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Author Topic: Which percentage to use for ping pong trading?  (Read 2272 times)
maokoto
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February 25, 2016, 01:00:48 AM
 #1

By ping pong trading I mean put a buy order, then inmediately put a sell order a certain % higher when the buy order fills. Then the sell order fills and put a buy order a certain % lower etc... ping-pong.

I tend to use about a 2-5% percentage. Do you use this technique? Which percentage do you use?

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February 25, 2016, 09:03:12 AM
 #2

The percentage you put is very high, surely no one buys if you put right away 5% more value on the sell order. At most go with 2% since that's what most exchanges ask for so it would be the ideal percentage. In buy and sell, you should focus more on quantity instead therefor the less % you increase, the more likelihood you get a sell order completed.

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February 25, 2016, 09:25:17 AM
 #3

2%?

I use coinbase to sell and buy btc.

This trading webpagecharges 3% per buying operation and 3% per selling operation.

6% for any kind of operation. That means if I buy when btc hits 420usd and sell the stuff when hits 446, it would mean that I wouldn't get any raw profit.


On the other hand, when you have to switch your btc into fiat, most of us use paypal which charges 3.4%.
If you choose to use a bank transaction here in Italy banks charges arround 5-10% per transaction.

So how the hell do you do pingpong trading for btc or even other goods/shares/assets which their rate change is pretty much lower?



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February 25, 2016, 09:34:48 AM
 #4

2%?

I use coinbase to sell and buy btc.

This trading webpagecharges 3% per buying operation and 3% per selling operation.


6% for any kind of operation. That means if I buy when btc hits 420usd and sell the stuff when hits 446, it would mean that I wouldn't get any raw profit.


On the other hand, when you have to switch your btc into fiat, most of us use paypal which charges 3.4%.
If you choose to use a bank transaction here in Italy banks charges arround 5-10% per transaction.

So how the hell do you do pingpong trading for btc or even other goods/shares/assets which their rate change is pretty much lower?





3% is pretty high. Bitstamp charges 0.25% (or less), and Bitfinex charges 0.2% (or less). There are Chinese exchanges which don't charge for trades (only for deposits and/or withdrawals).

Having said that, I suppose you could do ping-pong trading at Coinbase by selling at 2% over the fee rate, i.e. sell for 5% more than you paid.

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February 25, 2016, 01:45:34 PM
 #5

I use to do it in coinbase exchange (not regular coinbase), in the BTC/Eur pair, and they do not charge any fee in orders that are not inmediate (fee is only charged when you directly accept a sell or buy price that's already posted). So percentages of 2 and lower are possible.

So it is better a smaller one right?

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March 01, 2016, 08:15:57 AM
 #6

In the Poloniex.com exchange, they charge 0.2% for buying and selling, that is 0.4% total. I would put the spread of 4%.
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March 01, 2016, 08:30:27 AM
 #7

By ping pong trading I mean put a buy order, then inmediately put a sell order a certain % higher when the buy order fills. Then the sell order fills and put a buy order a certain % lower etc... ping-pong.

I tend to use about a 2-5% percentage. Do you use this technique? Which percentage do you use?

My first thing is that i don't want to get loss instead of profit so i try minimum 0.5% then as much as i can up to 5% sometimes.

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April 07, 2016, 03:54:43 PM
 #8

By ping pong trading I mean put a buy order, then inmediately put a sell order a certain % higher when the buy order fills. Then the sell order fills and put a buy order a certain % lower etc... ping-pong.

I tend to use about a 2-5% percentage. Do you use this technique? Which percentage do you use?

My first thing is that i don't want to get loss instead of profit so i try minimum 0.5% then as much as i can up to 5% sometimes.

But the trading fee is 0.4% two way. So you will only make 0.1% initially. You are working for the exchange.
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April 07, 2016, 10:01:35 PM
 #9

By ping pong trading I mean put a buy order, then inmediately put a sell order a certain % higher when the buy order fills. Then the sell order fills and put a buy order a certain % lower etc... ping-pong.

I tend to use about a 2-5% percentage. Do you use this technique? Which percentage do you use?

