Trading Bot Risk: Data, Execution, Costs & Account Access

Data can be late or incomplete

A strategy may depend on a specific instrument, timestamp, and price source. An interrupted feed or an unfinished candle can change the information available to a rule. A chart that looks complete does not by itself establish that every required observation arrived on time.

An order request is not an execution result

Submitted, accepted, partially filled, filled, canceled, and rejected are different states. A connection failure can also leave an order's status uncertain. Understanding which state is confirmed helps prevent the same intended action from being mistaken for multiple completed trades.

Costs and liquidity affect outcomes

Fees and expenses reduce the amount retained from investing activity. Liquidity also matters: the quoted price may only be available for a small quantity. Compare results after the relevant costs, and inspect whether a performance record includes all of them.

Protect account access

Use unique credentials and the security controls available from each service. Review the permissions of connected accounts and understand how to revoke access. Do not share recovery links or private keys in public messages.

Read performance labels carefully

A win rate does not describe the size of losses. A return calculated only on closed trades may omit an open losing position. Simulated results depend on their fill model, and a past period does not establish the outcome of a future one.

The useful question is what each number measures: which bot, which market, which period, which costs, and which confirmed records. If those definitions are unavailable, the number cannot support a reliable comparison.