or rise of the market? What robots can do in unscrupulous but powerful hands.

If we take the fall in quotes on stock exchanges back in 2008, Roman Goryunov (head of RTS) said that robots themselves did not have much influence on the general decline in quotes, since a trading robot is just a way of submitting orders to the exchange.

While wide-eyed people looked at the monitors and tore their hair out, the robots managed to sell their positions and even buy them back at several times cheaper. And periodically big spread between London and Moscow made arbitrageurs unusually successful.

The only thing that had an extremely negative impact on the robots was the unscheduled cessation of trading. If stops according to plan can still be programmed into the algorithm and trading can be prohibited, then both the programmers and the robots themselves are simply powerless.

I would like to remind you that a robot is not a philosopher's stone, and it cannot turn chintz into gold bars. The robot is simply a tool for implementing your trading ideas - both right and wrong.

Some market participants are in favor of introducing restrictions on the use of robots in trading. Moreover, they offer simply a bunch of options for restrictions, to say the least. This is understandable. Today, it is almost impossible to trade with your hands in the first echelon and it is already becoming difficult even in the third. There are robots everywhere. Some traders propose to introduce paid orders for robots. Well, let’s say that each market participant has the right to place 50 free orders per day. Everything above this figure is already paid. Whether it will be or not - we'll see. But the idea has a right to exist.

Just as a person has the right to exist in the world of the market.

Despite the fact that trading through a robot is in demand in markets with high liquidity or with a certain complexity (for example, you need to keep in mind a whole series of quotes, as in options), when trading securities with low liquidity, the priority still remains with the broker. Take, for example, the second or third tier of stocks - low capitalization companies are concentrated here, trading in which will still be based on personal knowledge of the liquidity of the market entry point.

However, the human brain is simply not able to retain and process the entire exchange flow of information, so robots will develop.

In any case, the robot itself does not make money - it must have a trading idea on which it can earn its own basis points, so you cannot be sure that every robot entering the market will be successful. Here, most likely, robots will repeat a page from the history of life ordinary person- some will simply leave the stage due to unprofitability. Over time, people will only engage in more global market analysis, studying the main trends and possible movements. Decide what, when and where to buy robots.

It is worth remembering that none of the types of analysis (neither fundamental nor technical) is simply capable of taking into account the most important factor in market development - the uncertainty of the future. This means that there is still a place for intuition in the market. But a robot does not and will never have this. So, gentlemen traders, we will always have work.

Cryptocurrencies continue to be an extremely interesting phenomenon of our time. Having quickly achieved popularity and become very popular, digital coins continue to be an incredibly profitable investment tool that can provide enormous profits on cryptocurrency exchanges or with long-term investments in these assets.

Now there is a systematic increase in user interest in, where it is not difficult to “catch” a good trend and very quickly make money on such price movements. This is how experienced speculators create their capital. On platforms where trading operations with Bitcoin, altcoins and other crypto-assets take place, you can make a profit by opening positions manually after analyzing the market, studying the price chart, viewing data from technical indicators etc. However, the 21st century has given the opportunity to carry out effective crypto trading automatically, through special crypto bots.

Let's take a closer look at the developing trend of automated trading of virtual currencies using special algorithms, analogues of which have long brought income to traders on the Forex market binary options, stock exchanges and others financial exchanges. Let's analyze the 8 best robots for and advisors that are recommended to be used in 2019 for

Services and bots for automating crypto trading:

Bots and platforms	Website	Price	Cryptocurrency exchanges
	3commas	from $22. Test period 3 days on the "Professional" tariff	Bitmex, Binance, Huobi YOBIT, Bittrex, BitFinex, Bitstamp, KuCoin, Poloniex, HitBTC, Cex, Coinbase Pro, OKEX
		For free. Payment using a percentage of profitable transactions	Exmo, Livecoin, Binance, Poloniex, Bitfinex, Bittrex, OKEX, HitBTC, CEX
	Cryptorg	from $30 per month depending on the tariff. There is a trial plan for 2 weeks with the ability to create one bot	Binance, Bittrex, BitFinex, KuCoin, Poloniex, HitBTC

As noted, effective trading on modern financial platforms is possible without the direct participation of a speculator in trading. This is also relevant today for cryptocurrency exchanges, where the competent use of the capabilities of cryptobots can bring a trader a stable profit.

