Greed – Greed is the excessive desire for profit that clouds judgment. Greedy traders may take on oversized positions or hold winners for too long hoping to squeeze out extra gains. In robot terms, greed could translate to a bot increasing its lot size on winning streaks or removing profit targets. According to Investopedia, greed can lead traders to “stay in profitable trades longer than is advisable” or buy with little research just because prices are rising. In the context of bots, greed is countered by strict rules (e.g. maximum position size and fixed TakeProfit targets) so that logic – not emotion – limits risk.

Back to Robots Glossary Index