What is day trading and why Robobobo?

In this article, we would like to provide our perspective on the current state of the retail day trading industry and its common practices. We aim to highlight the key shortcomings of these practices and the gaps in the existing solutions.

Robobobo is a response to these challenges. We offer a philosophy of responsible trading with a focus on a scientific approach.

We are disappointed by the way that trading is perceived by many as a form of gambling, and by others as an industry where quick and easy riches can be obtained without risk.

We believe that the world of financial markets is a complex and fascinating universe that offers many opportunities but also requires a deep understanding of the risks involved. We believe that responsible and informed trading is the key to success in this field.

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What is day trading?

Financial trading generally refers to the buying and selling of financial instruments like stocks, bonds, commodities, crypto assets, and currencies with the intent of making a profit from the price fluctuations.

Day trading is a common form of trading, which involves making multiple trades within a single day to benefit from short-term price movements.

When a trader buys an asset (or opens a long position), he is hoping that the price will eventually go up so he can sell it at a profit. Similarly, a trader may sell an asset first (or opens a short position) in the hope that the price will decrease so he can buy it back at a lower price and realize a profit. In either case, traders are looking to make money of the price difference between their entry point and exit point.

Traders often use third-party services like market data and news subscriptions, analytical tools, monitoring software, etc. to make informed decisions about when to buy or sell assets.

Ultimately, financial trading is all about trying to predict which way prices will move so that profitable trades can be made.

Automated trading vs manual trading

Automated trading systems offer several advantages over manual trading.

First, they are always online and able to respond immediately to market conditions, unlike manual traders who may not always be available at the precise moment when a trading opportunity arises. This is particularly important for crypto markets that operate 24/7.

Second, automated systems are not subject to emotional influences, which can often lead to poor decision-making.

Third, automated trading systems can use sophisticated calculations and logic to spot trading signals and react within seconds, something that would take a person much longer to do.

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Due to these advantages, automated trading has become increasingly popular in recent years. However, it can also be risky if proper risk management is not implemented. It is important to thoroughly test your strategies before live trading and to implement limits and controls.

In summary, we believe that automated trading is essential in today's world to remain competitive.

Existing solutions for automated trading

Vast majority of the existing automated trading solutions are:

  • built predominantly around technical indicators and technical analysis
  • either are not suitable for users with no coding skills or have very limited functionality
  • don’t have a fully functional mobile app
  • have very limited risk management functionality
  • are not intuitive and not fun to use especially for non-expert audience

What is wrong with technical analysis?

Technical analysis is the most commonly used approach to day trading, despite a lack of evidence that it is statistically significant. The idea behind technical analysis is that past prices can predict future price movements, but there is no scientific basis for this claim. Technical analysis is often performed manually by drawing lines on a chart, which does not make sense in today's world of big data processing and advanced data analysis techniques. This approach is subjective and can lead to false signals. It also does not consider other factors such as earnings, economic data, and social media sentiment.

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It is possible that some elements of technical analysis, combined with other data sources and advanced analytical tools such as machine learning, could be profitable in the long run. However, this is not how it is typically used by traders.

Technical analysis is promoted by trading resources, financial "gurus," and exchanges/brokers because it appears "scientific" and complicated to non-expert audiences and can be used to explain any past price movements by selecting the appropriate technical indicator from a vast pool. Additionally, exchanges and brokers have a vested interest in promoting technical analysis to generate more trading signals and earn higher commissions.

What do we offer instead?

As technology continues to advance and data spreads more quickly, modern financial markets are becoming more efficient, with fewer inefficiencies that can be exploited by traders. Using known and widespread ideas and patterns is no longer sufficient to stay competitive. The only way to continuously spot patterns and inefficiencies and benefit from them is to have the most sophisticated tools and apply them to as many available data sources as possible.

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We offer a single app with an intuitive interface that includes all the key features, such as:

  • backtesting and parameters optimization
  • access to various data sources
  • AI components and tips
  • risk management tools and a risk-free testing environment, including an ongoing trading strategy competition that is available to anyone, even those without personal money invested (but with real prizes for the best performers)

What else?

We have created many predefined strategies that are available in the app and ready to be tested and used right away. They can be easily adjusted to your preferences and allow you to get familiar with the concept of algorithmic trading. We also provide video tutorials and examples, as well as articles, to guide you through the features and offer trading tips.

We believe that any activity can be fun, that even complicated technical solutions can and should be intuitive and well designed.

We avoid jargon and obscure language to remove barriers and make algorithmic trading accessible to people from all over the world. We see a future in decentralized solutions that will reduce inequalities and benefit everyone.

Join us and start your journey to the world of algorithmic trading with Robobobo!

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