So, cryptocurrency robot (bot) is a specially created algorithm that uses various indicators, as well as a software system (scanner) that recognizes entry points into the market and makes transactions on behalf of the user.

In such a rapidly developing segment as the crypto market, the ability to automate the trading process is in great demand. Traders with coding skills and programming knowledge can create their own crypto bots or intelligently optimize existing advisors for effective trading of digital coins. The robot will independently trade cryptographic assets, bringing income to its owner.

However, there is a significant risk here, which for some reason is persistently ignored by beginners and inexperienced crypto traders. Tens to hundreds of algorithms that automate trading in exchange instruments are now regularly made publicly available on the Internet, and nothing is known about their actual quality of work. It’s easy to make a mistake in the settings or launch an initially ineffective bot. Of course, this will lead to a quick loss of the deposit. Therefore, it is necessary to work with crypto robots carefully, first conducting multilateral tests on demo accounts.

Important! Since the cryptocurrency market, due to its popularity, immediately began to attract all sorts of scammers, a progressive increase in fraudulent cases in this area appeared modern economy. Many cybercriminals scam illiterate people different ways and cryptocurrency bots here confidently enter the top 6 fraudulent schemes.

You must always be vigilant and choose a trading advisor for crypto trading extremely carefully. Otherwise, it’s easy to pick up a virus miner, lose funds from your trading account, or simply unknowingly transfer your earned coins to a scammer!

Top 8 bots in 2019 for cryptocurrency trading

Robots and advisors that help crypto investors or traders are increasingly gaining popularity, becoming in demand in modern online business. Experts have selected 8 of the most promising, stable algorithms that can help interested users make money on crypto coins in 2019.

Revenuebot

- cloud bot for making money on top cryptocurrency exchanges. Automatic trading using the Martingale system is carried out around the clock. There is no subscription fee; only a percentage of the profit received during trading is retained. Works with platforms: Binance, Okex, etc.

Cap Club

– a platform for manual and automatic trading on the Binance and Bittrex cryptocurrency exchanges. The tools collected on the platform make trading easier and more efficient: StopLoss and TakeProfit working simultaneously; installation of personal signals; Trailing mechanisms for buying and selling; ready-made basic strategies.

A distinctive feature of the service is a visual editor with flexible parameter settings, which allows you to create strategies of any complexity and logic.

To hone your trading skills, a demo exchange is available, where you can practice trading using virtual funds, without risks or financial losses!

The free plan for Cap.Clap is not limited in time, however, it has limits on the number of strategies, API keys and notifications. In order to trade without restrictions, you can purchase a PRO tariff – $30 per month or $300 per year.

aBOT (Arbitraging)

ABOT (automatic bot) is a crypto arbitrage robot. It will help people making money on cryptocurrency arbitrage. The algorithm independently searches for cheap altcoins, purchases them, and later sells the entire number of coins at a favorable price on another cryptocurrency exchange.

To access this bot, you need to register an account in the Arbitraging.co project. There is no need to pay any commission for using the program, so trading operations can immediately generate income. The only fee charged to users on the service is a moderate transaction fee. Arbitration is completely decentralized. You can control transactions made by the robot on the blockchain.

Additionally, the Arbitraging service provides: a semi-automatic bot (MBOT), its own exchange, etc.

HaasBot

HaasBot is a complex version of a trading robot, consisting of 4 separate algorithms. The robot uses up to 500 types of digital coins in trading operations. The program was developed in 2014, but more modern options already exist. This bot has two key features - it is paid and really effective, as many traders say.

HaasBot trades on virtually all major cryptocurrency exchanges (, Gemini, BTCC, etc.). Tariffing is three-level, which is due to the different openness of functionality for the client. License cost for 3 months:

1. basic access – 0.04 BTC;
2. for advanced beginners – 0.07 BTC;
3. professional version – 0.11 BTC.

