Can Automated Trading Bots Truly Generate Profits?

A more practical approach to trading is to utilize automated trading as a tool. Simply put, if your strategic thinking cannot generate profits, automating it becomes futile. Automation serves to systematize and clarify strategic thinking, enhancing your ability to measure the relationship between factors and reducing emotional impact during real-time trading. It acts as scaffolding but cannot replace your own decision-making capabilities.

Strategic thinking forms the core of automated trading robots. It is advisable for traders to acquire extensive knowledge in automated trading. This is because the majority of investors in the market engage in subjective types of transactions. It is not to say that subjective trading is ineffective, but rather that the attribution of investment performance in subjective trading often becomes blurred, be it due to logical reasoning or sheer luck.

Why do many traders end up being deceived in the investment market? Investment cognition is one aspect, and attribution error is another important factor. For instance, during a bull market, novice traders often make significant profits inexplicably. However, such earnings are often heavily influenced by luck. Relying on intuition and past experiences makes it challenging to distinguish whether the success is a result of logical reasoning or merely good fortune.

An automated trading robot aims to refine investment ideas and trading experiences and transform them into an easily executable tool. When mistakes occur, you can identify the source of the logical error. When you are correct, you can pinpoint where your analysis went right. Accurate attribution allows you to control your trading performance and subsequently optimize and enhance your trading strategies.

In conclusion, the ability of an automated trading robot to generate stable profits depends heavily on the trading cognition of the strategy designer, as well as the adherence of the user to the trading strategy.