Been looking at automated trading systems for scalping but wondering if they actually work in volatile conditions.
Anyone running bots that can handle quick entries and exits without getting caught in bad fills?
Been looking at automated trading systems for scalping but wondering if they actually work in volatile conditions.
Anyone running bots that can handle quick entries and exits without getting caught in bad fills?
Stock bots often struggle in volatile markets. Fast price changes can lead to bad fills. They work when markets are stable, but when spreads widen or liquidity drops, they fail. Execution lag is a major issue. The bot might show a good price, but by the time the order is placed, you’re getting filled much worse. This can wipe out profits quickly. Many traders end up monitoring their bots during critical times, which defeats the purpose of automation.
Tried multiple trading bots when I was starting out.
They all seemed fast enough, but the real problem is they follow common signals like everyone else. When volatility spikes, you’re not the only one trying to make a move.
I had some success with custom scripts that targeted specific gaps, but once the market caught on, they stopped working.
If you’re looking to automate, consider swing trades instead. It’s less about timing the market perfectly and more about finding reliable setups.
Most stock bots can’t execute fast enough for real scalping. They’re fine when markets are calm, but they crash and burn when volatility hits and spreads blow out. It’s all about latency - your bot spots a price, decides to trade, sends the order, and gets filled somewhere completely different. That delay destroys any edge you had. Skip the scalping and go for slightly longer timeframes where your bot can actually keep up. Use 5-minute charts instead of tick data. You’ll still have an edge, but now you can actually execute it.
Scalping bots struggle with news spikes. Slippage wipes out potential gains.
Bots work fine but forget scalping with them.
Stock bots handle the technical stuff fine, but they fall apart when everyone’s running similar setups during crazy market swings.
It’s not about speed or fills - most retail bots use the same basic strategies and pile into identical entry points.
I get better results using bots for longer trades where timing doesn’t matter as much and I can handle some slippage.