Market Manipulation & Trading Bots

in #bitcoin4 years ago

Researchers have found evidence that two trading bots, named Willie and Markus were responsible for market manipulation on the Mt Gox exchange in 2014. To make matters worse, they claim that these bots traded with Bitcoin they didn't have and sent signals of healthy market growth.
Price Manipulation in the Bitcoin Ecosystem - https://www.sciencedirect.com/science/article/pii/S0304393217301666

👍🏻Subscribe to my YouTube Channel: https://www.youtube.com/c/boxmining

👑Recommended Exchange - Binance: https://goo.gl/joe55C
🤑Trying out Kucoin - https://www.kucoin.com/#/?r=7g34u4
●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬●

💰Buy Bitcoin Through Coinbase: https://goo.gl/h1bw5v
🔒Secure your Crypto with Ledger: https://goo.gl/trBwPr

●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬●
Telegram groups:
Telegram Discussion Group: https://t.me/Boxdatamining
Telegram Announcements: https://t.me/boxminingChannel
●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬●

♨️Social:
Telegram announcements: https://t.me/boxminingChannel
Community Forums: http://forums.boxmining.com
Steemit: https://steemit.com/@boxmining
Twitter: https://twitter.com/boxmining
Facebook: https://www.facebook.com/boxmining
●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬●

Track ICOs graphically: https://icotracker.org

💪Donations (Message me for Shoutouts!):
Bitcoin : 13EvsPm3YhiCPGksQQdvQUFtsbF8FoU6Cz
Ethereum: 0x58d98516363D2A5f93CE6aB4A4a909599C3EEC3a

Website: http://boxmining.com

Sort:  

When Bitcoin price drops and being pushed down without any news or FUD, bots and manipulation really makes sense. Great post!

Here's a valuable analysis on Stellar Lumens (XLM), would love to hear what you think about this project

https://steemit.com/cryptocurrency/@benkalashnikov/stellar-lumens-xlm-analysis-80-potential-profit

Screen Shot 2018-01-23 at 00.14.54.png

me and the graphics are not compatible! Maybe @arturomdg will appreciate that much better!

Haha cool stuff!

indeed.

I think Catherine and Arturo have a thing for each other guys... lol

good to know and to be informed

my point of view this time little dip 8000$ to 7000$ then go up and break 14000$

I'm worried that the AI ​​and the advances that come from it can be both positive and extremely negative. It is becoming increasingly important to protect all electronic devices connected to the internet! Hackers have already become aware that there are a lot of money to be fetched here and the danger of being caught is not nearly as big as a hacked bank account!

as far as I am concerned, blockchain is a nearly impossible to hack technology!

Thanks very good post !!!!

Awesome Work!

Keep it up!!!

@cryptoinvestinfo

Haha

That's what I though also. The block chain can't get hacked but everything else can. We have a long way to go.

but they still are here to stay!

I guess the greatest study in life is not how things should be but how they really are. :)

Not True.. There have been vulnerabilities in crypto coins.. Block-chain implementation is still done by humans.

As I see it, the problems were about stealing the private keys, as for what is "hacking" the blockchain, you would need to hack every server that support the blockchain...

high rate transactions, btc fluctuation, is the way to make money without the trace.

is a strategy that they have yes, but most of the investors end up selling for panic, which they shouldn't :)

You're right, actually thinking about it is normal... dont worry sir

Never listen to the media then :)

haha the idea is to stay informed! :D (so no media for me!)

good girl :)

I agree don't go with the media, however the market manipulators use news to get in and out of their positions so it is good to check the news just to see whether it is being used to manipulate people currently or not.

Good news after a massive bull move is most likely the market manipulators/ whales trying to get more people to buy so that they can sell off their crypto at the new high. Bad news after a massive crash/correction is probably to help them get out of their positions.

the thing is that 99% of the news are things that we don't really need to know, you will know about something when it is really important, the rest is trash information that takes away time and energy

You say this as if "the media" is all the same, and is all equally untrustworthy.

official media :) newspaper, TV and so on.

