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As someone using machine learning to identify the patterns of bots on GDAX and riding the waves accordingly, I can say this is certainly happening. It's not jus
by adjkant 9y ago
As someone using machine learning to identify the patterns of bots on GDAX and riding the waves accordingly, I can say this is certainly happening. It's not just one bot though. There is huge money right now in crypto markets, both illegally and legally.
- thisisit 9y agoWhile I don't doubt there are bots out there. How are you able to differentiate between bots and human trades?
- thrownaway577 9y ago.
- tuxxy 9y agoMind sharing some or a place to get started in learning them?
- thrownaway577 9y ago.
- oil7abibi 9y agoWhat did he say?
- adjkant 9y agoPersonally, I'm not fully, though I'm sure there are methods. Realistically, right now the naive solution is working just fine, which is just identifying market trends. Because so much is bots, it inherently learns the trends of bots, allowing me to write an algorithm that reacts to said trends. The human trading more or less accounts to be the noise level over the bot patterns, though I'm sure some bots also react to the noise, increasing the noise in practice for my purposes. All I know is I can get a good enough accuracy right now to make pretty accurate guesses.
- multibit 9y agoWhat is your naive method? Like what is the algorithm?
- adjkant 9y agoThe learning method is really quite naive, I'll put it that way. The algorithm I chose is designed to be risk averse and crash resistant. The learning method and algorithm are orthogonal/separate, and what learning you pair with what trading algorithm can make a big difference in risk and returns obviously. I'd prefer not to say more than that simply because if the algorithm was run at any large scale I worry about its effect on the market as a whole. Imagine a bunch of bots all following the patterns of a few other bots and what happens if one of those big player bots errors or even if there's a change in the bot and people don't retrain their model. That's just one way it could all go south quick. I'm frankly worried that this risk doesn't already exist.
- otp124 9y agoI wonder if the bots are the root cause of some/many of the gdax/coinbase service disruptions (the article mentions trading suspensions, but not service outages).
- adjkant 9y agoThe GDAX API has a pretty low rate limit. The bots should be running 24/7, so the "cause" depends on your point of view I guess: if the increased human traffic is what kills the service, or if the existence of the constant bot traffic kills it. But I doubt that a huge spike it bot activity happens. The number of requests should be pretty constant, relatively speaking.
- gchokov 9y agoDO you really think these bots use the same API and routes that you and me use? No way!
- iopuy 9y agoWhat other API would they use besides the one provided by gdax?
- therein 9y agoThe GDAX FIX API has higher rate limits. :)
- adjkant 9y agoYeah, good catch, I didn't consider that. But still, what type of algorithm will see such an increase in number of requests during the crash times but not during any others? Based on what I've seen, the number of requests needed to run these algorithms again seems pretty constant over time.
- ycombobreaker 9y ago