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First Two GitHub Sponsors Subs!

Join our growing Telegram community for blog updates, bot chat, general fun and crypto madness? https://t.me/ManyVolumeSignalMonster

Today is a good day.. my open-source contributions make money (again!) With the apparent death of utopian.io, I can now derive (2x my income for the first $5k USD!) income from GitHub.

Everyone who wants to buy me a coffee every now and again or port my bot from my existing bots to your exchange or whathaveyou, sign up for GitHub Sponsors and Subscribe to Me!

Trader, Trader, Where Art Thou, Trader?

Here’s a shoutout to whoever ‘across the pond’ used my Deribit referral link and then traded ~$50 million USD notinoal over the last 8 days, stopping 2 days ago. I really hope you’d enjoyed whatever flavor of my bots you were using, and would like to offer you exclusive access to Coindex’s bleeding edge bots:

For reference, this config matrix has 9 bots with around 0.01 balance each (total 0.9) and does $500-$600k a day, on average. The perpetrator would have needed a balance 10x this size – let’s open a discussion!

Get ahold of me here: jare@coindexlabs.com.

A long long time ago I left the army and decided to make the absolute best living for myself without breaking a sweat.

This led me to a lifetime sitting in front of a computer in PJs and dreaming up new challenges for myself, and learning how I can basically hack my way through any technical problem that came along. My sheer count of Github repos grew, mostly to do with arbitrage in adtech or sports betting and then wham, crypto exploded.

I’d thought it was anonymous online money for the gangsters of the world until I looked into it – and discovered Satoshi, and discovered a revolution.

Wholly onboard, I started working customer support jobs for crypto companies. Yawn!

My birthday of last year Ryan headhunted me to be the third active member of the Coindex team. And my life changed. While little to no money yet, we’re at a quintessential stage of growth. Some of you have already been using various stages of their beta, and Ryan will have news for you here when we go live with our newly evolved market maker. 

Join Discord: https://discord.gg/xuWjAUv?ref=hackernoon.com

Further reading: https://hackernoon.com/heres-what-my-crypto-trading-bot-will-do-with-a-little-help-from-binance-and-deribit-ac1ml32ny

What I’m writing to you about is a pet project really. The net difference on positive and negative funding rates on exchanges allows for a ton of easy money to be made. If you build a perp and hedge it with another perp in another exchange, and have all your funds in USDT and trade a half dozen pairs that we know will yield us more $ than what the maker fees cost to get into and out of position.. that’s a goldmine.

I wrote some of you about this before, but now the bot is nearly ready for some production betas. I’m not presently charging for this bot (although Coindex may, in their infinite wisdom, or may somehow otherwise incorporate it into our strategies.

Hilariously the bot I’m showing you in these screenshots isn’t the exact bot i’m plugging – but it’s very close! The bot we’ll be running will be on Binance and FTX, and given default settings will always earn 2x the funding income it spends on market pairs.. The next issue for me to nail out is to not trade those pairs with lower volume on FTX… but seeing as how there’s 4-5 to choose from earning more in the net difference than fees cost, that’s no biggie.

Here’s a screenshot from THIS bot, in an email I penned most of you before getting buried in Coindex work again:

Keep in mind that this is highly beta software and you can lose all your funds. This is not investment advice. 

Keep in mind too the software is nowhere near completion – that’s why we call it beta access. There will be bugs, some will lose some money and some will gain some money.

If you do want to continue, sign up for a brand new binance account and don’t use a referral code. For Binance as a Broker, I get rebates when you use my API key that’s hard-coded in the code (so long as there’s no referral tied to the account). Then, sign up for a new FTX account here:

https://ftx.com/#a=JaresFundingArbitrage

I know some of you folks already have a set of new accounts and are waiting on me to share the code 🙂 I won’t actually be sharing the code, though, I’ll be spinning you guys up some instances that run and track and graph your balance over time after you folks provide your (non-withdrawal, futures enabled) API key.

Write me back and we can get started!

Follow up my filling out this form here: google form

A Brief Description of the Noticeable Cross-Exchange Inefficiences

Price

Price action tends to happen where people are planning to keep the crypto they buy. A bigger movement on a spot exchange easily translates into a much more radical move on the exchanges that match and mirror cash’s behavior, like perpetual swaps and futures.

The inefficiencies in price can (and have been) taken advantage of, both inside a single exchange and by combining exchanges. It’s like buying 10 apples downtown for a dollar, walking uptown and selling those same apples for $2 – that’s $1 in your pocket as pure arbitrage!