Sure ignore TV, but newspapers and print media in general take journalism very seriously and are more reliable than TV or most of what you're likely to encounter online. WaPo, NY Times, The Guardian, Spiegel, The Economist etc. are all solid and have been doing extremely valuable work, especially in the last year. Do they make mistakes? Of course, no single source is perfect, but that's why you read more than one source.

right..see my blog on why silver (as bitcoin) is about to surge.

I guess as long as there is money to make, we will see some form of automated trading. I am not against it, but there's clearly cases of market manipulation where the bots are used to increase coins price [or lower it].

It really makes you wonder if this can be attributed to the rapid (moonshot) rise of Bitcoin.

We need efficient decentralised exchanges to prevent market manipulation by bots.

We need to get the bots on Steemit under control first!

For one, I am EXTREMELY surprised decentralized exchanges aren't more popular. I mean, WTF, with the negative history of centralized markets in mind and the fact that you run the risk of losing all your money on every centralized exchange you put money onto, what could possibly be more attractive than exchanges where you own your own keys? Why aren't they flourishing already?

Please someone explain

Decentralised exchanges can't handle as many transactions/second as centralised ones at the moment.


Here is the CEO of Binance explaining his view of the company. He ultimately would want to become a DEx but as of right now it is not possible to manage the kind of volumes Binance deals with daily.

Oh, I see! Darn it. Yeah, I imagined the problem was something like that. I'm not a programmer, neither am I up to speed about the technicalities behinds things like DEXs. I hope they solve it, and soon! Because we have the government climbing up our legs here.

Yes, but please take a look at RadarRelay. I discovered it recently and it's absolutely brilliant: the concept of "modular exchange". Basically, everybody holds crypto in their hardware wallet and only the order matching is done centrally; with many alternative matchers possible. Then the actual exchange happens wallet to wallet directly!!!

Interesting, I'll look at this exchange.

BitShare DEX can handle all Binance's volume and more without problems...

I'm all for decentralization but that's not necessarily the answer here.

What we need are exchanges that are open source and therefore publicly audit-able to prevent such blatant manipulation of the markets through shoddy engineering.

Decentralized exchanges also allow API programming. I guess they can enforce stricter rules to prevent market manipulation... and mempool spamming.

Sad true :(

Totally agree

tether does the same thing now, really. There's literally no way to prove it doesn't. Just a reason not to leave funds on an exchange.

also... buy bitshares!

Artificial intelligence and machine learning systems are taking over the whole trading... This is something we have to accept... I am not talking about a scam bots like in this case, but about all new projects rising on the market and are based on AI trading... I was writing about few of them in ICO phase during last few months...

Yep. They often stick out like a sore thumb too. People need to be extra careful when it's apparent that a bot is trading in the market.

Don't worry. These bots will cause such a great commotion in the very near future in my opinion in markets, as they have a lot to do with where prices are today already. So much of the gains in the markets over the past year have been too good to be true. These bots are great while in a decentralized system like this because they dealing with a community of people much more so than a traditional corporate venture. Manipulators with options and these scam bots will get there faces melted if they try to play these games as more people become more invested for the long haul in my opinion. I agree @kriptonoob, but there are also some other dynamics in play.

really, and how AI explains btc falling down when everyonone investing in it

Yeah bro, Hedge funds, and Wall street is trading with Quants etc, for long long time already, and they are making huge money this way. So like you say: we have to accept it, whether we like it or not....

Trading bots are rife across the crypto sphere and it’s hardly surprising as it’s still a Wild West of trading! Regulation will reduce this but will have a detrimental effect on the wider world of crypto!

How is all this “regulations” going to be implemented?

Simple. Regulate exchanges.

Great question. Govt got they hand out is all we know right now. lol

ha ha ha funny

Bitcoin traders will have to be careful. I think that these bots stimulate the general sentiment of buyers in the market.

So what you're saying here, is that the bots were two black guys from the south in the 1930's?

Lol...very good! ;-)

Thanks very good post !!!!

Awesome Work!

Keep it up!!!

@cryptoinvestinfo

Very good article thank you for the new

Bots are a serious threat to the steem community, and something needs to be done.

no surprice mt.Gox went down

Maybe we're all just trading bots when you really think about it...

