Trading platforms that offer trading robots are mushrooming. Starting from forex trading to crypto, now more and more are offering trading robot features.
However, in fact, not a few of these platforms end up just pretending to be fraudulent and become fraudulent investments. Moreover, there are also many trading robot platforms that lure the public with large returns, minimal risk, and no need to trade at all.
Observer and investment practitioner Desmond Wira said, based on his investigations, several irregularities were found on the trading robot platform. Among other things, the high ratio of profits to losses scored by the trading robot. Though there is no absolute advantage 100%
Then, the practice of trading robots that can only be operated at certain brokers. In fact, with the Expert Advisor (EA) system, trading robots should be used by other forex brokers.
"This is exacerbated by unclear legality or broker regulations, so that when a fraud occurs, all of the user's money will be lost," Desmond said to Kontan.co.id.
Another oddity, the member get member scheme or money game a la ponzi scheme to provide profits that are used by various trading robot platforms. Logically, when the trading robot continues to be used, there is no need to use member get member .
This is considered to indicate that the robot trading platform requires money from new members for its operations, like other ponzi schemes. "I suggest staying away from these trading robot offerings as they tend to be unsafe or dangerous," he said.
Meanwhile, the Co-founder of Cryptowatch and the manager of the Duit Pintar channel Christopher Tahir added, the use of trading robots will make our account controlled by the trading robot through the Application Programming Interface (API), so the potential for security holes is very large.
Therefore, he reminded investors to use trading robots that have been tested for quality. However, investors should still know how trading robots make decisions, what risk management is, and the level of security.
"For this trading robot itself, it is like a user having an assistant who does his routine work. Its main function is to eliminate the emotional side of the trader with the aim that decisions are made objectively, not subjectively," added Christopher.
However, if the robot is issued by the related company, according to him, this will be full of conflicts of interest. Moreover, if the trading robots promise bombastic profits.
"When the calculations do not make sense for the robot provider to make a profit, then it is worth questioning its legitimacy. Sellers or marketing trading robots that promise profits like this should be prosecuted," added Christopher.