
Getting Started with Algorithmic Cryptocurrency Trading - jaynagpaul
https://jaynagpaul.com/algorithmic-crypto-trading
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brndnmtthws
If you want to lose money, this is a good way to do it.

You're better off buying what you believe in and holding it. It's easy to fit
a perfect model to historical data, but it rarely works going forward, unless
you have insider information.

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a13n
Can you expand on why you don't think algo trading with predictive algorithms
is a viable strategy?

GDAX has 0% fees on limit orders. Say you set a limit sell at +1% and a stop
loss at -1%. You could trigger a buy whenever you predict that it's >80%
likely to hit +1% before -1%.

Plug in everything you can get (trades, order book, etc) from GDAX's WebSocket
API into an RNN, and I'd guess you can be right more than you're wrong. Aka
profitable.

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adjkant
Another interesting idea is that patterns can hold if the market is mostly
being affected by bots. Especially at the micro level.

Even basic ML/AI strategies can be easily profitable with the current
volatility. It drastically reduces the risk of the HOLD strategy, and while
not necessarily the top profits, can be much safer.

I've been running various algorithms for the past 4 months with varying
success (whole system homemade in Python), all profitable.

I'd also note that as mentioned elsewhere in the thread, what algorithm is
very important. This market is like few others, and thus I have found lends
itself to very different strategies.

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a13n
See? Now there's a blog post I'd read!

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scottmsul
I was hoping to see some discussion about market-making bots or arbitrage
bots, which I know for a fact can make money. Can these kinds of prediction
bots actually beat random chance? I assumed price fluctuations mostly followed
a random walk.

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joosters
That's not really related to it being a bot, though. For any form of trading
(whether manually or through some form of automation), of course there's going
be some choice of buys & sells that return a profit.

How you choose such a profitable strategy is a huge area of discussion.
However, it's a completely different subject to the article, which is just
focused on the mechanism of running a bot.

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bigiain
> # Install NPM dependencies

> $ npm install

So we know for sure that there's not a malicious leftpad.js getting pulled in
there that looks for and exfiltrates your exchange credentials?

Yeah - I'm not going there... Not anywhere near there...

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oil7abibi
All this post is how to set up a github project. Nothing more. I’d hope to
rather see writing on portfolio management, risk management, or other
strategies.

That said, Zenbot actually provides a decent platform to start trading.

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lvturner
Thanks for this - would be nice if the article included an example on how a
strategy was built, or how to add additional ones into the framework.

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jiggunjer
I've heard of strategies where multiple accounts can collude to manipulate the
solo bots that make statistical decisions. Is this a real danger when
professional companies start getting involved in crypto?

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a13n
Hmm, just looking at GDAX's API, you aren't able to tell who's making an
order. You don't know if it's one account with ten orders, or ten accounts
with one each. So I don't see why multiple accounts would be an advantage.

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lvturner
One thing that springs to mind is that it would allow you to have POSITIONS on
both sides of the market, you could use this to create a series of small sell
orders that would lure the bots down towards a larger buy order.

You could do this by just placing orders, but I guess in some instances it
would be beneficial to be able to hold positions in both directions.

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RandomInteger4
The API let's you take positions on both sides with a single account, or
prevent yourself from self-trades by setting a flag.

EDIT: Nvm, the flag just specifies what the behavior is in the event that the
system encounters a self-trade: decrement and cancel, cancel resting, cancel
incoming, cancel both.

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locusm
This reminded me of Tradewave back in 2014, any idea what happened to it?

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senatorobama
[https://archive.is/ZvE6z](https://archive.is/ZvE6z)

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locusm
Thanks.

