So, is it correct that running two bots same currency and same exchange would cause coin loss?
I would like more trades at small amounts and was thinking to run on several machines to achieve this as when running with larger amounts the "change in price" must be higher to overcome the fee increase... Thanks
Um... there is so much wrong with your math... & yes, you would lose money.
What math? please elaborate? greater amounts = greater fee = greater movement needed to make a trade correct?
No. Fees are percentage based. Fee for a $100 trade with a .2% fee is is $0.20. Fees for 100 $1 trades is... any guesses...? Yep, exactly the same.
ok so how many $100.20 trades a day are u going to make given its got to move 20 cent before u trade vs 100 $1 trades w $.002 fee price only needs to move .002 befor profit begins to be made..... does this make sense?
smart a...
No, actually it does not.
If the trade fee is 0.2% then 0.4% is the minimum the price must move to accomplish a trade w/o making a loss. If the price is $100, that means it needs to drop to <$99.60 before you can trade & expect to make a profit (favorable bounce assumed).
So, lets do an exercise. Say price drops to $99.50 Your position is $100, so it is a drop of 0.5%. Having done due diligence you are confident this is a spike (not a trend), the drop is sufficient to pay your fees (>0.4%) and wish to capitalize in it. You buy, wait for the price to return to $100 and sell.
The differential is 0.5%
If you traded $1, you made one half of one cent.
If you traded $1,000 you made $5.
How much you trade had no affect on your profit points & percentages. It only affects your net profit.
To put it in your words, the market must move exactly the same amount to realize profit; regardless of amount traded.
_________clip__________
ok so how many $100.20 trades a day are u going to make given its got to move 20 cent before u trade vs 100 $1 trades w $.002 fee price only needs to move .002 befor profit begins to be made..... does this make sense? Smiley smart a...
_________clip__________
Um, no, you are confusing fee percent with market movement. Market movement as it relates to profit does not move with the fee lol.