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Do Trading Bot Profits Scale with Bot Count Rather Than Deposit?

Am I correct in thinking that bot profits now depend more on the number of trading bots rather than the size of the deposit as before? It seems that the greater the number of bots, the higher the overall returns, and that a 1:1 deposit allocation per bot should be enough.

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AI Analysis

The core question asks whether returns from automated trading now hinge primarily on the number of bots deployed rather than the total deposit. In reality, profitability in crypto trading bots is infl...

AI Recommendation

Do not assume profits scale linearly with bot count. Start by assessing each bot's historical performance, edge, and correlation with other bots. Allocate sufficient capital to allow sensible position...

Disclaimer

The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.

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