Bitcoin Forum
December 03, 2016, 02:46:45 AM *
News: To be able to use the next phase of the beta forum software, please ensure that your email address is correct/functional.
 
   Home   Help Search Donate Login Register  
Pages: [1] 2 »  All
  Print  
Author Topic: automated day trading  (Read 5660 times)
johanatan
Member
**
Offline Offline

Activity: 84


View Profile
June 02, 2011, 07:55:41 AM
 #1

I've developed a bot for gox trading (hosted on google app engine) which I've been using with reasonable success so far (avg profit 1-3% per day).  I am considering opening it up to outside investors and want to get an idea of the demand for such a service.  I will most likely settle on taking a percentage of the profits that it generates (as opposed to alternate pricing schemes).

It is certainly not as profitable [longer term] as simply holding at this point but it does offer the advantage of capitalizing on the near-constant noise (and is thus a good avenue for diversification).  I will, of course, over time increase its efficiency and customizability but it is already reasonably efficient and customizable.

1GjRUzZfDCBHeCyJk6av3pXYS9VKjCvQTQ
1480733205
Hero Member
*
Offline Offline

Posts: 1480733205

View Profile Personal Message (Offline)

Ignore
1480733205
Reply with quote  #2

1480733205
Report to moderator
1480733205
Hero Member
*
Offline Offline

Posts: 1480733205

View Profile Personal Message (Offline)

Ignore
1480733205
Reply with quote  #2

1480733205
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1480733205
Hero Member
*
Offline Offline

Posts: 1480733205

View Profile Personal Message (Offline)

Ignore
1480733205
Reply with quote  #2

1480733205
Report to moderator
1480733205
Hero Member
*
Offline Offline

Posts: 1480733205

View Profile Personal Message (Offline)

Ignore
1480733205
Reply with quote  #2

1480733205
Report to moderator
1480733205
Hero Member
*
Offline Offline

Posts: 1480733205

View Profile Personal Message (Offline)

Ignore
1480733205
Reply with quote  #2

1480733205
Report to moderator
IIOII
Hero Member
*****
Offline Offline

Activity: 917



View Profile
June 02, 2011, 10:50:41 AM
 #2

I doubt that you've developed a trading system that will perform that good over the long term.

If it was that easy everyone would already be using such a system at the stock market.

M4v3R
Hero Member
*****
Offline Offline

Activity: 607



View Profile
June 02, 2011, 11:29:51 AM
 #3

It is relatively easy. I did also develop a bot like this, and it works quite well. The reason for this is because market is very liquid. You can buy and sell with a small profit every day, just by watching indicators (such as RSI or MACD).
speeder
Hero Member
*****
Offline Offline

Activity: 546



View Profile
June 02, 2011, 01:56:55 PM
 #4

I did daytrading by hand when I had time and the percentage of spread was bigger (ie: during 1 USD days, I could profit 30% weekly).

Percentage of spread I mean: a 10 cent spread at 10 USD, is less than mtgox fees. but 10 cent spread at 1 USD is 10% of spread (thus potential profit in a single sell/rebuy transaction)

johanatan
Member
**
Offline Offline

Activity: 84


View Profile
June 02, 2011, 03:20:49 PM
 #5

Yea, it will be even more profitable when one or both of two things occurs--

1 - gox lowers fees due to competitive pressure.
2 - gox increases the frequency of price updates (or volume increases to the point where this makes sense or just happens--not entirely sure how quotes are updated currently).

But, as I said, it is a decent profit now (considering that it's a 'set it and forget it' scenario).  And, the more capital I have to throw around, the more so it will be.

Another direction I will most likely take this: a sort of meta-trader [broker] platform; i.e., executing trades on the exchange with most favorable rates (or locally).

1GjRUzZfDCBHeCyJk6av3pXYS9VKjCvQTQ
Dansker
Hero Member
*****
Offline Offline

Activity: 740


Hello world!


View Profile
June 02, 2011, 04:48:22 PM
 #6

If it works so well, why would you want to share it haha

johanatan
Member
**
Offline Offline

Activity: 84


View Profile
June 02, 2011, 05:07:26 PM
 #7

Two reasons--

1 - I don't have sufficient capital to maximize its potential. i.e., I am sure that I could be throwing around a lot more coinage without effecting the market dynamics much (if at all).
2 - I will take a percentage of the profits for use of the bot.