Hi Michael, great post, as always. Just a quick question, what are your views on bitshares? I haven't heard your opinion about it and I would love to know :)

KILL THE BOT is what a few might say, but others could feel different...i feel... Trading bots are rather common in the bitcoin world, as very few traders have time to stare at the charts all day. Most people trade bitcoin as a way to generate passive income while working their regular day jobs. With so many people relying on trading bots, the question becomes which one can be trusted and which one should be avoided. Below is a list of known cryptocurrency trading bots, however, your mileage may vary when using them.

  1. BTCROBOT
  2. GEKKO
  3. CRYPTOTRADER
  4. ZENBOT
  5. TRADEWAVE
  6. HAASBOT
    tradebot.jpg

Where do I know that??:)

I agree, I even use a trading bot myself. However, the bots in the article are not of the same nature as the ones you list above, they were malicious and created for a devious purpose.

ha ha ha, nice pic! hilarious!

I thought it was a funny picture and had to comment!lol

....and ..
7.AutoView - https://autoview.with.pink/
8.Autonio (which will be integrated with BitShare Dex pretty soon) - https://auton.io

I believe that something similar is happening here on steemit as well. Check out this wallet.
https://steemit.com/@happychau123/transfers

Thanks for sharing

@jackytjai1984 (44) Your comment above looks very spammy.

I looked at your other comments and they are similar in style, not including any intelligent or interesting discussion about the blogger’s topic. You don’t include anything to even show the authors that you read their blog.

This reeks of insincerity and laziness. It looks like you are trying to draw attention to yourself, probably hoping for upvotes or follows.

Spam posts like this risk getting flagged.

Before you make another comment, please read some of the many excellent steemit guides. Here are some examples which are particularly relevant to you

https://steemit.com/steemit-abuse/@spaminator/updated-your-reputation-could-be-a-tasty-snack-with-the-wrong-comment

https://steemit.com/steemit/@miti/a-complete-guide-for-newcomers-and-minnows-to-avoid-a-possible-spam-and-to-write-good-comments

If you liked the blog but have nothing interesting to add, then an upvote is generally sufficient.

Come with me if you want to trade

Trading bots are messing with hard earned money of people, it is time humans take them over with Human intelligence!

totally agree ..let us not be a slave of bots..oh gezzz...

Yeh I'm hearing more and more about bots. Its getting scary in the game.

suspicions about the past Market Manipulation & Trading Bots

Nice story but what I really would do is

OK. Please upvote my comment as well. Thanks!

great post. I pray bot dont totally take over the crypto world with the increase of artificial intelligent.

You know what I don't understand: How is it Cobinhood already has bots trading when they have not opened their account API access? For the first few days, I was actually enjoying trading on Cobinhood because there were no bots. But over the last two or three weeks, I've been completely outclassed by at least one, if not two bots consistently outbidding me by one satoshi as fast as I can repost my bids/asks to top of the spread.

I don't mind bots trading and automating, but it's very obvious to me it's not a level playing ground on these exchanges!

I also asked about API access in their telegram group. Everything else was answered, and I was systematically ignored by everyone. Shady business indeed.

That's interesting info. I may go to their telegram group and ask as well.

Good to know that they are active on social media.

Death to whales and pump and dump groups .

With decentralized Exchanges things should change a little for the better.
Even though we might see a few bots there but it'll be harder for them to manipulate the markets that way.

Because of decentralization of bitcoin we actually have no one to check these kind of trading bots.

True, but any bots in a truly decentralized exchange will only be able to trade,paint candles,load orderbooks, etc with funds they actually have. Mt.Gox lost coin and credited false coins to these bot to manipulate the market. At least in true decentralization, bots would need to be actually funded. Also if you notice a bot, you can learn a bots rules, you can take advantage of them and drain THEIR funds.

Could you please make a post about how to recognise than then learn a bot's rules....I think I can see some stuff in the patterns on the exchanges, but would really appreciate it if you could flesh out this comment. C

Honestly its very difficult these days to fight a bot, as they have become more sophisticated over the years. Where in the past there were only a few rules for a bot, now there are many. The people using/coding these bots specifically make them tough to track. If you see orders of a certain value being placed and pulled and replaced at a different value, there's a good chance its a bot but not a super smart one(most use a random range; example: 20-30units instead of 25) to avoid detection. The best thing to do, in my opinion, is invest longer term, as most bots only manipulate the price in the short term, so by doing research, goin long, and avoiding fomo(fear of missing out) and fobo(fear of better offer), u can trade effectively free from bot manipulation. My opinion. There's also no guarantee, that when you learn a bots moves they won't be changed by the creator.

