Bots are all over the front page this week — so here’s the plain-words version: what one actually is, and what to ask before money moves.
the bot · one rule, run fast — only 3 rules exist
the maths · "20% a day" compounds into fairy tales
the test · 5 questions, before money moves
The 3 rules that exist
A bot is code that watches prices and places orders faster than you can click. It doesn’t predict the future — it follows one rule, over and over:
| Strategy | What it does | Where it earns | Where it bleeds |
|---|---|---|---|
| Arbitrage | Buys where it’s cheaper, sells where it’s dearer | The price gap between two exchanges | Fees, transfer time, the gap closing first |
| Market-making | Buy and sell orders at the same time, pockets the spread | The buy/sell gap, over and over | Holding coins while the price falls |
| Grid trading | Buys low, sells high, inside a range, on repeat | A sideways market | A market trending hard one way |
That’s it — a pitch that can’t sit on one of these rows is a story, not a bot.
The honest maths
“20% a day, zero risk” sounds great until you compound it:
$100 · "20% a day" · 30 days → $23,700
Anyone with returns like that wouldn’t need an audience. Real bots earn fractions of a percent per trade, many trades a day — think percent per year, fees and drawdowns included. Promising more costs nothing; that’s the tell.
The 5 questions to ask first
- Full history, losses included — downloadable, not screenshots
- Which market, which strategy? — “AI does it” isn’t an answer
- API access only — withdrawals disabled, IP whitelist on
- Your funds stay in your exchange account — you hold the keys
- All costs stated — 1% made − 0.8% fees = 0.2% kept
A fair seller passes all five gladly — price was never the problem; undisclosed promises are.
🛡️ the short version
A bot is a tool, not a money machine: it does the boring fast stuff without sleeping. It doesn’t turn $100 into a salary — and an honest seller says so before you ask.
Anyone here run one for a few months and tracked the real returns, fees and all? That spreadsheet is the rarest thing on this forum.
!