trading bot

Trading bot usage and strategies have always only been available to experienced traders and software developers. Thanks to this simple overview you can also benefit from using a trading bot to do your buying and selling for you – automagically!

Traders who use high-frequency trading bots have 3 main strategies namely Market Making(single or across multiple exchanges), Arbitrage(multiple exchanges) or Algorithmic Trading (single or multiple exchanges)

Market Making Trading Bot

This bot will keep posting limit BUY and SELL orders on a market and waits for other market participants to fill the orders. You can specify how far away from the mid-price the buy and sell’s are, the order quantity, and the update rates (cancel & create orders).

WARNING: Please exercise caution while running this strategy and set an appropriate kill switch rate. The default version of this strategy is intended to be a basic template that users can test and customize. Running the strategy with substantial capital without additional modifications may result in great losses.

Configuration Options

  • Exchange – Choose which Exchange and which Trading Pair you want to run your bot on.
  • Set your Spread – The bot will place the BUY (bid) or SELL (ask) order on a certain % away from the mid-price.
  • Minimum Spread – The bot will check every tick and cancel the active orders if an order’s spread is less than the minimum spread parameter.
  • Update Intervals – An amount in seconds, which is the duration for the placed limit orders. The limit bid and ask orders are canceled and new orders are placed according to the current mid-price and spread at this interval.
  • Order Amount – The order amount for the limit bid and ask orders. You must also ensure you have enough quote and base tokens to place the bid and ask orders. The strategy will not place any orders if you do not have sufficient balance on either side of the order.
  • Swing – This option sets the bot up to alternate between BUY and SELL orders after a fill happens.

Advanced Options

  • Order Depth Options – The number of order levels to place for each side of the order book. How much do you want to increase or decrease the order size for each additional order? The size can either increase (if set to a value greater than zero) or decrease (if set to a value less than zero) for subsequent orders after the first level. Furthermore, the order depth spread allows you to enter the price increments (as a percentage) for subsequent orders? The incremental spread increases for subsequent orders after the first level.
  • Inventory Warp – Allows the user to set and maintain a target inventory split between base and quote assets.
  • Order Fill Delay –  Allows you to decide how long to wait before placing the next set of orders in case at least one of your orders gets filled.
  • Hanging Orders – When enabled, the orders on the side opposite to the filled orders remains active, furthermore you can decide at what spread percentage (from mid-price) will hanging orders be canceled.
  • Spread Monitor – This feature will cancel any active order that falls below the value specified
  • Order Optimisations – Allows your bid and ask order prices to be adjusted based on the current top bid and ask prices in the market.
  • Include Trading Fees – Enable adding transaction costs to order price calculation.
  • External Price Sourcing – When enabled, allows users to use an external pricing source for the mid-price.

Cross Exchange Market Making

Also referred to as liquidity mirroring or exchange re-marketing. In this strategy, the bot makes markets (creates buy and sell orders) on smaller or less liquid exchanges. It does the opposite, back-to-back transaction for any filled trades on a more liquid exchange. We support API connections to iCE3, Binance, Kraken, and Bittrex.

Arbitrage Trading Bot

Aims to capture price differentials between two different exchanges (buy low on one, sell high on the other) and as a result, capture the margin as profit. We support API connections to iCE3, Binance, Kraken, and Bittrex.

Algorithmic Trading bot

Advanced programmatic trading. This is where a trader employs a very specific trading strategy and consequently, it sources its behavioural structure from past trading data.

Trading Bot Pre-Requisites (what you needed before iCE3 Autotrader came along)

  • Verified Trading Accounts at exchanges with API keys
  • Pre-Funded Assets to Trade With
  • Setup a Virtual Private Server
  • Setup Your Trading Bot Software
  • Secure Your Trading Setup
  • Monitor Your Trades

OR

What can you do with the iCE3 Trading Bot?

The iCE3 Autotrader is a managed trading bot installation uniquely configured to your own personal trading parameters. It is EASY to get started and the setup and configurations of your own trading bots are effortless. You can monitor the performance of your bot via the iCE3 Broker dashboard or you can opt to enable 3 party services such as Telegram Trader.

  • 👉Market Making
  • 👉Cross Exchange Market Making
  • 👉Arbitrage Trading

How to Start Using iCE3 Trading Bot?

The service will be rolled out and made available to AIC token holders during October 2020.  Enter your Name and Email address to join the beta testing group.

 

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Disclaimer Notice:

This article is intended to educate and should in no way be seen as investment advice or an enticement to use the ice3x.com platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.