Then an extension or switch to a different tariff is required. Payment accepted cryptocurrency Bitcoin. You can compare plans and choose the one you need according to your needs.

Сryptotrader

Cryptotrader is a cloud bot for automating trading strategies without installing software. Provides the opportunity to work on all popular exchanges. The service allows you to test the operation of a trading robot in real time or on historical data.

The cost depends on the chosen plan and starts at 0.0042 BTC per month for Basic+.

Gunbot

Crypto robot Gunbot is a paid bot for automated trading of virtual currencies. This platform, first of all, attracts attention with its wide range of functional customization options, which allow you to set the maximum level of trading risk, tailor the work of the cryptocurrency bot to the trading strategy used, etc. An important nuance is the work of Gunbot on most digital coin exchanges currently operating, for example, on , Binance.

Tariff plans offered to crypto traders provide different amounts of available functionality and cost from 0.0025 BTC (the most stripped-down version) to 0.25 BTC (for professionals). Interestingly, the fee must be paid once, without additional surcharges.

Another significant advantage of the Gunbot cryptobot is an integrated set of 32 effective trading systems for decentralized coins. After testing, the user can activate any option that has proven itself worthy!

Cryptohopper

CryptoHopper is a robot for automatic trading on cryptocurrency exchanges: Huobi, Binance, Kucoin, Kraken, Poloniex, Bitfinex and others. A free 7-day plan is available to familiarize yourself with the functionality of the platform. There are 3 plans in total: starter, intermediate, professional. On the latter, arbitrage trading is available, opening 500 trades with 75 cryptocurrencies, signals, etc.

Gekko

Gekko is a free cryptobot on the GitHub web platform. The platform allows registered clients to always use a unique function to create their own cryptocurrency bot, which has open source code. Then you just need to download the program, run it on your PC, set the parameters and wait for the coins you earn.

Gekko has a lot of powerful, effective options that make it possible to optimize, correct and test trading strategies.

Disadvantages of Gekko:

1. monocurrency. Using this algorithm, you can only earn Bitcoin.
2. a small number of cryptocurrency exchanges where the bot works. Only projects available: , Bitstamp and .

Using a trading robot is not difficult. You need to create your own version of the Gekko bot and activate it. If there are no errors in the code and the correct settings are set, then automated trading of crypto assets will immediately begin to generate income.

Zenbot

Zenbot is an excellent robot for crypto trading. This bot is available for free on GitHub. The program is installed on virtually all computer operating systems and is open source. Zenbot can execute high-frequency trades and also allows for profitable cryptocurrency arbitrage.

Advantages of automated cryptocurrency trading

During its period of prosperity, the now bankrupt MT-Gox very actively used a special crypto robot, Willy, to manipulate the value of BTC coins. This trading robot was the first Bitcoin bot that actually caused Bitcoin quotes to rise and then fall. This situation occurred in 2012 – 2014, when the cryptocurrency market and all decentralized money were little known and not very popular.

Naturally, the current development of the crypto industry has completely blocked the possibility of using bots for such manipulations at the price of decentralized coins. Trading robots are mainly used to automate trading on exchanges. This introduction of algorithms is due to a good set of advantages of speculative activities carried out through cryptobots. The most significant advantages such:

• the trader does not need to constantly monitor the state of the virtual currency market and constantly calculate the moments to open positions;
• the use of crypto robots for trading digital assets eliminates the fear factor and the element of emotional state in trading decisions. Most novice crypto traders lose deposits solely due to psycho-emotional instability and due to neglect of the rules of their own trading strategy;
• cryptocurrency bot is able to clearly recognize graphic models, candlestick patterns, directions of quote movement and trend reversal points, which are often invisible to the trader;
• a well-tuned trading robot analyzes charts more efficiently, enters into more effective trades, and looks for the most optimal entry points.

The noted qualities are just an example of the usefulness of automated cryptocurrency trading. Such programs have many more advantages.

Disadvantages of cryptocurrency exchange robots

After specifying positive aspects Using bots for crypto trading is definitely worth highlighting the key disadvantages this method making money on digital coins.