My first thing is that i don't want to get loss instead of profit so i try minimum 0.5% then as much as i can up to 5% sometimes.

But the trading fee is 0.4% two way. So you will only make 0.1% initially. You are working for the exchange.

This percentage is the lowest possible that i expect to earn when i trade, now the poloniex has made the exchange fee to 0.15% up to 0.25%, sometimes it's better sometimes not, but everything larger than 1% is welcome when investing/trading few bitcoins.

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April 07, 2016, 10:16:01 PM
 #10

2%?

I use coinbase to sell and buy btc.

This trading webpagecharges 3% per buying operation and 3% per selling operation.

6% for any kind of operation. That means if I buy when btc hits 420usd and sell the stuff when hits 446, it would mean that I wouldn't get any raw profit.


On the other hand, when you have to switch your btc into fiat, most of us use paypal which charges 3.4%.
If you choose to use a bank transaction here in Italy banks charges arround 5-10% per transaction.

So how the hell do you do pingpong trading for btc or even other goods/shares/assets which their rate change is pretty much lower?




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April 08, 2016, 09:01:41 AM
 #11

The problem with your trading strategy is that you will make a little bit of money every so often while the price fluctuates within your range, but when there is a big move against you, you will lose all your profits.

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April 08, 2016, 09:10:54 AM
 #12

The problem with your trading strategy is that you will make a little bit of money every so often while the price fluctuates within your range, but when there is a big move against you, you will lose all your profits.

It depends how you do it. Last year I was buying BTC around $220 (I was aiming for $200, but in practice I'd wait for it to rise above $200 before buying) and selling calls around $280 (aiming for $300, but etc etc). If price started to rise after I'd sold a call I'd buy a call around $300-$320 to hedge. In practice this only happened once (in November), and my losses were limited to the difference between the calls I'd bought and the calls I'd sold.

I could have done a similar hedge with plain-old shorting, but I'm happier with pure options (shorting terrifies me, perhaps unreasonably...)

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April 08, 2016, 11:43:22 AM
 #13

Zero%. 0%. Null. Nothing.

You can only have very small profits with this strategy. For example, if you have bought at 402 and had a sell order at 410, but the price suddenly goes to 450 and above, you still have only +2%.
But what happens if the price falls to 350? Then you have a lot of loses.


I only trade 4-5 times a year, when I can predict more the price. And almost every time I do pretty high profit of between 10% and 100%.
But I have a work too so I dont have to live from trading money.

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April 16, 2016, 05:55:29 PM
 #14

The problem with your trading strategy is that you will make a little bit of money every so often while the price fluctuates within your range, but when there is a big move against you, you will lose all your profits.

That is my concern as well. That strategy works well during the range trading. it does not work with momentum trading.
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April 16, 2016, 06:01:09 PM
 #15

Sorry, I meant coinbase exchange. I do not see any fees there, except when I directly buy or sell at an already offered price. Have profitted around 10% in 4-5 months using the strategy to buy and sell a little higher or lower. I know it is not a great profit, but I do not think it is bad either, and has not too much risk.

When it ends up going lower than expected, I tend to buy a little more at bottom.

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September 27, 2017, 10:29:44 AM
 #16

I am unclear if you mean what spread to aim for or what percentage of your funds to use. If it was spread I would aim for about 3%, if it is percentage of funds I would use maybe 10-20%, this can be quite a risky thing to do.

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September 27, 2017, 11:33:05 AM
 #17

Yeah sometimes i take the advantages from that situation, maybe i will use lower percentage than you use it, although we can take the advantages but there is high risk potential of lose the money because IMO market on ping pong time it's mean we not know where the price will goes, up or down.

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September 27, 2017, 12:29:12 PM
 #18

It depends very much on how volatile the coin is. With coins that regularly move at least 10% a day up or down, you can have a high percentage for your ping-pong.

But with some coins, like litecoin, ether etc, which move only a few percentage points in a day, you'd need a low percentage. But those coins compensate with high volume, so you are likely to do more trades. So you need to calculate which is more profitable.

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