Deriviatives

When exchanges offer derivatives, or trading products who somehow derive their value from an underlying asset, all sorts of new worlds open and opportunities arise. While futures, options and other kinds of derivatives in traditional markets are conquered by quant trading funds with both the wherewithal and capital to dominate any inefficiency in moments – the opportunities last a fair deal longer in crypto. This is an aside, but DeFi leader Compound.io has a ‘liquidation’ mechanism for loans that devalue against the asset they borrowed and would risk bankruptcy except that other Compound uses can opt to pay back a part of the debt and in return they receive some of the collateral at a discount. The long and short of it is that a year or two ago some loans in ETH totaling a few millions of dollars went up for liquidation and every single automated liquidator in that ecosystem had a piece and there was some left over – meaning that the big guys haven’t cornered every opportunity in crypto, yet!

Here, have some opensource compound autoliquidator I started writing: https://gist.github.com/DunnCreativeSS/ac0f2b1d7ce4f334c4cba805e26452bb https://gist.github.com/DunnCreativeSS/07d42c8031393e8e626325bc0f2af40e

Derivatives Pt 2

I should explain that holding a position at any amount of leverage is an opportunity all on it’s own. Let’s say you notice that the aggregate volumes mean you think a bullrun is coming and you’d want to long that trend and hopefully catch 70% of the action. You do so, exposing $500 instead of the $100 capital you had and by the time the price moves a whole 1% you exit. Instead of gaining $1 without leverage you were able to capture $5… bravo!

aggr.trade has great aggregate data,, I forked their repo once for a bot…

When it comes to being able to figure out the data beyond your gut instincts, if you can find and maintain any edge – even 70% of the time – and successfully repeat that success, then you can do it at increasing levels of leverage until you maximize your yields without risking the chance of liquidation – in a mix according to as you see fit.

Funding

Where it gets interesting is when crypto exchanges define their own brand-spanking new instrument and contract, like they did with Perpetual Futures. This is really the wild wild west of the financial world, and now we can play with all the ins and outs that make these thing tick. Instead of a traditional futures contract, where the premium affects the price above/below the spot or underlying price and the time until the future expires is the control on the price (as – depending on your methods of settlement) your futures will be settled at present day value on expiry day. This means that (by and large) futures will converge or move closer to the underlying price. We can measure this by dividing the days left until expiry to see how much buying low and selling high now between futs and perps might allow us to win through what’s known as ‘cash n carry futures arbitrage.’

That was a lot about futures, but the heading indicated perps?

Well, the good news for you is that I just finished a work of art. There’s a whole bunch of different ways to approach how to have a sure-fire way to win when the exchange literally force people holding or shorting crypto to pay a fee to each other (funding…)

I looked at the sheer number of perpetual contracts that Binance and FTX share. I then wrote a short script to check and compare how different their funding rates were – and whether or not buying in one place could mean selling in another and keeping the funding rewards for both directions. Sure enough, you could!

POC’s funding rebates… (note negative means paid to YOU!)

The funding rates vary but if you apply some math to each and every shared perpetual contract and assuming entry-level maker fees of 2% on each exchange, there are as many as 5-7 opportunities to just break even or 2-3 opportunities at DOUBLE the cost in fees!

AND I’M GIVING ACCESS AWAY FOR FREE!

(just sign up for my FTX referral link, and use a Binance account that wasn’t referred by anyone).

#Social #Automation #Hack! Post a #Random #YouTube Channel’s Video to #LinkedIn #Facebook #Twitter