The main disadvantages of cryptobots are as follows::

• strict adherence to the programmed algorithm. Any shifts, rapid deviations, short-term fluctuations and other force majeure will give the robot signals to perform trading operations. This can easily reset the deposit to zero, since orders will produce only losses;
• The work of bots is based exclusively on technical analysis data. They are unable to see cause-and-effect relationships and view the market more globally;
• Cryptobots do not have analytical thinking, emotions or feelings of fear. This is a significant disadvantage, since the loss of funds in the transaction will not stop until some signal is generated for the robot. Under certain factors, he is able to quickly drain the deposit without seeing the fatal development of the situation in a particular transaction. The trader quickly sees the danger and promptly minimizes losses.

Conclusion

On any exchange platforms, manual trading requires speculators to have excellent theoretical and practical training and a lot of time. It is necessary to have specific trading skills and knowledge of assets. On crypto exchanges, these difficult moments for beginners can be easily mitigated by using crypto trading robots. But, it is important to carry out competent testing of the purchased or taken for free algorithm for automatic crypto trading.

The widespread use of robots, in my opinion, has made any individual activity on the stock exchange completely hopeless. A single person in the market today looks like a pedestrian who has jumped onto the highway. He will probably dodge the first few cars (that is, he will carry out several successful operations). But the longer he runs along the road, the more likely it is that in the end he will definitely be hit.

Primitive extrapolation of price charts and predictions based on the pendulum nature of price movement - this is practically the entire simple arsenal of tools at his disposal.

On all world exchanges in last years Trading using algorithmic systems - robots - is actively developing. This trend also extends to Russian sites.

Brokers have mixed opinions about stock robots.

Some market participants believe that this is a good thing. Robots create additional liquidity in the market, protect investors from mistakes and increase trading efficiency, they are convinced that electronic trading is the future.

Others believe that trading through robots carries technological risks and a serious burden on Information Systems exchanges.

One way or another, the share of electronic trading on exchanges will continue to grow, but it will not be able to displace humans, because it is he who puts his ideas into the algorithms that robots implement.

EXCHANGE ROBOTS AND THEIR SCALE

There are several types of electronic trading systems on the stock exchange. For example, programs aimed at making money and auxiliary (service) algorithms.

In the first case, the trader sets certain parameters in accordance with which the robot performs operations. There must be an idea for making money inside this algorithm.

These can also be arbitrage transactions: a trading robot monitors the prices of local shares and depositary receipts for them or the prices of a futures contract and its underlying asset, and takes a position at the moment when a spread arises between them.

Service robots help carry out human will more efficiently, but they do not bring any income. For example, a client wants to buy a large package of securities, he needs to do this in several lots so that the impact on the price of the asset on the market is minimal. This is done by a service robot.

Earning algorithms are destiny smart people, who have know-how in the market. Essentially, this is the same process as investment management: a person who understands how to invest money simply describes it in the form of an algorithm. An algorithm cannot be constantly profitable or equally profitable: market conditions change, and profitability changes. The program is constantly being refined and adapted to new conditions. This is an ongoing process.

WHAT DO EXCHANGES THINK ABOUT ROBOTS

Exchanges understand that robotic trading will continue to develop, so they are working to improve the level of technological support.

Any market participant receives direct access to trading if they purchase an access gateway to the Moscow Exchange. To use a proprietary system, it must be first certified and tested.

The share of operations using algorithmic systems will continue to grow. This growth will pose a powerful challenge to exchanges as they are required to provide liquidity and minimum order response times, central counterparties and clearing organizations must ensure the reliability of trading. The growing number of robots increases the requirements for communication channels, software and server locations. This is the main topic for exchanges in the West, and now it is gaining relevance in Russia.

RISKS AND BENEFITS OF USING ROBOTS

Electronic trading brings more liquidity to the market - this is a fact on a global scale. This, of course, is not the only driver of liquidity, but it is still a driver. Robots provide liquidity, sometimes in the most critical situations, when volumes decrease and the market falls. In this situation, they support the markets.

