Why don’t quantitative robots lose money (Quantitative robots are illegal)

08/20/2023 05:37 • Digital Disruptors • 70 views

Why don’t quantitative robots lose money Editor’s note: This article is from Odaily Star Daily and is authorized to be reproduced.

The most common strategy in the currency circle is to trade mainstream digital currencies such as BTC/ETH, BCH/ETC, etc. with leverage. Currently, this platform mainly has two functions: automated short selling (AMM) and automated long position. If we talked about why so many people use this method to buy USDT a few days ago, it’s because this system has been in existence for a long time. Now many investors believe that this system can be used to do some other types of products, but these products have no actual utility, so various problems will arise. Let’s explain briefly why this happens below:

1. What is an automated long position quantitative robot?

2. What is the algorithm for automated market making?

3. How does the algorithm for automated market making determine prices?

4. Under what circumstances will there be no losses?

5. How can we ensure income?

6. How to make one’s own funds appreciate in the long term?

7. When can we make money?

Are quantitative robots illegal?

Recently, the State Administration for Market Regulation conducted an investigation on a blockchain platform called “quantitative robots”. According to reports, the trading system of this platform is an automated arbitrage machine (AMM) for coin-based pricing contracts. It earns income and engages in leverage operations by depositing users’ funds into a smart contract. According to statistics, from January to December 2017, nearly 20 investment targets mainly based on digital currencies have experienced margin calls, with a total amount exceeding 3 billion yuan.

Since 2019, the question of whether “quantitative robots are illegal” has not been clearly answered by relevant departments. In mid-May of this year, the first virtual asset investment activity utilizing technologies such as big data, artificial intelligence, and blockchain-bitcoin “mining”. This time, the central bank issued the “Notice on Preventing Risks of Token Issuance and Financing”, which requires banks not to accept promissory notes or other financial products and services, prohibits the trading of various types of tokens, and prevents token speculation from causing disputes. In addition, for acts suspected of illegal issuance of token vouchers, the People’s Bank of China and relevant departments will intervene promptly for handling.

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Why don’t quantitative robots lose money (Quantitative robots are illegal)

Are quantitative robots illegal?

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