I've been trading crypto for quite some time and I understand algorithmic trading has always been a thing, but I've never had positive sentiment around it. My current POV is that they're built around short term gains which over time, increase the amount of sell orders, especially if your trading algorithm loses money, because they'll automatically sell to stop losses.
I love challenging my own opinions with opinions from others, so I would greatly appreciate some community input on the positives algo traders provide. Yes I know Claude exists and I could ask Claude, but I want to analyze real human sentiment around the matter. Not regurgitated crypto finance training data.
The order books are currently moving so fast, it almost feels like nobody is actually trading and it's all just bots moving around their orders. What do you guys think? Should exchanges continue allowing algorithmic trading APIs? Do you think trading bots have a negative impact on order books and market caps?