During the crisis, some robots lost, and some even gained. While people saw the collapse in horror and did not have time to do anything, the robot managed to follow the trend in a few seconds and sell its positions, and buy them back ten times with a profit. In addition, the spreads between Moscow and London were very large at some points, so the arbitrageurs were simply happy.

The only thing that had a very bad effect on the robots was an unscheduled stop in trading. The robot can take planned trading stops into account in the algorithm and not enter positions if it predicts a market fall or growth above the limits set by the exchange, or exit them seconds before the stop.

The rise of electronic trading is bad for those who trade with their hands, says one trader who does not use robots.

In essence, the robot does the same thing as a human, just faster, because spreads in the market are narrowing, and a human simply does not have time to notice them, and the robot processes a larger amount of information in the same time.

When there were huge spreads and people were trading, they did all the same operations and could “flood” the market in the same way as robots who can do this now. Electronic trading does not add risks, because there are protective mechanisms of the market, the robots themselves and the exchange.

Algorithmic systems trade faster and are more efficient than humans at tracking their risks.

THE FATE OF A MAN ON THE EXCHANGE

Trading through robots is in demand where there is high liquidity or difficulties in maintaining a number of quotes at the same time, for example, on options.
Perhaps the development of electronic trading will affect the employment of traders - employees of brokerage departments. If we talk about clients who trade with their hands on the market, they are not going anywhere. Perhaps scalpers who perform operations manually will also “die” because robots do it more efficiently. People who have a vision are not going anywhere.

The robot does not automatically earn money - there must be an idea on which you can catch your basis points.

Many traders are already retraining as machine managers. There will probably be some category of people who will be left without work, this always happens, but there will not be any mass outflow of traders. They will be able to study in to a greater extent market analysis and study of trends rather than focusing on how and where to buy it - this will be done electronically.

Neither fundamental nor technical analysis(and robots are more related to technical analysis), nor any other one, allows us to exclude the main factor - the uncertainty of the future.

Along with the increasing popularity of algorithmic trading, many questions and doubts arise about the advisability of its use. The reasons for this fear of trading robots are different, but the main problem The problem is that traders do not fully understand what automated trading is.

Nothing unusual or incomprehensible: the robot will trade only according to the trading strategy that was incorporated into it by the creator. The trading robot will not open trades if they do not fit the conditions of the trading system. A trading robot is a trader’s personal “slave”, only incredibly obedient, he will do what he is ordered and the way he is told.

I think that in the coming years we will witness a real boom in the field of financial robots.

Robots can generate stable income for a long time. By setting your trading to automatic, you save yourself from eternally waiting for a salary, from the psychological stress of manual trading and from unnecessary risks on transactions.

Automatic trading on the stock exchange is one of the most effective strategies that allows a trader to multiply his capital several times. This type of trading occurs with the help of trading robots. A trading robot or advisor is a script designed specifically for trading platforms, which independently analyzes price movements, independently placing the necessary orders. Trading on a machine allows the market player to be distracted from trading, since the robot independently buys/sells on the market.

Why is it useful? automatic trading on the stock exchange for beginner traders? Novice traders, as a rule, make a lot of mistakes at the start, which leads to a rapid decrease in the deposit. Often these mistakes occur on emotional grounds. A trading robot has no feelings. He won't try to win back what he lost. cash, will not be subject to various emotions - this is its main advantage, due to which the use of this type of trading brings great profits. I note that the trader does not need to study all the intricacies of the market, since, again, the trading robot will do everything for him.

Before you start using it, you should understand that a trading robot is a program. The trader must independently control his trading, as well as the risks, since the trading robot used is not responsible for the safety of capital.

AUTOMATIC TRADING SYSTEM: ADVANTAGES

An automatic trading system has many advantages that justify the risks of use:

• The trader practically does not interfere with trading, which allows him to save time;
• A market player can combine manual and automated trading;
• The trading advisor constantly works according to the Forex strategy embedded in it;
• The trader, due to the fact that he practically does not sit at the monitor, minimizes the emotional stress;
• Minimal risks (use of conservative advisors).