hi my name is jared dunn i’m chief liquidity officer for coindex labs and who are windex labs uh you can find our introductory video and a little short explainer on our uh on our um market maker and how to participate in our five-day trial in the link at the bottom of this video’s description um but today we’re going over a social automation hack that i just dreamed up i managed to use zapier and uh some python code to randomly select uh uh one of our youtube videos and uh post it to social networks so how do we do this well first you need an api key and you can google how to get your youtube api key from google then you need your channel id for the channel that you’re going to post and you can find that up here in most of the youtube links uh for that channel some of them have custom names if you manage to get enough followers or if you’re using a youtube channel that’s not yours that has enough followers and what does this look like in practice looks like this actually that’s not a good example let’s find my linkedin so i think it’s pronounced zap here v profile here’s one right here oops that’s not it this is a different post but i also automated using the same process uh so i have my youtube video and i have my youtube title and it’s been automatically posted to linkedin and that happens every so often so how do we do this well on zapier we create a news app we’re gonna make it triggered you may get triggered by anything but we’re gonna do a schedule so we can have it happen every day or every hour and the time of day we’ll do midnight for the court for the uh example here now what we’re going to do is we’re going to do code by zapier and we’re going to use this code so what does this do well he uses my api key and it finds my channel it looks up the results for that on the youtube api so let’s have a look at what that looks like on the internet so here’s what it looks like and i have my video id here which i can use to link the video which with uh the extra text here that we have the youtube.com slash watch v equals um then we have our title here which we’re going to use in our zaps so we get the results from that url we have an array for ids and array for titles by the way this long and short of this is that you want to copy the code that i put in the video description um into your zap and use that and replace your channel and replace your api key then we loop over the items in the results we look for if the video id is inside the data uh we save the video id we save the title we append the the title to the titles array and the ids the ids array along with the youtube link then we’re going to get a random number now the zap zapier interface supports requests library natively but it doesn’t support the random library natively so what we’re going to do is we’re going to use the request library to grab a random number off of random.org and what that looks like is this so we’re going to take the length of the ids array minus one so if it’s five long we’re gonna get random number from one to five like this from random.org and it generates a new number every time and then we’re gonna return the random youtube video and title so it’s going to look like this in our data and it’s going to be different uh it should be different every time see it generates a random number and chooses a random video so to do that in this app we’re going to use return here and we’re going to use all of this so we go back to zapier we do python code here because we’re running python code and we do next continue uh so we’re going to throw all of this code in here i’m going to continue we’ll be able to test it it’s going to give us some results that we get to person to our whoops back to setup i forgot to do my last step here it’s going to be a multi-step zap uh and if we wanted to post the twitter for instance we select twitter we would log into twitter i’m going to create a tweet with my twitter account and what we’re going to do is we’re going to grab the title from our run python zap and the link and we’re not going to shorten the url if i do continue here and then test it should have posted to my twitter a new tweet that’s a random video and that’s that we would then turn the the zap on and it would post that every day at midnight alright you might see this video randomly on my twitter and facebook and linkedin thanks bye

Challenges of Executing Arbitrage Opportunities in Bitcoin Futures & Options Trading – 3 Way w/ Fees

