Recently, many friends have asked whether 'quantitative robots can make money passively'. As someone who has followed the trend and stepped on landmines, I must say a harsh truth: what seems like 'fully automated income' is full of pitfalls that can wipe out your principal! You must read these five fatal flaws before deciding whether to get in.
1. Historical data is a 'trap'; when a black swan arrives, everything crashes.
A painful case: During the LUNA crash in 2022, 90% of quantitative strategies set stop-losses based on 'the past year's volatility', resulting in the coin price plummeting past the 10x stop-loss line in 10 minutes, causing robots to fully liquidate without even the chance to manually close positions!
The harsh truth: Quantitative models rely entirely on 'past data' for training, but once the market encounters a black swan (such as sudden policy changes or project failures), previous patterns become invalid. At this point, robots lose even harder than manual operations—they won't 'panic', but will stubbornly follow incorrect instructions until they hit zero.
2. Code vulnerabilities = sending money to hackers! Small platforms have no guarantees.
Last year, a certain DeFi quantitative platform had a major incident: the contract code had vulnerabilities that hackers exploited to alter trading parameters, leading the robot to transfer all users' assets to the hackers' wallets. In the end, the platform ran off with the funds, and users couldn't even find anyone to protect their rights!
Don't be complacent: 99% of small quantitative platforms have code that hasn't undergone professional audits, which is equivalent to leaving a 'backdoor' for hackers. Putting in your principal may not even be about making a profit, but rather about whether you can preserve it.
3. 'Intelligence' is actually very rigid and cannot distinguish 'false signals'.
A true story from my friend: Using a certain robot for spot trading, they set it to 'sell automatically if it drops 5%', but one day the coin price rebounded by 2% before a crash— the robot mistakenly thought it was 'market recovery' and automatically added to its position. When the real crash came, they not only didn't stop the loss but also lost 30% more!
The essential problem: Robots only execute preset parameters and cannot judge 'false rebounds' or 'main force inducements' like humans do. In complex market conditions, they are not 'helpers' but 'hindrances', equivalent to 'suicidal trading'.
4. The platform takes more than you earn! Hidden costs can be deadly.
Let's do the math: A certain quantitative platform claims 'monthly returns of 10%', but in reality, you have to deduct these three expenses:
Transaction fees for each trade (20% higher than regular spot trading).
1%-3% management fee per month.
20%-30% of the profit portion goes to the platform.
When calculated, you may only end up with 5%! If you encounter a volatile market, the money you earn may not even cover the platform's transaction fees, not to mention the 'slippage loss' when the robot places bulk orders—10,000 principal could lose thousands just due to price differences during a single operation.
5. Ordinary people can't handle it! Incorrect parameter adjustments = directly handing over your funds.
I've seen the most ridiculous case: a novice copied someone else's quantitative parameters and mistakenly set the 'leverage multiple' to 100x (originally intended for 10x), and the robot automatically opened positions in the middle of the night. When they woke up, the account was directly wiped out, and they didn't even realize how they lost!
💬 Don't believe 'even beginners can play': quantitative trading requires understanding 'volatility algorithms' and 'fund management models', not just copying parameters randomly. Ordinary people adjusting parameters blindly is like crossing the street with their eyes closed; it's only a matter of time before they crash.
Lastly, let me say something from the heart:
Quantitative robots are not 'money printing machines'; they are 'tools that amplify risk'! If you really want to try, first ask yourself three questions:
Can you withstand a loss of more than 50% of your principal?
Can you understand code audit reports and optimize strategy logic yourself?
If the platform runs away, do you have the channels and ability to protect your rights?
If the answer to any of these is 'no', then don't touch it! For ordinary people wanting to manage assets in the crypto space, it's better to first learn the basics of regular investment and diversification—don't be fooled by the hype of 'fully automated profit'; being steady is better than anything.
