Altcoins Talks - Cryptocurrency Forum

Crypto Discussion Forum => Cryptocurrency Trading => Topic started by: MrSpasybo on April 08, 2021, 03:09:09 AM

Title: Trading bot relies on social networks: new trend?
Post by: MrSpasybo on April 08, 2021, 03:09:09 AM
DOGE is a comedic meme coin, but it's currently in top 20 in terms of market cap with $7.7B cap. DOGE's bullish momentum mainly comes from TikTok social network and Elon Musk + WSB tweets, which helped it increase in price by 2900% in the past year.

(https://i.imgur.com/edZfoys.png)

In the trading world there are rumors about a few traders who wrote a trading bot that follows Elon Musk's twitter account and places a buy order when Elon Musk writes about DOGE. I think this is quite funny but it cannot be denied that if they made such a trading bot, they would have made a good profit in 2021.

Do you think trading bots that support trading by following market trends on social networks will work effectively and become popular in the future instead of trading bot based on market indicators? And does this mean manipulation within this tiny crypto market as one person's tweet can make thousands rich or poor?
Title: Re: Trading bot relies on social networks: new trend?
Post by: TomPluz on April 08, 2021, 01:03:59 PM
Certainly, that bot could have made a killing if there are people who used that when Elon Musk was then promoting Dogecoin via his Twitter account. However, this still a hit-and-miss thing because eventually the market will get used to anything that Elon Musk may say and will not anymore be responsive as before. Still, this is a good concept to explore because these days social media platforms can be spewing data that traders can use guiding their trading activities.
Title: Re: Trading bot relies on social networks: new trend?
Post by: robert20 on April 08, 2021, 02:01:39 PM
During thus bull run season simple news also afftect much impact on the market. When big people tweet about these coins it creates a fomo between especially when the market is so active during a bull run. So it is a great opportunity for the trading bots to make profits by just following news.
Title: Re: Trading bot relies on social networks: new trend?
Post by: KryptoBull on April 08, 2021, 08:05:45 PM
I never believe in trading bots because trading is human. However, if this trading bot relies on Elon tweets to create buy & sell orders, it makes sense because the DOGE price history has proven the positive effects of these tweets on DOGE prices.
At the same time, this also shows the unsustainability of the DOGE market, easy to increase and also easy to decline. This is acceptable in the early stages of the crypto market.
Title: Re: Trading bot relies on social networks: new trend?
Post by: Unbunplease on April 08, 2021, 10:51:24 PM
Trading bots are now used artificial intelligence.  In turn, artificial intelligence uses social networks for learning (and much more).  Everything is logical.
Title: Re: Trading bot relies on social networks: new trend?
Post by: zilzylian on April 08, 2021, 11:53:57 PM
A few years ago maybe a trading bot like that might not exist, but if it does exist then I agree with @cryptohype, artificial intelligence will collect all the data be it technical analysts or trends that are happening on twitter, we don't know if this works efficiently, but in the presence of such a thing, I think we can use some scaling and compare it with the TA we are used to, whether useful or not  ;)
Title: Re: Trading bot relies on social networks: new trend?
Post by: iloveyobit on April 14, 2021, 02:33:03 PM
if you notice in the past and im talking about 2017,news was a very important reason for many pumps either on bitcoin or in other altcoins but in this season that effect is nearly gone and we are not seeing those pumps that caused by news anymore so those bots will not work anymore according to my opinion..
Title: Re: Trading bot relies on social networks: new trend?
Post by: alltalk on April 14, 2021, 11:37:34 PM
Big players like Elon Musk surely can manipulate crypto prices. When he tweets something, it triggers the price of a crypto coin to pump or dump. I think we are already familiar with this matter and all experienced traders know well if an issue brings impacts on the market. Well, it is unavoidable, just try to take advantage of this new trend.
Title: Re: Trading bot relies on social networks: new trend?
Post by: ice18 on April 15, 2021, 07:29:30 AM
Quote from: MrSpasybo on April 08, 2021, 03:09:09 AM
Do you think trading bots that support trading by following market trends on social networks will work effectively and become popular in the future instead of trading bot based on market indicators? And does this mean manipulation within this tiny crypto market as one person's tweet can make thousands rich or poor?
It will always work because this twitter personalities like Elon has huge effect to his followers but this will not always work the same way the bot maybe got FOMO and trade on his own that might give you a negative result once Elon is only joking about specific coin still its risky to use bots based on tweets.