hi and welcome to this next edition in our series on arbitrage and bitcoin trading bots and all that fun stuff my name is jared i’m from chief i’m rather i am the chief liquidity officer of coin next labs uh in coindex labs who are we and how can you try our five day free trial on our market maker where you can view this youtube video down here to see that in action and while the market maker is actually on pause right now or at least the free trial is that’s because we’ve been redesigning the bot to be more uh beneficial for our users and uh less risk-averse um so if you take a look at our live chart here on chart.condexlabs.com you can see the bot uh is live with a balance um and you can see that it’s actually done fairly well in this dump so the blue line here is the bitcoin the us dollar price uh and it dumped significantly and we gained a whole bunch of bitcoin value and a whole bunch of us dollar value on our returns and we’re currently at about 12 bitcoin over the last couple days and uh four percent on the us dollar so once this is all back up and ready and ready to deliver we’ll uh reinitiate our five-day trial and you can have a look at our other video to see how that works so today what we’re looking at is the challenges of executing arbitrage opportunities in algorithmic trading and for instance uh we’re going to take a look specifically at three-way arbitrage uh crypto trading opportunities on binance on their spot markets so what does that look like what is three-way arbitrage what is three-way arbitrage well let’s say i have an asset let’s say i have an asset on finance let’s take a look at finance to take a look at what this looks like we’ll take a look at the markets let’s take a look at the us tether us dollar tether markets um so let’s say i had something use dollar tether i wanted to sell that us dollar title for bnb uh and then i wanted to use that bnb to buy bitcoin cash and then i wanted to sell that bitcoin cash back for tether let’s say i could do that and find a profitable uh opportunity among all of these markets and there’s hundreds of markets on this exchange so we have an asset trade it for a second asset trade it for a third asset and then back to original asset and that’s why we call it three-way arbitrage because we have two trades and then we have three trades then we have back to the original asset um so if this fees evolved let’s take a look at what the binance fees are for their bottom tier because they have tiered fees as you get more volume hold more of their exchange token you get less fees um but for the bottom fee it’s uh 0.075 percent or seven yeah and then if you hold the bnb token and pay the fee in the b b token instead of paying in whatever token or coin you’re trading it’s 0.6 from the maker or the taker and we’re only concerned with taker fees because we’re looking at initiating the trades in each of these cases against whatever is on the books so we can act on the opportunities that exist so 0.06 then we have one trade at 0.06 we have two trades at 0.06 percent again i’m gonna do three trades at 0.06 and then we have back to the original asset at 0.06 percent what this looks like is 4 times 0.06 percent what is that that’s uh 12 24 0.00 which is actually a huge amount of fees and we can take a look what this looks like with a freeware bot that i found on the internet and this guy has a donation link if you want to take a look at reimbursing them for the information that really provided us but if we do site github.com binance triangular arbitrage we can find this uh this spot so here he is here and you can actually use this spot to automatically trade these opportunities let’s say you negotiated lower fees or you you managed to trade a lot of volume and highlights and bnb and got lower fees this might actually be advantageous to you uh but i’ve set this up already on one of my virtual machines and let’s take a look at what that looks like so here we are let’s open up that config file here’s our market maker but what i want to do is look for finance triangular arbitrage and config file open up the config file let’s change our taker fee to zero percent let’s see what kind of opportunities we can find at zero percent so actually i already had it running let’s run it again uh what coin are we looking at here so hold we’re holding us dollar tethered to begin with we’re going to trade us dollar tether for other uh financial instruments and other financial instruments again so again the point of this video was the uh the challenges of executing arbitrage opportunities in algorithmic trading so another problem that we might face is how long does it take to do all of these trades because let’s say we bought uh our first asset let’s say the opportunity exists at 0.1 percent for all of these items if it takes me 100 milliseconds and i notice i can’t have these in here let’s say it takes me 100 milliseconds per trade let’s say i trade for the first asset 100 milliseconds trade for second asset i should say second third 200 milliseconds total let’s say that after i commit complete these trades then the trade for the third asset back to the original asset is no longer at the arbitrage opportunity that we found so let’s say that we get less of our original asset back than we had originally planned um then because it takes us 300 milliseconds to do all of this the opportunity might disappear so i mean let’s say if i well i mean let’s say we have a dollar of our asset we’re going to trade for the second asset and get a dollar in a cent trade for a third asset and get half of that back and trade for our first asset back and get a little bit less than that back let’s say this was the opportunity that we had so what we might find is that any of these legs of the trade might actually disappear in the time it takes to complete all of these legs of the trade and we just call that the execution challenge the execution time challenge and we can actually take a look what that looks like here in our freeware finance triangular arbitrage trading bot that we found so again we have zero percent fees here we’re actually finding that there are no profitable trades available for zero percent fees on the us tether whole uh base asset but you can see here the ab age that’s the the for the the first uh trade the second trade and the third trade um are changing all the time which means that these these these things exist for less than a second usually before they disappear and you can see that changing in real time but if i was to change these fees again and make them 0.06 percent which is what most people will pay if they just start this off with the traditional fees we’ll run that again what did i just break it’s this one that i want we’ll see that our negative 0.1 percent arbitrage opportunities that we found are no longer that attractive when we run with 0.06 percent taker fees which is our second challenge in executing these arbitrage opportunities is what happens if i have to pay more fees than what is ideal and we will find that out shortly so again if the arbitrage opportunity exists uh and then you execute one or two of these trades um and actually i have a freeware uh github repository that failed recently because of this exact reason um basically it would find an arbitrage opportunity and then because it was on chain or rather it was using the ethereum blockchain to execute these arbitrage opportunities we’d find that after one block or two blocks to to execute on those opportunities um that we are no longer able to find a profitable trade and then we’re actually left helding or we’re actually left holding rather um it would be left holding one of these intermediary assets as the opportunity didn’t last long enough all right let’s go back to our finance trader that we found on github and now you see that these these opportunities that this funding are much less profitable um they’re actually less profitable by as you’d imagine a magnitude of zero point zero six percent times four which is zero point zero two four percent um because we’re now paying fees on each of those legs um and that’s basically what most arbitrage opportunities face as issues when we’re trying to execute on them is is this this age limit here and then also the fees that we have to pay alrighty thank you

Investment BitMEX, Deribit, ByBit Cryptocurrency Funding: What It Is & Can We Earn Via Arbitrage?

