How to boost the high-speed robot trading bitcoin transactions?
In many cases, investors have been able to from the algorithm (“algo”) to benefit from the transaction procedures, but these ‘trading robots’ for those interested in crypto currency has a special value.
Robot Trading (Bottrading) can reduce user error, process information more quickly, more flexibility and time for traders. But because of its nature can not be changed, it may have greater potential for development in the encryption market.
Trading Robot has been in existence for decades, as the digital process intensifies, more and more widely used in the stock market. However, the development of digital currency market is less than ten years, the scale than the more mature markets are much smaller, obviously only a little time to integrate algorithmic trading.
Crypto currency investment management company EAM chairman Tim? (TimEnneking) emphasizes the Enneking high-frequency trading in the traditional market (HFT) with different encryption currency transactions.
He told Coindesk:
“When it comes to stock HFT, Ms very subtle is very important. However, for the encryption of currency, these very small time increment completely not so important.”
By using the algorithm of transaction, investors can obtain extensive trading strategies. For example, HFT requires the use of software, because it involves a very rapid transaction.
Traders by trading robot to another strategy is the use of arbitrage — buying assets in a market, then in another market to sell at a higher price, in order to make the difference.
The lever of bitcoin trading platform Whaleclub chief operating officer PetarZivkovski said:
“Generally speaking, if arbitrage insightful, BOT trading is profitable in a short period of time.”
The lever of bitcoin trading platform BitMEX co-founder and CEO Arthur?? Hayes (ArthurHayes) said, in addition, is not only a form of arbitrage. He described several other methods.
Hayes pointed out that traders can profit from futures contract strategy. For example, they can benefit from the difference between the futures contracts and related assets, a method called futures arbitrage.
Investors can profit from the price difference of the same asset futures contracts based on transactions but in different stock exchanges.
Investors through the trading robot to another strategy is the use of the market (marketmaking).
Hayes this method will be described as “to provide a variety of digital currency spot and digital currency derivatives contracts for the sale price”, in order to “capture the difference between the sale price.
Zivkovski said, this approach involves placing limit orders, generally close to the current market price, to buy and sell orders. With the passage of time, with the price fluctuation, traders algorithm program will automatically and continuous underground orders, he (she) will be able to profit from the difference.
However, he warned that the fierce competition around this approach may make this strategy unprofitable, “especially in low mobility environment.
Fortunately, anyone can participate in the BOT transaction. Traders can use ready-made solutions, while relying on the pre made software program is dangerous. Traders pointed out that JacobEliosoff algorithm,
“You just need to buy any open and earn money machine, many others will soon buy a hand, then your profits will be reduced. Even the first profit is an illusion.”
Zivkovski said, their views on the market to configure the BOT based on those Bot trading couple might want to learn programming or find an open source.
Hayes provides a little more technical advice, stressed the crucial importance of risk management and error handling.
“Digital currency exchange does not have a standard API API to exchange some better than others. This means that the need to spend a lot of time and effort to ensure that this transaction logic can handle outages and correct calculation of portfolio risk measurement.”
Enneking said that once a trader to develop and implement his solution, you need to constantly revise. He also said:
“Algorithmic trading is not a self guided missile. You can’t let it run independently in an extended period of time.”