Haven’t found anything on this site about automated trading. Is it permissible to use bots to automate trading with halal assets and cryptocurrencies? For example, when an asset reaches a specified price the bot will trigger a buy/sell order.
What about using a bot to automate trading with an indicator, such as RSI? For example, the bot will automatically buy the cryptocurrency Stellar ($xlm), when the RSI indicator reaches oversold. And will automatically sell when the RSI indicator reaches overbought.
Salem
Is it better to stop or put on hold all orders or bots before friday pray to make sure no order is executed during jumoat pray (و ذروا البيع)
Or there is no problem as physically we are in the mosque and we can leave algorithm running
How has your experience been with the crypto bot trading?
I’ve been using the 3commas platform with indicators like RSI, MFI, Trading View signals, I’ve had mixed success. It can generate a lot of profit but loose it all in just 1 or 2 bad trades.
I’ve been able to prevent the bad trades with more limits however the growth then becomes quite slow
Is it sharia compliant when this automated bot or algorithm also places short-trades. I know a automated bot, which trades crypto, bitcoin in particular. This bot is making long-trades, but also makes short trades and it trades with leverage. One of the owners of this company is muslim himself and told me, that the broker (bybit in this case) is not lending the assets and the leverage for the short trades with riba. He says that the broker only charges a fee from the seller because of this service he is delivering. With ‘this service’ he means te ability to make short trades on this exchange (bybit).
I truly hope you will find the oppurtinity to answer my question.
If a bot is shorting and taking on leverage in your behalf, then that would be an issue. Gaining from such an investment would be not compliant as the trade was not compliant.
Assalamu Alaikum, is using BoTs halal, like stoic app? I don’t have control of which crypto it trades, do you have any alternative bots if its not halal to use
@Mufti_Faraz_Adam i havent seen this answer anywhere but is using the fibonacci retracement to see where potential levels of support may be halal or not? Jazakallahu khayran
It is a very profitable and fully automated trading system, it is used by the plurap of professional traders.
It has 3 trading modes, you can set it to trade for you or send you buy and sell signals if you want to check the chart before opening the position.
I have the same question. A sniping bot is a bot which “snipes” new launches of crypto coins and buys up token instantly at launch which means that you are essentially one of the first ppl to buy the token. As with most launches, price goes up a lot in the first few minutes of a launch and using a sniper bot to be the first one to buy a token means that you would be able to profit a lot. Of course, it should be a shariah compliant token. However, my question is whether using such bots to be the first few people to buy a new token ethical and halal?
I found a pretty good automated trading bot.
But after few research i found that some trading pairs are not Shariah compliant and some of them are.
When I asked a guy how to avoid the haram pairs we said to me :{ I’d say, trading doesn’t not mean investing. If you buy something for trading, you are not supporting the fundamental status of that project. You just buy and sell within few minutes or hours }
What do you think about that?
i read online about ruling on trading bot in my country and the ustadz said it is not permissible because aqid in transaction must be aqil baligh and hurriyah, which is only applicable to human. And bot is only machine which does not have aqil.
And he also said this kind of transaction is close to gharar
But in other article in the same website it said that if the trader consider the bot as instrument only to help in trading then it is permissible
My question is how can i know if the bot act as aqid or as instrument?
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