hi folks and welcome to this next video in our series on how to earn through arbitrage and how different arbitrage models work and how we can automate them and create a revenue streams for ourselves and for our clients my name is Jared I’m chief liquidity officer for coin mechs lives and who are coin next lives and how who are we and how can you try a free trial a free trial actually is right now on hold while we create our market maker into a more strong offering so the lengths to be the video on how you can take part in the trial or join our discord is below but let’s take a look at the current flavor of the ball and how it’s been performing since we took time to concentrate on the core offering and and deliver a more stable and risk-averse spot if we take a look at the all time frame on this chart you can see that the green line here which is the Bitcoin US dollar returns and the black line which is the US dollar returns have been increasing significantly over time and even though we nearly had 0% returns on US dollars is now up it was up about 5% now it’s around just about 4% or four and a half percent meaning that we will have our market maker again able to deliver for you in the near future so today we’re gonna look at professional funding and perpetual contracts on bit mechs and they’re a bit and by bit and all these other exchanges what they are why it works the way it does and how we can earn to arbitrage so what is a professional contract well if we take a look at their but we’re gonna see some contracts that are basically like [Music] traditional financial instruments which expire in the future as the price as the business between the time in the future and now becomes shorter the price comes closer and closer to the mark price of the or the the spot price for that for that underlying symbol or item or in a you know in these cases big coin so these two contracts expire on June 26th and September 25th as you can see the prices aren’t exactly the same they’re a little bit less in each case than the perpetual contract and all the professional contract is is it’s a futures contract that never expires it’s made possible through blockchain wonders and basically instead of having this different price from from the spot price that converges over time we now have an instrument funding apparatus that’s put into effect so if we take a look at bit max we can see that if the price diverges from the market price significantly the funding rate goes up or down according to whether or not we want to bring the price back up or down to meet the spot price so right now the funding rate is negative 0.08 percent meaning that in an hour and six minutes those shorts or the people that are that are currently selling or betting with the price will go down they’re gonna pay a percentage of their of their holdings to the people that are longing but that contract meaning that basically it’s gonna incentivize people to to be long on that contract and to hopefully bring the price back up so if we take a look at the Bitcoin price of the professional which is six seven six two we should see that let’s give a look here we should probably see that that future price for the perpetual is below the mark price and we could probably find that out by grabbing the instrument data from the API and indices I guess no we don’t need anything bases so if we tried this API call here we’re gonna find our active symbols so this is the the Bitcoin US dollar perpetual contract if we look for a mark price now let’s just copy all this stuff or we’re gonna see the market price is six seven six eight and we said that should be above the price for the perpetual product contract but not by much it looks like it’s fairly converged so it looks like the funding has actually worked in this price in this in this instance because the prices converged on the mark price which is good news which means we should see in the next funding rate do we have predicted funding rates no we don’t have the predicted funding right I wonder if I can find the particular funding right so that we should see the next funding rate for the next eight hour interval interval should be less than this funding ring it looks like we don’t get the actual next funding rate often next from the API which is fine either way we see that the funding rate has worked and the the price of the professional has come closer to the mark price over that last seven hours since the last funding happened now we can check back in an hour to see whether or not my hypothesis is true and see whether or not our funding rate is going to be less than zero point zero zero eight so funding rates bring convergence in perpetual features see the market price which is the underlying price now that’s basically it that’s how it works that’s why it does what it does now how can we earn and through arbitrage well let’s say we have more than one exchange let’s say we have one exchange where the shorts are paying along 0.01 let’s say we have one exchange where the lungs are paying the shorts rather the guy the lungs are paying the shorts point zero zero two while in this case we can see that if we were to take a long position on the first exchange and a short position on the second exchange both of them would be earning and one would be earning high twice as much so the difference in those is this much so we’d be earning this much percent on an eight-hour period on most of these exchanges some of these exchanges like FDX and arabic quote their rates in 24-hour periods so it’s best to multiply then I would into daily rates to compare and we can take a look at what this looks like in real time with a bot that I’ve created which chucks dared it and by bit and bit Max and we’ll see that the rate on bit Max is three times the rate that we just saw quoted on the interface so we saw 0.8 percent which is 0.008 in decimal zero zero zero eight in decimal if you multiply that by three to get a daily rate we’re gonna get negative 0.02 or 0.2 percent on a daily dare bit is set at zero right now for both ether and Bitcoin and by bit on Bitcoin is 0.01 0.001 or 0.1% where the shorts are paying the lungs which means that we’d want to long bit mix that example for Bitcoin or for ether good one along by bit because the private raid on Uther is higher than the business rate which is actually looks like we want to short bit max for ether but the by bit rate is more extreme so if we were to compare the two based on the value difference between themselves in absolute zero we’d see that we would be more we get paid more if we were to sorry if we were it’s a long by bit in this example and then if we short bit Maxon just ignore their bit we’d earn even more so basically what that means is let’s say we had ten hundred thousand dollars on let’s say we had a hundred thousand dollars total I’m saying worth we’ll say so in this case what I want to do because this one’s shorts paying Long’s half as much as long as it paying shorts we’d want to short back that balance so fifty thousand dollars 33 says well you’re gonna short the third of that balance and we’ve won along two thirds that balance to maximize our income but what we could possibly do is actually only go half and half and that way we wouldn’t be exposed to any upwards or downwards movement in the price because you shorter than Long’s exactly the same amount on these two different professors contracts but should stay around the same mark price and so we won’t see any upwards or downwards movement because we’re perfectly hedged and now we can arbitrage the rates and what will we earn in this case oh we learned five bucks and ten bucks over here dollars let’s look what that looks like with the actual rates that we saw from the API but either so if we were to short knickknacks and long by bit and this is using real numbers from the actual exchange as it is so we belong with hyper balance in short with a prevalence let’s say the end $50,000 each which is in a far cry for some investors institutional retail what would get is every eight up this is actually daily rates here so every day every would get a third this they okay so for its multiply this out but you guys gosh well we’re holding to get seventy dollars and 35 cents for free just from the funding and we’d weigh that against our bit mix shorts which you’re gonna pay s $10.50 so now we’ve just earned 27 dollars and 85 cents from basically not having any exposure or any risk and perfectly balancing our shorts versus our Long’s and earning on that funding difference with honor back bars so again what was that by the day twenty seven eighty five to seven twenty five times three assuming the race didn’t change throughout the day that’s 85-83 third fifty-five every day which is zero point zero eight three percent Thursday it’s not actually that much but you’ll see that these rates are actually very very low and you’ll see that in the future these rates can sometimes go kind of extreme it looks like I’ve broke the bit next clock because it shouldn’t say 24 hours for funding here it should be 56 minutes but you’ll see that this rate is actually very very small and over time you’ll see a higher rate and we’ll have more arbitrage opportunities but even if you have 0.08 percent daily that’s 30% APR which is kind of fantastic for having absolutely no risk and if you were to create an average charge but surrounding this you can create minimum thresholds to do this you could also look at what we’re talking about in other videos which is the convergence of futures arbitrage cash-and-carry arbitrage you give actually way you’re pairing opportunity versus and always earn as much as you could given the difference and that’s basically that so you have the opportunity to earn 30% annual percentage yield every single day just for holding these currencies perfectly as you can see that each other like I said so that a price up or down doesn’t affect anything and you just earn the funding amounts Aarti that’s basically that thank you so much and give us a like and a follow and a share

