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Author Topic: How would you exploit this trading bot?  (Read 927 times)
jav (OP)
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May 24, 2013, 10:35:49 AM
 #1

Assume a trading bot has the following behavior: You can force it - at a time of your choosing - to buy BTC at spot price. There is a limit on how much it will buy (but within this limit you can specify the amount) and how frequently you can make it buy, as it sort of needs to "recover" first. It does that by selling at spot price sometime later - you cannot influence that part.

Any reliable way of completely eroding this bot's trading funds, given this knowledge?

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May 24, 2013, 01:08:04 PM
 #2

if you could exploit that then you could use the same knowledge to reliably make yourself money in the market w/o the bot.

But if the bot buys enough to move the market more then the trading fee, you could make yourself money by buying, triggering the bot, selling.  Given a flat market, this would on average tend to erode the bot's trading funds.  But during a bull market it might not.
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