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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
by a13n 9y ago
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.
- adjkant 9y agoAnother 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.
- a13n 9y agoSee? Now there's a blog post I'd read!
- canttestthis 9y agoCould you link me to where it says GDAX has 0% fee on limit orders? I couldn't find it.
- ctchocula 9y ago"When you place an order at the market price that gets filled immediately, you are considered a taker and will pay a fee between 0.10% and 0.25% for BTC books and 0.10% and 0.30% for ETH books. When you place an order which is not immediately matched by an existing order, that order is placed on the order book. If another customer places an order that matches yours, you are considered the maker and your fee will be 0%. When you place an order that gets partially matched immediately, you pay a taker fee for that portion. The remainder of the order is placed on the order book and, when matched, is considered a maker order. The fee is 0% for that part of the total order." https://www.gdax.com/fees/ https://www.gdax.com/fees/
- canttestthis 9y agoAh thanks. I found the page earlier but shame on me for not reading all of it.
- ctchocula 9y agoNo problem. The key is choosing "Limit Order" and checking the "Post Only" box under "Advanced". That will prevent your order from turning into a taker order if you accidentally set the Limit Price too high when buying/too low when selling.