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Function/Purpose of Market Making Bot

Posted: Tue Apr 12, 2016 1:37 pm
by lucasferrer10

I am curious as to the opinion of others on the range of values the trade amount market making bots should use.

Is the main purpose of these bots to reduce the spread in a market for other bots to profit. In which case perhaps a low trade amount would make more sense than a high amount.

How should this trade amount be calculated, in regards to the currency pair, volume of the exchange? Will I be advised to use the same mass in trade amount in BTC/USD as ETH/USD or ETH/BTC; what about for low volume *ALTCOIN/BTC in Poloniex?

Thank you for your suggestions, thoughts and comments.


Re: Function/Purpose of Market Making Bot

Posted: Tue Apr 12, 2016 2:57 pm
by Quintus

While I was making the bot I tested it allot on Poloniex ETH/BTC because of the volatility and I noticed a few things.

If the market is volatile most of the time spread it is very small. Other market making bots are active and on a few occasion we were "fighting" until the spread was 0.00000001 BTC. There goes your profit and the fee is killing you... But the benefit is that your order will be filled quickly and more often. In v3.0.22 we are introducing a offset setting. This way you can make sure you are trading with a profit to overcome the 0.15% fee and the "fights" with other bots. And this way you can setup multiple bots on the same market.

Regarding the trade amount for the bots. It really depends on the volume of the market. The best amount is just below the average amount of the current order in the orderbook. For Poloniex ETH/BTC I would keep it below 20 ETH at the moment for sure. The orderbook is quick "thin" lately and if you order are blocking the swings they wont get filled.

For BTC/USD it again depends on the market volume. Coinbase has a 0% fee for market markers, but if you look to the spread its <$0.10. This means your profit are really small and sometimes just 1 cent.

If you are willing to trade on the Chinese exchanges you can create bigger orders. 6+ BTC can be done.

So keep in mind:
- The current spread
- The current volume of the market
- The makers fee
- Other active market maker bots.

I would advise you to really start using it from v3.0.22 and up for exchanges with fee. With the offset you can really create a profit. Next to that we are adding a double order function. Create a secondary order with offset to increase your changes for profit.

Let me know if you have any other questions.

- Quintus

Re: Function/Purpose of Market Making Bot

Posted: Thu Apr 14, 2016 12:26 am
by lucasferrer10

Do I need currency in both ETH and BTC to start the bot? It is not placing the sell order initially. Should I hold 50/50 ETH/BTC

Re: Function/Purpose of Market Making Bot

Posted: Thu Apr 14, 2016 12:12 pm
by Quintus

If you set a trade amount of 50 ETH you need to have 50 ETH and +/- 1.01 BTC in your wallet. The bot will place both a buy order of 50 ETH and a sell order of 50 ETH.

I have attached a screenshot of the new market market interface in the next update (v3.0.22).

New features:
- Secondary order with same amount.
- Offset for both order so make sure if you pay fee you overcome the fee and can create a bigger profit.
- Reset timeout for the order. If the input is higher than 0 it will cancel and replace the open order after x minutes so you don't get stuck.

It doesn't want to be the first order in the orderbook anymore. The risk of losses was to great and that's not the intention of the bot.

Overall it will preform even better than the current version.

- Quintus

Re: Function/Purpose of Market Making Bot

Posted: Thu Apr 21, 2016 12:05 pm
by speedmax
I can't seem to get Polo/Bfx to work on ETH/BTC or ETH/USD market.

Fee calculation doesn't change when I set a manual Market fee (0.15% for Polo, 0.1% for BFX)

Re: Function/Purpose of Market Making Bot

Posted: Thu Apr 21, 2016 1:35 pm
by Quintus

A couple of questions:
- Which version are you running? v3.0.21 or v3.0.22?
- What is your price offset and amount?
- Does it place order and make trades?

If you set the fee on 5% and save and back on 0% and save you can see the total fee and gain change on the top right.

I have been running a MM bot on Poloniex ETH/BTC without any issues the last days.

- Quintus

Re: Function/Purpose of Market Making Bot

Posted: Sat Oct 29, 2016 8:43 am
by yseverov
Hi !
I need help! With Market Maker bot.

Question №1: I can customize the Market Maker itself here on the basis of the Trade Bot?
If yes, what settings should I use?
1) What is the indicators?
2)What is the safeties? if needed
3)What is the insurances? if needed

Question №2: Maybe you can add to your MM Bot the function of manual settings: Current Price ?

When I assume the next trend of the market, I have to wait to start work MM Bot.
I think Current price: Buy: 4819.97 CNY / Sell: 4819.97 CNY must have two positions. Automatic (it is now) and manual (you need to add).

I trade on HUOBI, a pair of BTC / CNY.
The total amount of the BTC 34 ... For example BTC 17 and 8225 CNY ...
Trade amount: 4.25 BTC
Price offset: 0.1%
Makers fee: 0
Reset time-out: 0

Secondary orders
Use secondary orders: yes
Price offset: 0.1%

In a sideways market have a profit of 150-250$ in 24 hours
But this is temporary))) I understand ... and I'm trying to understand)))

If i put Reset time-of what that value, the robot begins to trade at a loss. (If the BTC has been purchased at a high price ... and the market went down)

Waiting for your answer))