The Pros And Cons Of Automated Investment Bots

The world of investments can be very daunting. You’re risking your hard earned cash and if you make the wrong decision, you could lose out big time. But what if you didn’t have to make the tough decisions, you just had to put the money in and let somebody else handle it for you?

Like most things these days, the world of investing is changing due to the introduction of artificial intelligence, in the form of automatic trading bots. Instead of trying to anticipate the markets yourself, complex algorithms do it for you and make trades on your behalf. But is it really a good idea to let a computer decide the fate of your money? These are some of the pros and cons of using automated trading bots. 


You don’t have to do anything

Most of us don’t have time to sit there watching the markets all day long, waiting for the perfect time to make a trade. That’s fine if you opt for long term strategies but it does mean that you miss out on some big potential gains from short term trading. Automated trading bots solve that issue and give you a way to make passive income from investments that would normally require a lot of hands-on management. 

They make good decisions

Automated trading bots can analyze a lot of information and make good decisions, which reduces the risk a lot. Using an automated cryptocurrency trading service, for example, is much safer than trading volatile cryptocurrencies yourself, especially if you don’t really know what you’re doing. It’s true that automated bots don’t take risks that potentially pay off in a big way, but they will help you steadily grow your money while also managing risk. 


They aren’t personalised 

If you saw a financial advisor for help with your investments, they would speak to you about your financial situation and your long term financial goals, so they can incorporate that into your investment strategy. Although automated bots allow for some customisation, they cannot offer the same personalisation that a real advisor would. However, the technology is moving forward all the time and these features will most likely be available in the future. 

You don’t get face to face meetings 

The lack of personal interaction is an issue for some people. They don’t want to have a robot making all of their financial decisions, they want a simpler process where they can go into their advisor’s office and have a conversation with them. This is particularly helpful when things are going badly and the market has dipped. It’s common for new investors to panic and sell everything to cut their losses, even though it’s just a temporary dip. Having an advisor there to talk you down can be very useful in these situations. If you like to do things the old fashioned way and you are prone to panic and stress, an automated trading bot probably isn’t for you.  

Overall, automated trading bots are a great option for new investors, but it’s important to be aware of the limitations too. 

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Cascade of Colour is a UK Male Lifestyle blog delving in to the world of Mens Fashion and Grooming, Food, Music, Design, Tech and Travel. Want to get in touch? Drop me an email at

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