Correct. If you take the time to watch a bot at work, it is possible to force it to move in ways that are an advantage to you. Have to be very careful if you're not experience though.

Yeah its definitely not for the faint of heart/unskilled, as if your bot isnt programmed properly or if you miscalculated the code for the opposing bit, your funds can be easily drained. I personally do not try to trade against bots.

This could still happen. I heard they got a bunch of bitcoin stolen a long time ago and just did shady shit like trade BTC that didn't exist to drive up price and hide theft. I felt sorry for Mt Gox when I thought they were just victims, now I think they are pretty much scum

I have my suspicions about Bittrex and their obvious use of bots to manipulate the books on every coin they list. I don't have proof, but it becomes quite apparent when you sit down and watch the books for any coin on Bittrex (and other exchanges) that the weird small trades like 0.00001 BTC are not human trades.

Having said that, the bots on Steemit are getting out of control, maybe we should start with cleaning this place up and then move on to the bigger challenges.

Nice vedio I am new in crypto trading I think that I can learn alots of things from you thanks for sharing

Thanks Michael for your videos I always learn a ton from you!

Bitcoin traders will have to be careful. I think that these bots stimulate the general sentiment of buyers in the market.

Great alternativ media !!Thanks you again boxmining =)!!

I believe these bots stimulate traders' general sentiment about cryptocurrency or btc at different time interval. This really is not funny

Thanks Mr. boxmining for your informative videos.
It is great all the energy and effort you put into the cryptoworld.

  • Keep up the good work.

    And here is a referallink to get free tokens before pre-sale on this upcoming Sphere ico, enjoy.

https://steemit.com/ico/@jakob2450/sphere-new-ico-free-100-tokens-invite-friends-and-earn-sat-tokens

Yea. It has alway been hard for an ordinary people to know what exactly is happening in trading market.

Whenever new advances in technology in all forms come up, the people behind it do one thing, come up with flawless prospects give it six months to one year, and a whole new story trends online, with people scampering to safety with usernames and passwords, well while others are running others like me see it as a chance to step in and provide better alternatives.

thanks for a wonderful post of yours :D

There's many trading bots available to use on most of the major exchanges such as ProfitTrailer that costs around .03 ETH and can be used on binance etc... These are for the small fish of course, so just imagine what the big whales are utilising

What's your opinion about propping up Bitcoin by "printing" USDT (aka Tether)? Do you think it's happening?

We need to do a better job to avoid using the bots. Excellent information. Friend, thank you for sharing.

in the end it will explode soon or later

This is the best post on Steemit visit my blog and vote me

So this is fraud at the exchange itself, because how could they trade bit coin they didn't have? Or was the exchange hacked?

The greed is everywhere but if one realized there is enough for everyone the world would be a better place

Great Article. But the real question is- what can we do to stop this? The manipulators will manipulate!

just wanted to listen to this where I can learn more...

interesting for me because I'm not aware of many things like he's talking about...

I need more information about bitcoin and crypto...

attentive to this for me to be able to understand more since I started to join steemit...

Thanks!

Thank for the information,Great post!

Market is so crazy nowadays. If someone want to trade efficient,he should act like bot)))

Im happy that platforms like waves and other ico's are looking to create decentralised exchanges, They will be Huge in the future.

Wow, never knew that's what happened until now, very messed up.
That's why my wife and I carry Bot insurance.

What do you think about existing solutions regarding decentralized exchanges like GateHub (https://www.gatehub.net )?

Gatehub is a Bitcoin, Ripple, Ethereum, Ethereum Classic and Augur wallet. It also allows users to store, send and exchange these cryptocurrencies in a built-in exchange. All private keys and passwords are hashed and encrypted using industry standard algorithms, even GateHub cannot access them. Do you think this is a solution that will prevent exchanges manipulating the prices?