AUTOMATIC TRADING SYSTEM: DISADVANTAGES

Automated trading on the stock exchange also has its disadvantages, some of which are significant:

• A trading robot cannot take into account the entire market situation that exists at the moment.
• It does not have the ability to use, for example, fundamental analysis;
• The fact that the robot trades according to the algorithm embedded in it also has a downside: it does not see the picture that has developed in the market.

Remember, it is necessary to monitor the robot’s trading from time to time. The trader must constantly adjust its parameters to work on different markets. After all, as was said, he does not know how to conduct various analyzes in order to independently adapt to the current situation.

WHY ROBOTS ARE WHAT YOU NEED:

You will never miss an entry point. The robot will always open a deal, “disconnecting” from emotions and getting rid of subjectivity when making a decision;
- No constant presence at the monitor is required;
- 20 minutes in the morning and evening is enough;
- The result will not be long in coming;
- Robots are not the future! Robots are already a thing.

An ordinary trader trades on 4-6 instruments maximum; for a trading robot this is mere nonsense. For example, to open a deal, you need to look at several lower time frames and the dynamics of instruments that correlate with the instrument for trading, and only after that make a decision to open a deal. Let's be honest with ourselves. A person will not be able to trade using such a strategy using many trading instruments, but for a robot this is not a problem.

A person cannot trade around the clock; he needs time to sleep, eat, and rest. You can place limit orders, but this is more like trying to shoot at a target with your eyes closed. Trading decisions need to be analyzed before they are implemented. The trading robot will do everything with ease: for this you need either an always-on computer or a server.

The robot's decision-making speed is much higher. How much will it take for a person to count 473*7341, and how much for a robot? How many actions will it take for a human to open a deal, and how many for a robot? How much time does a trader need to make a trading decision, and how much does a robot advisor need? Everything is obvious here - the robot processes information much faster, and therefore executes the algorithm very quickly.

The robot has no emotions. Everyone knows that 95% of losses in financial markets occur not because of a bad trading strategy, but because of the emotions of the trader. Underextended, overextended, entered into a trade early, “freaked out.” There are many synonyms for how you can make a loss without controlling your emotions. Since the robot cannot think, it does not have emotions.

Well, the answer to the main question is obvious – the future of financial markets lies with trading robots. Even after this comparison, many traders will remain faithful to manual trading for two simple reasons. The first one will sound something like this: this type of trading brings them income - why change anything? The second is that people are simply afraid of innovations that are not so easy to touch.

From the first moment I can say that sooner or later financial markets are fully automated, so it’s better to jump into the first carriages rather than run behind the train.

For this reason, it is worth signing up for ours. The start is very soon. In 4 weeks of online classes you will learn:

• What are the types of trading systems and ways to build a trading system
• How to create mechanical trading systems in TSLab program
• How to create trading robots and scripts
• Where to get ready-made algorithms and how to improve and test them

The cost of the course pays off in 2 months.

Hurry up to sign up while the lowest price lasts!

Regarding the second question, everything is much more complicated here, for example, when bank cards, they were very coldly received, especially by the older generation, but now almost everyone uses them. Likewise, robots will gradually enter the daily life and work of a trader—before we know it, we won’t have time to look back!

Newcomers to the stock market often confuse the concepts of “trading robots” and “auto-following strategies.”

Stock robots or signals

Trading robots– these are mechanical trading systems that, according to a certain algorithm, calculate signals for making trade transactions and carry out these operations on the stock exchange. Robots are created by those traders who have undergone extensive training, compiled a trading algorithm and tested it on past data.

Autofollowing systems– these are applications that send trading signals to user accounts according to a strategy that may not be included in the robot’s trading algorithm, but is appraisal activities any stock expert. This stock exchange specialist can make a decision based on any method of market analysis - fundamental, technical analysis or his own methodology.

Autofollowing systems can be used as experienced traders to diversify investment areas or free up their own time, and beginners.

Is it possible to write a robot for the stock market yourself?

In most cases, such algorithms are created for high-frequency trading on charts with small intervals

To learn how to develop trading robots, you need to undergo training, during which the student is taught how to create and analyze trading algorithms and introduce you to stock programming.

To choose an autofollowing strategy, it is enough to determine the acceptable risk to income ratio for yourself. Then you can choose a strategy with the necessary parameters yourself or with the help of a manager.