Think of it like a mutual or hedge fund with myself (and my robots) as the manager.

1GjRUzZfDCBHeCyJk6av3pXYS9VKjCvQTQ
speeder
Hero Member
*****
Offline Offline

Activity: 546



View Profile
June 02, 2011, 05:14:44 PM
 #8

I am all for it Cheesy

I am willing to throw some thousand USD on it, if it proves to work properly.

sandos
Member
**
Offline Offline

Activity: 106


View Profile
June 02, 2011, 07:30:47 PM
 #9

I suspect you will find that with any substantial amount of coins, it will be much harder to get the same old, good, profit. You will have to take worse deals if you really want to move larger sums.
Bazil
Full Member
***
Offline Offline

Activity: 126


View Profile
June 03, 2011, 03:17:13 PM
 #10

Yea, it will be even more profitable when one or both of two things occurs--

1 - gox lowers fees due to competitive pressure.
2 - gox increases the frequency of price updates (or volume increases to the point where this makes sense or just happens--not entirely sure how quotes are updated currently).

But, as I said, it is a decent profit now (considering that it's a 'set it and forget it' scenario).  And, the more capital I have to throw around, the more so it will be.

Another direction I will most likely take this: a sort of meta-trader [broker] platform; i.e., executing trades on the exchange with most favorable rates (or locally).

You can keep track on the mtgox prices by reloading the buy/sell page constantly,  It can go up and down extremely fast I've found.  The charts don't give you good resolution and it's at least a 30s lag.

17Bo9a6YpXN2SbwY8mXLCD43Wup9ZE4rwm
FooDSt4mP
Full Member
***
Offline Offline

Activity: 182


View Profile
June 03, 2011, 03:22:11 PM
 #11

Yea, it will be even more profitable when one or both of two things occurs--

1 - gox lowers fees due to competitive pressure.
2 - gox increases the frequency of price updates (or volume increases to the point where this makes sense or just happens--not entirely sure how quotes are updated currently).

But, as I said, it is a decent profit now (considering that it's a 'set it and forget it' scenario).  And, the more capital I have to throw around, the more so it will be.

Another direction I will most likely take this: a sort of meta-trader [broker] platform; i.e., executing trades on the exchange with most favorable rates (or locally).

You can keep track on the mtgox prices by reloading the buy/sell page constantly,  It can go up and down extremely fast I've found.  The charts don't give you good resolution and it's at least a 30s lag.

http://bitcoin.clarkmoody.com/time-sales/
or
http://bitcoincharts.com/
or
lots of others, search these forums

Please don't hammer the MtGox servers harder than necessary.

As we slide down the banister of life, this is just another splinter in our ass.
speeder
Hero Member
*****
Offline Offline

Activity: 546



View Profile
June 03, 2011, 03:58:13 PM
 #12

Keep in mind that mtgox has some nice APIs that report in realtime all trades and whatnot.

You can see it working with several pages around the web (bitcoincharts, bitcoinwatch, bitcoinmonitor...) and Gribble (the irc bot, that reports in real-time all exchange transactions made on #bitcoin-market on freenode network)

oillio
Newbie
*
Offline Offline

Activity: 23


View Profile
June 03, 2011, 07:20:23 PM
 #13

Interesting idea.
You could use the GLBSE stock exchange to handle the collection of investments and paying the profits as dividends.
yossarian
Hero Member
*****
Offline Offline

Activity: 492


View Profile
June 04, 2011, 06:20:31 PM
 #14

I'd be interested. Are you ready to deliver yet? Cheesy

I'm always buying and selling BTC, PM me for details. Rating and GPG-key: http://is.gd/yossarian

Buy and sell BTC via SEPA: https://www.bitcoin.de/r/nrnxg6

Bitmessage: BM-2DAoXPtLdQEnR2iSneCTjpgRPtzXsSAi1m
M4v3R
Hero Member
*****
Offline Offline

Activity: 607



View Profile
June 04, 2011, 08:21:58 PM
 #15

Yea, it will be even more profitable when one or both of two things occurs--

1 - gox lowers fees due to competitive pressure.
2 - gox increases the frequency of price updates (or volume increases to the point where this makes sense or just happens--not entirely sure how quotes are updated currently).

