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I do this with cryptocurrency (ethereum and bitcoin) with what is now quite a lot of money, but I've pulled most of it out recently since this run cannot last.

I do this with cryptocurrency (ethereum and bitcoin) with what is now quite a lot of money, but I've pulled most of it out recently since this run cannot last. It will correct and people will lose lots of money. Except for that, I will warn you that what is illegal HFT on the stock exchange is now happening on the crypto exchanges. It is exceptionally challenging. Now, for my part, that's also part of the reward. But don't say I didn't warn you. You could get started pretty easily with the GDAX API, just to point you in the right direction.

mamcx 9y ago
Yeah, I get the API part (i'm with kraken) but not the strategy part. I know how program, but not how build an strategy. Where I can learn this?
- fapjacks 9y ago
  This is tough. I would suggest looking through Github for some basic algotrading bot repos. This will give you a real basic foundation for strategy. Besides that, the way I learned my strategies was to sit, for hours, in front of GDAX and watch trading like television, and make all my trades manually, taking notes (incidentally, I picked up this learning method by teaching myself networking by sitting and watching tcpdump and later Ethereal/Wireshark). Once I'd developed a fairly straightforward trading strategy, I implemented it. From there, it was just iterative until I had something I felt could trade unsupervised. I still am fairly OCD about checking in on it when it's trading lots of money. Your strategy will change in interesting ways as you scale up the amount you are trading: Being an invisible small fish is pretty easy, but once you start having an effect on the price -- even in small ways, like some kind of "less small fish" -- you'll find that it also affects other traders (read: bots). Manipulating other bots is what a significant proportion of cryptocurrency trading strategies seems to be a fairly popular thing to do.
SirLJ 9y ago
Do you have any links about the manipulations? I would love to share them with some of my friends... Thanks!
- fapjacks 9y ago
  Well, for one, spoofing is absolutely probably the most common bot trading strategy in use on any crypto exchange. You really can't trust the order book too much except for major support/resistance levels, because everybody's spoofing. Just an example.

mamcx 9y ago

Yeah, I get the API part (i'm with kraken) but not the strategy part. I know how program, but not how build an strategy. Where I can learn this?

fapjacks 9y ago
This is tough. I would suggest looking through Github for some basic algotrading bot repos. This will give you a real basic foundation for strategy. Besides that, the way I learned my strategies was to sit, for hours, in front of GDAX and watch trading like television, and make all my trades manually, taking notes (incidentally, I picked up this learning method by teaching myself networking by sitting and watching tcpdump and later Ethereal/Wireshark). Once I'd developed a fairly straightforward trading strategy, I implemented it. From there, it was just iterative until I had something I felt could trade unsupervised. I still am fairly OCD about checking in on it when it's trading lots of money. Your strategy will change in interesting ways as you scale up the amount you are trading: Being an invisible small fish is pretty easy, but once you start having an effect on the price -- even in small ways, like some kind of "less small fish" -- you'll find that it also affects other traders (read: bots). Manipulating other bots is what a significant proportion of cryptocurrency trading strategies seems to be a fairly popular thing to do.

SirLJ 9y ago

Do you have any links about the manipulations? I would love to share them with some of my friends... Thanks!

fapjacks 9y ago
Well, for one, spoofing is absolutely probably the most common bot trading strategy in use on any crypto exchange. You really can't trust the order book too much except for major support/resistance levels, because everybody's spoofing. Just an example.