Robot as an investment. Portfolio of robots.
Started: 17 Mar 2022 02:54 AM - Last Post: KellyV
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KellyV
Posts: 4
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Robot as an investment. Portfolio of robots. - posted: 17 Mar 2022 02:54 AM
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A trading robot should be considered as a kind of investment. But, unlike an investment in a stock, which has a certain final price of growth, the robot has a good profitability over a long time period and earns not only on the growth of the asset, but also in the presence of a sideways and falling market. This compares favorably with a trading robot from buying shares.
We know that the method of diversification is used to reduce the risk of investments. That is, an investor buys a certain portfolio of different assets (stocks, bonds, goods), takes shares from different industries, forms a portfolio of shares of different issuers.
In the same way, you can recruit a portfolio of trading robots. Different algorithms show different performance in the same market. Something works well in one state of the market, something in another. We cannot predict what the market will be like tomorrow. There is no need to do this — diversification of trading algorithms successfully solves this problem. The most effective way is not to look for a 100% winning trading robot, but to consider working with them as an investment. That is, invest in different algorithms, including applying these algorithms in different markets with different assets.
An important nuance: if you effectively enter or invest in a trading robot when it is in a drawdown, the probability that it will work in the future increases: the market can change its behavior, and the algorithm of the robot will become profitable on such a change.
The mistake of many traders and investors is to bet on the algorithm that has already shown good returns, but such a robot may not be lucky with the market in the future.
The use of trading robots in stock trading is an effective way for an investor. The robot reduces the psycho-emotional burden on the investor by formalizing decisions - the investor or trader gets away from the psychological burden of wrong decisions. The portfolio of robots allows you to reduce the risk of drawdown of the client's assets and increase the likelihood of successful and efficient investment.
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Moorrey
Posts: 3
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Re: Robot as an investment. Portfolio of robots. - posted: 17 Mar 2022 06:18 AM
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You are absolutely right, investing in crypto robots is smart. Because such tools are able to multiply the income of a trader several times. I suggest you learn more about cryptocurrency trading bot and how to use it correctly. Currently, most traders prefer automated trading through trading robots.
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Sceptre32
Posts: 1
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Re: Robot as an investment. Portfolio of robots. - posted: 27 Apr 2022 09:30 AM
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It is interesting that cryptocurrency traders often forget about taxes and legislation in general. My acquaintance, a trader who has been trading cryptocurrencies for over 4 years, has never paid taxes living in Europe. But apparently this "freebie" will end soon, because Europe is working on the legislative situation in cryptocurrencies. Must read article about czech republic crypto laws explained be sure to see what you can expect if you actively trade in cryptocurrencies.
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