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Also, I wonder if anyone has used bots to perform HFT using bitcoin in the same manner that was used on traditional stock exchanges. There are certainly people
by minimax 13y ago
Also, I wonder if anyone has used bots to perform HFT using bitcoin in the same manner that was used on traditional stock exchanges.
There are certainly people out there with trading bots hooked up to the various exchanges. I know at least one guy who was trying something a few years ago. Because the volume is so low (~ few $M daily) I don't think there are any big players there. Also the market data and order entry protocols don't look like they would be suitable for the really high speed stuff.
That said, the market data and order entry protocols are really simple and I think most exchanges offer them for free. An automated bitcoin/dollar trading program would be a pretty easy thing to whip up. It would probably be a good introduction to automated trading for people that are interested in that sort of thing.
- dclusin 13y agoI would also add that a lot of venue arbitrage strategies are too cumbersome to implement in bitcoin because you need to store collateral with multiple exchanges unlike equities or other proper financial markets.
- drpancake 13y agoI'll just jump in here and cheekily plug my service: http://tradewave.net http://tradewave.net There are a lot of people building trading bots for cryptocurrencies, and it's pretty easy to get started by yourself. But not everyone has the chops or patience to do it well; for example gathering, aggregating and storing data across the various exchanges is a huge pain. So my site abstracts away that stuff. You can't do real HFT with Bitcoin (and others) as the infrastructure just isn't there yet. The lowest I've heard is 15-30 second trades and even that's rare. Most people go for 1-2 hours.