But, as I said, it is a decent profit now (considering that it's a 'set it and forget it' scenario).  And, the more capital I have to throw around, the more so it will be.

Another direction I will most likely take this: a sort of meta-trader [broker] platform; i.e., executing trades on the exchange with most favorable rates (or locally).

You can keep track on the mtgox prices by reloading the buy/sell page constantly,  It can go up and down extremely fast I've found.  The charts don't give you good resolution and it's at least a 30s lag.

MtGox has a WebSockets API, which is feeding you depth/trade data in real-time, which is what my bot is using. No need to hammer the servers with HTTP requests.
johanatan
Member
**
Offline Offline

Activity: 84


View Profile
June 04, 2011, 10:08:31 PM
 #16

Yea, it will be even more profitable when one or both of two things occurs--

1 - gox lowers fees due to competitive pressure.
2 - gox increases the frequency of price updates (or volume increases to the point where this makes sense or just happens--not entirely sure how quotes are updated currently).

But, as I said, it is a decent profit now (considering that it's a 'set it and forget it' scenario).  And, the more capital I have to throw around, the more so it will be.

Another direction I will most likely take this: a sort of meta-trader [broker] platform; i.e., executing trades on the exchange with most favorable rates (or locally).

You can keep track on the mtgox prices by reloading the buy/sell page constantly,  It can go up and down extremely fast I've found.  The charts don't give you good resolution and it's at least a 30s lag.

MtGox has a WebSockets API, which is feeding you depth/trade data in real-time, which is what my bot is using. No need to hammer the servers with HTTP requests.

WebSockets would be nice but unfortunately AppEngine doesn't support it yet.

1GjRUzZfDCBHeCyJk6av3pXYS9VKjCvQTQ
Sukrim
Legendary
*
Offline Offline

Activity: 1848


View Profile
June 04, 2011, 10:17:41 PM
 #17

Maybe it does not support them natively on the sending side - but have you checked the receiving side too?

https://bitfinex.com <-- leveraged trading of BTCUSD, LTCUSD and LTCBTC (long and short) - 10% discount on fees for the first 30 days with this refcode: x5K9YtL3Zb
Mail me at Bitmessage: BM-BbiHiVv5qh858ULsyRDtpRrG9WjXN3xf
johanatan
Member
**
Offline Offline

Activity: 84


View Profile
June 05, 2011, 04:39:24 AM
 #18

Maybe it does not support them natively on the sending side - but have you checked the receiving side too?

All my web searching has indicated that neither sending nor receiving is possible.  They do have:
http://code.google.com/appengine/docs/python/channel/overview.html

which Mt Gox may want to consider supporting for App Engine clients (at least until they get Web Sockets).  Should be a pretty easy modification to the server code to support this protocol.

1GjRUzZfDCBHeCyJk6av3pXYS9VKjCvQTQ
M4v3R
Hero Member
*****
Offline Offline

Activity: 607



View Profile
June 05, 2011, 06:46:53 AM
 #19

It's not a thing that they have to support for it to work. WebSockets are just a layer of communication over simple socket connection. You can even try to telnet the service and send in some header data and it will work. There already is some code in Python for handling WebSockets: https://github.com/mtah/python-websocket

Or this, written specially for GAE: http://code.google.com/p/typhoonae/wiki/WebSockets
johanatan
Member
**
Offline Offline

Activity: 84


View Profile
June 05, 2011, 07:12:27 AM
 #20

Google AppEngine does not allow socket connections.  I saw 'typhoonae' but it is merely a proposal (or suggested implementation).  It requires modifications to the SDK (which are, of course, fine for testing locally) but will not work when your code is deployed to App Engine itself (which uses a standard SDK).

Also, 'AppEngine Channels' is a competitor [an equivalent but different (yet another protocol)] to WebSockets and Gox would have to explicitly support it if he wants to (i.e., via [albeit simple] code).

1GjRUzZfDCBHeCyJk6av3pXYS9VKjCvQTQ
Pages: [1] 2 »  All
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!