Poll: trading bots fail to meet crypto traders’ expectations

93% of surveyed traders do not use automated trading software due to a lack of trust in it. The data were shared by Adam Cochran, partner at Cinneamhain Ventures.

He surveyed 10,388 traders, with a combined asset base of $53.5 million.

38% of them reported that they had used trading bots at least during a trial period.

Source: Adam Cochran’s Twitter.

However, 93% of respondents who paid for a bot subscription stopped using them after a month.

Source: Adam Cochran’s Twitter.

“This is a troubling signal for software as a service (SaaS), indicating a large gap between the target audience for bots and real users,” writes Adam Cochran.

63% of respondents encountered technical issues when using automated trading software, and 29% abandoned bots due to limited functionality.

Source: Twitter Adam Cochran.

88% of traders explained their refusal to use bots by distrust of developers. 81% found them not suited to their needs, and 69% found them too technically complex.

Source: Twitter Adam Cochran.

When choosing a trading bot, users prefer solutions promoted by ‘influencers’.

Source: Twitter Adam Cochran.

On the other hand, they said such recommendations lack neutrality.

Adam Cochran noted that users are interested in automated trading, but for this they need ready-made modular scripts, trusted brands, the ability to track balances separately, and simple ways of contacting trusted members of the community.

“The market for bots is stagnating and even declining. Developers of automated software have not yet succeeded in solving the key problems, which slows bot adoption among users,” the researcher concluded.

Cochran Research by ForkLog on Scribd

In 2018, analysts at The Wall Street Journal said that trading bots shape prices in the crypto market and play a key role in pump-and-dump schemes.

For more on trading bots, read ForkLog’s special feature:

Trading bots on Bitcoin exchanges: the Holy Grail or a fool’s errand?

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