Automated Bot trading

Assalamualaykum,

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.

I would love to know you’re opinions on this @Mufti_Faraz_Adam @Mufti_Billal.

Jazakallah khair

Assalaamu alaykum,

As long as everything is Shariah compliant, using a bot is not a problem in and of itself.

1 Like

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

Regards

Aoa,

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

Assalaamu alaykum,

As long as you are physically not distracted by the bot trading, you may let the trading continue during Jumuah.

Allah knows best

1 Like

AsSalaam alaykum Mufti,

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.

Thank you very much!

Kind regards

Wa alaykum salaam,

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.

Allah knows best

1 Like

Thanks for your answer @Mufti_Faraz_Adam

I went over different trading bots but found this crypto trading bot very reliable. It is very easy to setup this crypto bot (without huge trading experience) and will keep my holding in safe on significant market moves. There are many others bots on my table which are quite similar and has some buzz on the web.

  • Cryptohopper
  • 3commas
  • Stoic
    Did someone has experience with any of them?

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

I m a software engineer & one of my client wants binance future trading bot, is it permissible for me to build future trading bot? Is it halal?

@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

Hello,

Have you tried the trading robot https://fx-etrader.com ?

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.