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Offline toast

'das trader' market-maker bot discussion
« on: March 10, 2014, 05:28:59 PM »

What should a BTS X market-maker trading bot do? It's my highest-priority tool at the moment.

MVP is basically:

Input as many price feeds as you like, give each one a weight. Use these to calculate "true" price of, say, USD/XTS.
Input a spread (by %) and the bot will maintain bids/asks around the "true" price.

I'm sure someone has more experience with arbitrage bots can say what other critical features you'd need.
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline speedy

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Re: 'das trader' market-maker bot discussion
« Reply #1 on: March 10, 2014, 09:07:53 PM »
Here is what I think a market maker bot needs:

-Pull the real prices in e.g. from Yahoo finance (see my script)
-User can control the spread size he wants to offer around the real price. Lower spread is more competitive but more risky for market maker.
-Another spread value to set is around the value of BTS itself - different people could interpret that from different exchanges.
-Control what to do when an bid/ask order was transmitted that is now too generous given the new real price of the asset. e.g. The market maker bot could cancel the order (for another transaction fee) and replace at the new correct price.

Offline NewMine

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Re: 'das trader' market-maker bot discussion
« Reply #2 on: March 11, 2014, 12:47:43 AM »
Quote
What should a BTS X market-maker trading bot do?

A market maker guarantees a market. It provides liquidity.

I think the exchange itself will provide this as users set sells at "Ask" and buys at "bid". "Market" orders will trigger these and "limit" orders will be triggered by the market movement.

I think the only way for it to be successful is to hedge any position it takes. You may have to wait for derivatives to be introduced. This way you could use a concept like delta. What do I know though?

Offline toast

Re: 'das trader' market-maker bot discussion
« Reply #3 on: March 11, 2014, 01:44:53 AM »
I think the exchange itself will provide this as users set sells at "Ask" and buys at "bid".

Right, and power users would want to use a bot to place these orders... I don't want to constantly watch some charts for when XT-USD/XTS strays from USD/XTS too far
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline NewMine

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Re: 'das trader' market-maker bot discussion
« Reply #4 on: March 11, 2014, 03:10:14 AM »
I think the exchange itself will provide this as users set sells at "Ask" and buys at "bid".

Right, and power users would want to use a bot to place these orders... I don't want to constantly watch some charts for when XT-USD/XTS strays from USD/XTS too far

Is Invictus going to have accessible charts or are they going to wait for an outside source to pick it up?

 

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