The way that they work is extremely complicated. I actually don't think they are using ANY trading bots just actual humans. From what I have deduced this is how it works:
Anytime you do ANYTHING on the site you need to purchase their token
When you "Invest" you have to deposit Bitcoin and then purchase their BCC token
When you cash out you have to buy their token, since they only pay out fiat, and then you can trade it out for Bitcoin
Any money given to the site is split in two, half goes into reserve and the other half goes to the "trading bot"
On a bad trading day they pay out super low interest rates from their reserve
So basically their token is always on the rise from people constantly investing and reinvesting. Not to mention all of the new people joining from the referrals. Their token is growing faster than their daily interest rate payments these days so that also keeps them afloat. Last month their token was half the price it is now so any loans made one month ago have been paid roughly 30% back while they have made 100% on the crypto gains.
Its quite a genius scheme if you ask me since its a hybrid pyramid/Ponzi/HYIP with elements of real cryptocurrency overlaid and some really good developers and a very well put together website.
RE: Is Bitconnect a Scam?