Learning to build trading robots (mechanical trading systems), or as it is also called algorithmic trading, is a very expensive activity. For it to pay off, you need to talk to your professors about what prior knowledge you should have. The course program often does not fully open this veil. Also give preference better courses with further support. They may cost more, but by being able to ask your trainer the questions you need, you will save on additional training.

Quotes are the main problem of an algorithmic trader

People with a mathematical mind and programming skills often contact me with questions about the relevance of creating trading robots for Russian market? Our market is young, will the robot have enough data to adequately process statistics and generate signals?

In most cases, such algorithms are created for high-frequency trading on charts with small intervals, so that enough data has already accumulated on popular securities during the existence of our market.

Unfortunately, some of them are not easy to find in trading terminals. These have to be collected bit by bit, so preparing an analytical base can take the lion’s share of an algorithmic trader’s time. This is the main problem of those for whom it is important to study the behavior of their robot in detail using history. For example, for Gazprom securities you are unlikely to find data on hourly charts earlier than 2006, since the paper migrated from site to site. And this is a huge layer of our history that could tell you how your robot will behave in crises.

As in many other industries, robots have long been on Wall Street. This is especially noticeable in stock trading, where most buying and selling today is done by algorithms. Many U.S. stock transactions today take place not on the bustling floor of the stock exchange, but in a data center in New Jersey. But there is one place where human traders continue to feel safe. This, operating for more than two centuries. This exchange has decided not to refuse human services for now.

Its several hundred traders and brokers are the face of Wall Street and a vital part of the NYSE brand, the most famous in the financial world. Any company will envy her success in the field of marketing. However, in all other parts of the world, computers completely control stock trading. And on the NYSE they play a vital role. So a reasonable question arises: is it worth keeping all these people hanging around the stock exchange floor at 11 Wall Street? Critics say it's just a front for TV cameras, like Disneyland.

"If we had to start from scratch, trading would be completely automated," says Larry Tabb, founder of the Tabb Group, a scientific consulting firm. “But I think a person in trade is still useful.”

One of the arguments in favor of preserving people is, of course, the need to produce an effect. When Evan Spiegel, Snap's chief executive, rang the bell earlier this year, surrounded by market makers in blue vests, to open his company's first trading session, every camera in the room recorded it. The commentator for this “Wall Street Super Bowl,” broadcast on CNBC to the entire world, was Jim Cramer. The software can be easily replicated and the NYSE opening bell ceremony is unique - thanks to.

There are 30 media seats in the company's sales area. Distinctive feature is also the building's iconic neoclassical façade. Stacey Cunningham Executive Director NYSE Group recognizes the importance of marketing, but says it's not all about it.

“It is possible to completely automate a market, but when human interaction disappears, value is lost,” he said. "We believe we have found the optimal combination."

Trader vs trading robot

The NYSE and Nasdaq are the only US stock markets that most Americans have heard of. In addition to them, there are more than a dozen electronic platforms, desperately fighting for their share of the market, which is estimated at $26 trillion. The NYSE's share has remained stable over the past three years at about 22%. But since 2009, due to increasing competition, it has decreased by more than 10%.

CEOs of companies whose shares are listed on the NYSE have differing opinions about the exchange's desire to preserve the human element.

Nolan Watson, Sandstorm Gold's president and director, says the availability of floor staff did not play a big role in the company's decision to list on the NYSE. According to him, the company never communicates with any of the gym's employees, so their significance is highly debatable. However, he added that inclusion in the NYSE list is very important for them, since there are volumes here, andcompanies prefer to conduct operations here. "This is the world's No. 1 stock market," he said.

In general, for companies, interacting with the people trading their shares is not a priority. Chris Westfall, vice president of Financial Executives International, says this. According to him, directors are more concerned about access to the maximum pool of investors and the confidence that regulators will not have complaints.

Human factor in stock trading

If you want to see a company that reflects a future where humans and machines work together, it would be hard to find a better example than medical robot maker Myomo. When the time came for her representatives to ring the bell for closure trading session on the NYSE, this right was granted to a female client using an orthopedic prosthetic arm created by Myomo.

