#BotOrNot

How to Identify Bot Activity:

1. Repetitive Order Patterns:

Bots tend to execute orders with identical values and regular intervals. If you notice that whenever you place an order, another one appears just above or below with a minimal difference, there’s a good chance a bot is manipulating the order book.

2. Phantom Orders:

Bots often insert large orders that quickly disappear when the price approaches. This creates a false impression of support or resistance, confusing human traders.

3. Unjustified Volume Spikes:

In thinly traded markets, a sudden increase in volume — especially if followed by an immediate reversal — may indicate automated manipulation.

4. Spoofing Manipulation:

This technique consists of creating large buy or sell orders to influence the market, but canceling them before they are executed.

5. Millisecond Execution Patterns:

If orders are executed always in exact fractions of time or volume (e.g., every 5 seconds or always 0.123 ETH), it is likely that a bot is acting.

How to Overcome Bot Activity

1. Avoid Following Immediate Flow:

In low liquidity markets, patience is your greatest weapon. Bots often try to induce impulsive trades — do not fall into this trap.

2. Split Your Orders:

Instead of placing a single large order, break it down into smaller, spaced-out lots. This reduces the chance of attracting bots that track specific volumes.

3. Take Advantage of Manipulation:

By identifying clear bot patterns, you can enter in the opposite direction of the manipulation at the right moment, especially when large "phantom" orders disappear.

4. Use "Iceberg" Orders:

This technique allows only a small fraction of your order to be visible in the order book, making it harder for bots seeking volume to manipulate the market.

5. Trade Outside of Peak Hours:

Bots are more active when volume is low. Trading during busier periods reduces their influence.