Make money online! We gave our ai robot trader market maker $5000 to trade bitcoin & ethereum with!

hello and welcome to this next video in the series by going next limes my name is Jared daun I’m chief we putting the officer joined a club and we’re going over some points about performance whether I first thought we have on offer for our software as a service platform so today what we’re going to go over is the historical performance of getting it $5,000 and trade with um and then seeing what it did to during this time there was a spike in Bitcoin price went up by about three hundred dollars in the course of about five minutes so we gave you our AI powered robot Raider market maker five thousand dollars in trade with and it survives pump and Dom so let’s take a look what that looks like here you can see I just zoom in this chart here this is the Boz performance over time the blue line Keenan is the Bitcoin US dollar value over time the Green Line is our percent returns in Bitcoin and the black line is our percent returns in u.s. dollars so we have a hedge on this account meaning that um I can actually show you what that looks like so here’s our trading account it’s got this many bitcoins to trade with which is about five hundred dollars it’s uh forty three hundred dollars right now but some of the money is actually in this head doing Kevin here so we take the total US dollar value for both of the accounts so there’s actually a fair amount of in the hedging account here six hundred and forty nine dollars so as you can see our box actually up just over four thousand dollars there was some fees when we purchase big white as well so we’re up a fair bit and we’ll go back to the shirt and review that again at the end of the chart what we gain two significant amount over a short period of time but for now uh it was about $5,000 with a Bitcoin that we have in both these of counsel in this hedge account we should see what when we scroll down here an open position or a set of positions totaling five thousand US dollars short meaning just having sold Bitcoin and that will protect against the price of Bitcoin going down our US dollar returns will remain equal based on these shorts so you guys here we have exactly five thousand dollars shorted which is what we expected over these three contracts so if we go back to our graph here you can see that the price of Bitcoin here on Thursday April 2nd 14 20 local my time the price of Bitcoin was about six six six six so I’m going to say this is unlucky I think it’s a fairly lucky number because right then Bitcoin over the course of the next geez hold on I guess it’s right here that counts this this bike here from from six eight nine eight all the way up to seven one eight one lesson just reading this chart 11:06 by the way Bitcoin gained a significant amount of value in a short period of time and what happened to our Bitcoin returns is that our Bitcoin returns went down because the value of the shorts decreased over that period of time but our US dollar returns remained almost exactly equal over the giant pump on that occurred here on Tuesday and then if you can see our wider chart here from the beginning of the box running till now you can see that near the end here we we increase the order size and change some of the maximum skew logic and all that fun stuff so there’s a whole bunch of things that go on behind the scenes to make our market makers more successful and and optimize based on the level of risk aversion that you would like to have so you see here in India spiracles meaning that we traded more often we traded for more value and if I just zoom in here this is very slow come on computer come on computer you can see that as the coin fell in price by about $300 on our Bitcoin returns in the Greenline have gone up to nearly 5 percent and our US dollar returns have gone up to nearly 5 percent as well on equity I mean the last she’s out and on 16:16 day and a half I guess that this charts been running which is kind of fantastic so how are the other subscribers doing well we can go to this screen here where I have a list of everybody that’s subscribed burning the blog right now some of them are not using the hedge that I just described and you can see that some of them are actually down like uh significant amount of value because of the coin assuming we figure that the price has gone down so their Bitcoin returns using the Bitcoin strategy I’ve also gone down but you can see that these other people running the book when sure to you I’ve actually had a fairly decent run and they’ve made six percent and three percent as of yet in the last two thirds with a I guess there’s also people running the hedge so here’s the values and US dollars denoted better return using the hedge strategy and then their Bitcoin yields from using a hedging strategy and you can see that everybody’s up a fair amount if we zoom in here we can see that we have twenty thousand dollars under management right now not it not just the five thousand dollars not one account of all these accounts they’ve traded one hundred and ten thousand I don’t know this looks like a million a million yet 1.1 million dollars those well traded that’s the contrary to US dollars in that back again over the last twenty four hours or something and then we’ve earned collectively thirty four hundred dollars in fees that’s one of the ways that the blog runs consistently is with every trade that it’s doing almost every trade they earns a little bit of fees and collectively are one two three four five six years I’ve earned thirty four hundred dollars in the last day the average winning projected on Bitcoin returns daily is thirty five percent on the equity and divers US dollar returns is twenty six percent on equity daily these rallies probably will go down so don’t get too excited as time goes on because they get more accurate when there’s more data rather than a smaller sample size because you some bees have only been running for a short amount of time and some of them are up to 2/3 of a day or so um and that’s basically that um that’s how the boss been doing over the last little while um basically ever since we incorporated the coin decks proprietary artificial intelligence to move on um the returns have skyrocketed and we’ve got much much more profitable as it as it predicts the volatility going forward into the future and then I can incorporate that into the logic of the bot to make sure that we trade the less often what we don’t want to tell you every so often this list refreshes which you can see now they’re still updated as the other BOTS wearing in with their performance should be less than a minute before we have all the missed list again these list rather but that’s basically it I think that you guys should review the other video that I had which actually outlines how to take part in our Friday limited free trial because I think that’s important and you can also review who we are and what our value proposition is and hopefully make up your minds so you try this out for the trial already well thank you so much guys and I will post the links and relevant information in the description here I think you guys have really lucked out by finest I have this early stage alright thank you