Paul Gudonis, CEO The company says having floor staff and dedicated market makers were important selling points for listing on the NYSE.

Market makers receive money (rebates) in exchange for providing correct stock quotes, liquidity and orderly trading. To receive such compensation, large high-frequency trading firms (such as Virtu Financial, which also operates other stock exchanges) must place employees on the floor. There are also firms on the NYSE that carry out only electronic trading and are not market makers, but for them the rebates are smaller, since the requirements for their trading are not so strict.

Myomo director says he likes it Feedback, which he receives from Virtu about the market situation with his shares. For example, a market maker will contact a client if they notice unusually high trading volumes in a company's shares.

He calls the marketing potential of the exchange another important argument in favor of the NYSE. Myomo is a small and little-known company with a market capitalization of about $40 million. But after its symbol - MYO - appeared on the screens of the exchange floor, the stock shot up 60% only due to increased attention to it.

Trading session closing time

Another group of NYSE floor employees are brokers. They enjoy a special advantage at the end of the trading session, when the final price of the stock is established. By law, brokers in the United States are generally required to buy or sell shares on the exchange that offers the best price during the day. This can be done on any of the numerous electronic platforms. But when the market closes, trading almost entirely returns to the exchange where the particular stock is listed.

Since Nasdaq and NYSE effectively have a stock duopoly American companies, then they also hold a final auction for their shares. The same thing happens on many other major exchanges in the world, for example onand Euronext. Exchange operators usually charge higher commissions for trading during such an auction.

The closing auction is important because it is where the final official price is set that guides many asset managers. Thus, the exchange that lists a particular stock sets an important benchmark. Interestingly, many investors are in favor of maintaining such a monopoly. Although Wall Street brokers complain about having to pay more during the final auction, using other prices would create tracking error relative to the benchmark price. Increasingly, passive index-linked funds that track end-of-day prices are making a larger contribution to trading during the final auctions.

Here, too, NYSE floor staff have a special advantage: Brokers can use the d-Quote system, which gives them almost 15 minutes of extra time to adjust or add stock orders at the end of trading, which can be the most important price of the day. As one of the traders said, in the world of computerized trading, this quarter of an hour is like several months in the days of manual trading: in these 15 minutes some news can appear, or thousands of other transactions can occur.

The d-Quote system can only be accessed through a floor broker with a handheld device. This type of order is incredibly popular, which means that a significant portion of trading still requires human reaction. However, market structure experts argue that this can be done without floor staff.

"We decided not to give up the human influence," says Michael Blogrand, who oversees equity trading at the NYSE. "We want to ensure proper oversight."

The human factor is important in times of crisis. That's the view of Justine Shack, managing director and partner at Rosenblatt Securities, which has about two dozen brokers on the NYSE floor. He said that when a software error caused Knight Capital to lose $440 million in 30 minutes, floor staff manually closed the trade.

The result is obvious

Any move by the NYSE seems to result in an influx of new large IPOs. New companies from all over the world come to this exchange. Its financial flows from the IPO are approximately twice the fees of the Shanghai Exchange, which ranks second by this indicator.

Funds raised through IPO in 2017 ($ billion)

Of course, NYSE dominance is not guaranteed. The Nasdaq exchange, created in 1971, has a fairly large weight in the American market and a bell ringing ceremony in Times Square. It is a constant competitor to the NYSE in terms of IPOs. Two new technologically advanced companies also have big plans. IEX and Bats Global Markets are trying their best to undermine the positions of the NYSE and Nasdaq in the stock market. IEX is working to expand its list of stocks, and Bats has created its own alternative to the NYSE's final auctions.

Dick Grasso former head The NYSE once called the stock exchange "the greatest show on Earth." The famed exchange floor has so far refrained from introducing automation. If or when this model becomes obsolete, it will be a difficult time for the NYSE. So says Jeffrey Sprecher, director of Intercontinental Exchange, the parent company of the NYSE. Removing the national monument, with its Corinthian columns, American flags and neoclassical architecture, would be far less popular than exploring ways to preserve it.

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