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XPE General Topics, page-225

  1. 665 Posts.
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    With respect to bots ...(disclaimer I know nothing)...I assume that the algorithms utilise game theory to win the game...the object of this game is to buy low as possible and sell high as possible....the objective of game theory is to anticipate how humans will react and therefore stay one step ahead....so if the bots object is to buy low then presumably it will try to manipulate humans to sell low ....the most obvious and best way to do this is to use fear and greed ....drive the price up induce greed and buying...then sell shares and drive the price down inducing fear and selling ( presumably the algo will buy more cheap than it sells at a higher price when accumulating) .... because fear trumps greed generally it wouldn't be too hard for an algorithm designed by a genius to outsmart us emotionally driven common folk....

    ...maybe the best tactic for us is to do the exact opposite of what our emotions tell us to do...that will f@#k em
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