Hi CAT users, i will start improve tips & tricks sections starting from my private support messages inbox.
First improvements is :
- How Does a Ping-Pong Order Work?In a Ping-Pong cycle there are some factors involved :
- The User who wants to create orders
- The automatic Ping-Pong Algorithm
- The Exchange Trading system that match buyers/sellers orders
A Ping is an order of Buy or Sell Type. In case of Dynamic Algoritm is free to move (automatic-recreation if needed) according to the ping-pong algorithm parameters (ex : price limits)
A Pong is an order of Sell or Buy Type (Opposite from the original Ping type). It is created by CAT after a Trade occurs over a Ping.
The difference between Ping and Pong is that Pong have 1 more attribute that restrict the possibility about price movements and order recreation : the Reference Price.
The reference price is the price of the Trade Occurs over the Ping.
The Pong price is calculated considering Ping Trade Price + % Gain Requested By The User + Current Market Price.
Calculated price must guaranteed at least the % Gain set by the user.
This is the workflow of a Ping Pong Order. Loop is INFINITE (but of course you can set stop conditions).
USER Can Anytime Add Orders or Edit The Buy/Sell Pool.
- Buy/Sell Pool (Automatic)/Ping-Pong Order Creation (User) -> Ping -> TRADE (Reference Price) -> Pong (At least % GAIN) -> GAIN -> TOTAL (Minus Fees) IN BUY/SELL POOL
and then loop restartExplanation with Examples (for explation simplification without considering FEES and User Parameters) :
Buy/Sell Pool : Values are expressed as
, partner is the currency wich you express the Price (or Total Value)
Example : on BTC/LTC, LTC is , BTC is
Every Pool Lookup (that could occurs ever X lookups) CAT will try to use 100% of the Pool to create a new Order.
Buy Pool to create new Buy Orders
Sell Pool to create new Sell Orders
You can limit this behaviours setting Pool Limits about Qty and Pool Activations conditions.
A simple example (without considering limits and user parameters) :
Sell Pool 0.3 BTC, Best Market Sell Price is 0.00013 -> 0.3/0.00013 = 2307 new QTY -> New Sell Order will be Sell [email protected]
BUY Pool 0.01 BTC, Best Market Buy Price is 0.00012 -> 0.01/0.00012 = 83 new QTY -> New Buy Order will be Sell [email protected]
Now a Trade Occurs over your Order Sell [email protected]
Let's say it's a partial trade : Sell [email protected]
We consider a Gain of 5%
So, REFERENCE PRICE Is 0.00013 -> 0.00013 - 5% (In case of Sell Pong it will be REFERENCE PRICE + % GAIN) = 0,0001365 New Pong Price
So New Order Pong will be Sell [email protected]
When a Trade Will Occurs Over the Pong You will have a GAIN expressed by CAT as
- % (percentage difference between price)
and
(Total Orders Difference - (Buy + Sell Fees))
The TOTAL Value (Qty x Price) could be reuse (100% or Part of it) into the Buy/Sell Pool to create new PING ORDERS.
In a Ping-Pong Cycle, each order will have his indipendent "life"
Partial trades will generate more ping and more gains.
Example :
Ping Sell 1000@X
Trade 1 Sell 500@X -> PONG T1 Buy 505@Y
Trade 2 Sell 300@X -> PONG T2 Buy 303@Y
Trade 3 Sell 200@X -> PONG T3 Buy 202@Y
PONG T1 Buy 505@Y
Trade 1 Buy 200@Y -> 1 LINE OF GAIN in Gains Table
Trade 2 Buy 305@Y -> 1 LINE OF GAIN in Gains Table.
In this example, from 1 PING, 3 PONGS Are generated, and from 1 PONG 2 GAINS are generated.
Usually this happens when you have very BIG Ping Orders.
CAT will proportionally Calculate PING Fees According to Final Pong Trades.
On Final Pong Trade "Trade 1 Buy 200@Y" CAT will calculate the % Percentage of the original Ping "Trade 1 Sell 500@X" Fees.
Example :
Ping Buy 100@X -> Total Fees is 0.01
If a Final Pong will be Buy 10@X (that is 10% Qry of the original Buy) Total Fees From Ping will be 0.001 (10% of 0.01)