Thanks for this important info and hope these bots don't attack us again,

Finding all my crypto youtubers here, with the new monetization rules steem will get more traffic sooner than later

I think bots also plummeted the market a few weeks ago.

How could they trade with money they didn't had? I can't do that. Maybe it was an inside job from the trading platform.

Maybe they use other peoples btc. Say for example people leave their btc in the exchange. Then mtgox could “borrow” the btc and do whatever they feel like.and the replace it when people withdraw, trade, or sell

It could happen that someone would want to use the "borrowed" btc and didn't find it in his account and report it to the exchange. I think this is posible only with the exchanges approval...or maybe it was their bot...

So it sounds smart to use only exchanges that have insurance covered.

Can you touch that topic in one of your upcoming videos pls?

Great write up! Thanks for sharing!

I 100% agree, that both crypto and stock markets are under manipulation. Whales do wish to earn more and they are able to provide fake volume, or build up the walls in the order stack and remove them all of a sudden. In XX century whales had other tools for the manipulation (the Gekko example from the movie).

The difference is that

  • now we have the opportunity to share the information with interned and it spreads very quickly - probably that is the best regulation. Take the Bitconnect example: the community was aware that it is a scam much earlier, than some legal impact took place.
  • There is also so much agiotage and hype around the cryptomarkets and at the same time, the relative volume of the market is low, so every movement of the market is under our supervision and if we see the issue - we can make an instant impact: share the information an look for support.

For me, the voice of steemians in more trustful than any other resource and I do not feel lonely with my opinion.

Thanks for the relevant content, @boxmining!

hello :) very good information, I'm new to this platform :)

Why in every segment of life have to be people who have to cheat?

trading bots ..good if u are a lazy crypto trader :/

can you do me a favor and take a look at arcblock.
here is my post, I just need some feedback, thanks

https://steemit.com/ico/@nordin/i-need-to-know-what-you-guys-think-about-arcblock-is-it-legit-or-a-scam

Looks like bitconnect wasn't lying about their trading bot after all. Bitconnect is trying to take down the system AhHHHHHH!!lol

Nice post

Their are many trading bots trading very significant positions. The thing is most bots are basically the same trading off the same info and indicators. Bots are getting better but you can take advantage of their moves and benefit from time to time.

the vast and wide-ranging trade is a careful trade as Crypto with Ledge has a widespread free market, so we would not be surprised if crypto would have a tremendous advantage, but be careful not to lose it there is likely to be a fatal effect on Crypto itself. amazing post of success always for you

Informative, thanks for share

Yet another reason for newcomers to be careful when trying to day/swing trade on their investments. You're often playing against bots, and the key thing to understand about bots, is that they are emotionless.

Emotions have no place in investments/tradings, and they'll get you wrecked quickly if you let them control you. When trading against bots, you need to be very careful.

I've been an options trader for over 20 years. When I found cryptos to trade, I was so happy because there will be no more manipulation. When CBOE & CME decided to do Future tradings with Bitcoin, my biggest concern was...big boys are going to manipulate us. Now, the manipulation by bots! All I can say is if you believe in certain coins just hold for the long term. Thank you Michael for the great video! :)

Did the bots trigger the latest correction also?

look at my blog and see my post. i talk about what impacted the correction along with bitcoin futures expiring.

The marketbehavior in general changed I think compared to the last years , I guess bots is one reason

It's getting hard to make some profit with BTC this year

We are just starting the year. Give it a chance. Every January from 2015 has been the same and then the market explodes, do not see why this year would be any different.

What robbiethewise said, +1

Signs are lookinng promising for BTC. We are not in a bear market atm, contrary to what some might say; this is merely a bump in the road.
Promising signs include:

  • BTC:USD recently touched down on the 21WMA with a red bullish hammer.
  • BTC has just ended its correction.
  • BBs are starting to squeeze.

2018-01-21 14.12.17.png

BTC will trend sideways between 11-13k for the next week or two, after which we will see a bullrun setting a new ATH or a retest at 13-15k if the market is not saturated with enough buyers yet.

Peace my brothers.

Thanks Michael for your videos I always learn a ton from you.

Hola buen pos

Nice post