Make Money Making Bitcoin Crypto Markets Market Making Fee Rebates – Better than Stocks to Buy LIVE!

hello welcome to this next edition in the series of coin dicks louses inaugural market-making bought how it compares against the competition which is in a separate video that’s re published and how it earns on fees and futures convergence of prices and the spread so the spread is actually a video that’s already done and you can view that on our channel well you’re looking at our channel feel free to the liked it subscribe and share everything you see that you like and spread the word all about capitalizing on inefficiencies and markets one thing we’re gonna look at today on this video is if you can’t beat em join em number one make money making markets market making fifty rebates and well that’s a handful to say um it is actually in an absolute fact true for exchanges like bid mix and Durban and cracking and BitFenix and buy bit and a whole bunch otherwise you’re actually able to earn a part of the marquee if you’re able to make on the market rather than take on the market um and what does that mean exactly well let’s have a look at an order book so no open up my dear bit where our market maker is currently widely look great I’ll show you what I mean so we’re posting these trades as post only orders which means that if it were to be instituted on immediately um they would it took a break here because we’re too volatile to trade yeah pick one quadrillion dollars in the course of a few minutes by the way we’re doing post only orders which means that if we’re trying to make an order if it’s gonna be immediately executed against instead of going on the books that we don’t make that order which means you current fees every trade so if you’re to make a limit by order for less than the current price that’s gonna be making the market if you make it one bit sell order for more price that’s gonna be making the market and vice versa so when somebody acts against your order you get Uribe let’s take a look what the fees look like we actually have preferred fees and I’m in the wrong category we have prefer fees with their butt and a few of the other exchanges which he can have all five for if you do it enough trading but let’s take a look at their VIP treating feeds I don’t like your data management show you something to eat judy judy judy judy are logged in let’s take a look at the training fees on their butt and just to compare let’s take a look at the trading feeds upon fitting X now I like where this levy on it a lot better you know a lot smoother and a lot more able to handle large amounts of flooding among all the users by the way let’s take a look the Bitcoin virtual and futures fees here you can see the maker fee is negative two zero two five percent meaning that we burn 0.025 percent for our tray that we make the market on and the date Rafi is zero point zero seven five percent so if you’re taking against the books and your orders of B execute against keep a this questionnaire fees and then bit next it’s a third of it it pays the person it would be market that they keep two thirds of it for themselves so what does this look like we actually going to look at their of it too but you can see here that for professional in futures beyond Bitcoin it’s the exact same price the exact same rebate and and take your fee as we were take against the market so let’s take a look and so in my trading screen here you can see that I reduced market to close out my positions here in the last trade but all of these other trades that the bot was doing the Poland xlab’s market making bought that we have on trial right now for a five day free trial on all of these trades has been doing negative fees or earning fees every single time two trades and this adds up over time this is not our best market making account this is my market that they encounter which hasn’t been active in a little while but it should probably see some keep a little fees here under statistics now it’s not a big example mr. counts on the negatives able to thank debit account but all altogether in 2019 it’s it’s burned about one two three Bitcoin and since it started these more recent stats are from developing the bar that having market-making enabled or rather taping enabled I wonder if I can log in to our actual running market maker is it on this other whoops I think it is dere yeah I am logged in here so I’ll show you what the expiry base look like on our live trader that’s actually doc laughs you say that to get balance too late over the last 24 hours or so it’s gonna be a fair amount of it one that we burn so you can see here we traded almost ten Bitcoin and we learned while we didn’t earn actually because we did some market rates but that’s okay and a lot of seven days we’ve done this many Bitcoin hundred and fifty two and we’ve earned zero one zero two just over 0.02 Bitcoin feeds and that’s one of the ways we make money using our making market maker so thank you very much and I hope you do the video and go check out our other videos and like to share and subscribe and join our discord and take a look at the SUBSCRIBE endpoint on our website which looks like this or index lung performance line and subscribe and we’ll see you on the flip side when you start your five day free trial bye

