Topic: High Freq - Bot-Trading - page 2. (Read 2570 times)
I still don't know, what you want to do? Code a tradebot? I'm working on such code, so I guess it's obvious, that I find it useful.
Anybody else something to add?
Jordan-Dev. Thank you for the input so far. Makes a lot of sense.
John
John
Bot is pot of gold... with correct settings very profitable - but hard to configure correctly. Nice gamble for every minute!
I think the pot-of-gold is the stability in BTC prices that allows bigger investors to be reassured they won't be moving the price 5%-10% entering/exiting the market...
I operate multiple bots for market-making activities on Bitfinex (www.bitfinex.com)
With that in mind, they're pretty agnostic.
The goal is just provide liquidity and to narrow the spread and give traders an opportunity to trade at any given time near the mid-point in the price-spread.
HFT trading bots have all but removed any and all arbitrage in more traditional trading markets (equities, options, futures, etc.)
However, the lack of liquidity on most BTC exchanges today provides an opportunity for those interest in this type of trading to help provide liquidity at or around the current traders whom wish to trade at any given point in time.
So I'd argue the necessity of bots is less a "good/bad" thing - more of a question of "How important is liquidity?"
(and what happens when the market behaves in a way that liquidity bots aren't prepared for and they remove all their liquidity ala "Flash Crash")
With that in mind, they're pretty agnostic.
The goal is just provide liquidity and to narrow the spread and give traders an opportunity to trade at any given time near the mid-point in the price-spread.
HFT trading bots have all but removed any and all arbitrage in more traditional trading markets (equities, options, futures, etc.)
However, the lack of liquidity on most BTC exchanges today provides an opportunity for those interest in this type of trading to help provide liquidity at or around the current traders whom wish to trade at any given point in time.
So I'd argue the necessity of bots is less a "good/bad" thing - more of a question of "How important is liquidity?"
(and what happens when the market behaves in a way that liquidity bots aren't prepared for and they remove all their liquidity ala "Flash Crash")
Bot is pot of gold... with correct settings very profitable - but hard to configure correctly. Nice gamble for every minute!
I operate multiple bots for market-making activities on Bitfinex (www.bitfinex.com)
With that in mind, they're pretty agnostic.
The goal is just provide liquidity and to narrow the spread and give traders an opportunity to trade at any given time near the mid-point in the price-spread.
HFT trading bots have all but removed any and all arbitrage in more traditional trading markets (equities, options, futures, etc.)
However, the lack of liquidity on most BTC exchanges today provides an opportunity for those interest in this type of trading to help provide liquidity at or around the current traders whom wish to trade at any given point in time.
So I'd argue the necessity of bots is less a "good/bad" thing - more of a question of "How important is liquidity?"
(and what happens when the market behaves in a way that liquidity bots aren't prepared for and they remove all their liquidity ala "Flash Crash")
With that in mind, they're pretty agnostic.
The goal is just provide liquidity and to narrow the spread and give traders an opportunity to trade at any given time near the mid-point in the price-spread.
HFT trading bots have all but removed any and all arbitrage in more traditional trading markets (equities, options, futures, etc.)
However, the lack of liquidity on most BTC exchanges today provides an opportunity for those interest in this type of trading to help provide liquidity at or around the current traders whom wish to trade at any given point in time.
So I'd argue the necessity of bots is less a "good/bad" thing - more of a question of "How important is liquidity?"
(and what happens when the market behaves in a way that liquidity bots aren't prepared for and they remove all their liquidity ala "Flash Crash")
my view is that bots can do it fine, its the same as chess, theres really no need for human feelings in it, on the other hand you have to have a bot that does what you want and if your only doing a trade once or twice a week you dont really need a bot to do the actual trading most of the time, just when you are sleeping or away from the computer and a trade looks likely
the high frequency small amounts, I guess thats just an attempt to influence the market, you would need a bot for that or you would go crazy
and the link you posted, pure spam if not scam I would guess
the high frequency small amounts, I guess thats just an attempt to influence the market, you would need a bot for that or you would go crazy
and the link you posted, pure spam if not scam I would guess
Great discussion so far... 
I think it makes sense...
Hi,
Is Bot-Trading in the BTC/Crypto arena useful? Does it make any sense at all?
So far I believed bots are messing up the exchanges and influence the price??? Mostly bad...
Can somebody help me out I got no idea. What are the pro and con's if there are any.
Obviously a watchdog looking after your funds does make sense, but a feel for the markets is only for humans right?
Lot's of questions came up while I got this link in my inbox:
http://www.bitly.com/BTC-Trader
I've heard of simple MA bots, but what about if bots become more advanced?
All those very small buy & sells on MtGox (bitcoin.clarkmoody.com orderbook) don't make sense to me at all. Are those trade bots already?
Let me hear your thoughts.
Is Bot-Trading in the BTC/Crypto arena useful? Does it make any sense at all?
So far I believed bots are messing up the exchanges and influence the price??? Mostly bad...
Can somebody help me out I got no idea. What are the pro and con's if there are any.
Obviously a watchdog looking after your funds does make sense, but a feel for the markets is only for humans right?
Lot's of questions came up while I got this link in my inbox:
http://www.bitly.com/BTC-Trader
I've heard of simple MA bots, but what about if bots become more advanced?
All those very small buy & sells on MtGox (bitcoin.clarkmoody.com orderbook) don't make sense to me at all. Are those trade bots already?
Let me hear your thoughts.
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