Better than Options Trading? Why Bitcoin BTCUSD Shorts Do Better in Down Markets, Hedging Exposure I

hello there people the Internet I just want to say that on our first day of YouTube we had some fantastic results we have four subscribers so thank you everybody so much for the interest we had a number of views that don’t show up here on this view that they do well actually I’ll show off this first we have some suggested videos traffic which is fantastic I growth act you read it and got a bunch of clicks we got 27 percent click-through ratio what I wanted to see bill was somewhere in here we can find doo doo doo analytics so um I actually just asked a friend to pick a random number see we have 98 views I guess in real time over the last 48 hours which is less than 24 hours ago I just asked a friend to pick a random percent between a random percent actually she chose 34 percent which is about one third we have nine pending videos here and three that I published so far out of the nine pending ones the one that comes in about one-third or 34% through is why more profit only on dumps that’s what we’re doing right now shouldn’t it do well in pumps then I’m explained here the BTC USD shorts which is gonna be our hedging enclosure one video this is gonna be three or two so we’re gonna do this series now on hedging exposure and I guess we’ll open our usual notepad document to take some notes also I want to note that I made a tweet here I noticed that Khan Academy and I actually asked you guys to search up Khan Academy if you wanted to learn more about arbitrage in my last video and here’s a screenshot actually of their YouTube in the background while they then summarize their there they’re learning that I’ve learned many times through them and shared many times I guess their servers are at 250 percent load and they’re asking for tips and brave attention tokens and you can actually read more about great tenshun tokens on my blog I have a whole category for it and learn how to browse privately while earning for viewing ads and how do we do that won’t we look at my category a breathe browser here so I’m Jared daun I’m chief liquidity officer of coined xlab’s the point of these videos is to both educate and also give some a some explanation and and and coverage and publicity for our inaugural market-making bought we’re gonna have a number of different plots in the future but let’s discuss why our market maker sometimes goes down in USD sorry goes down in Bitcoin while remaining the same returns or better in USD and we’re actually seeing that in real time here with our subscriber tickers so all of these subscriber tickers here are the profits and losses in Bitcoin and then all of these here are the profits and losses in the US dollars so my friend asked me in chat or my support rep actually asked me in chat he said why does the bot do better and let me find a good example of this why does the bot do better when the price dumps so here’s a good example you can see the green line here is our Bitcoin returns in percent the black line is our US dollar returns in percent and the blue line is the Bitcoin u.s. dollar price over time now you can see here that when the price goes down significantly the green line goes up by a whole bunch and when the price goes up significantly the green line the Bitcoin returns goes down while the US dollar the black line remains about equal it had a little spike here probably cuz there was a there was a difference in the contracts that were outstanding on the account but marketing account but as you can see here as the price goes up and down the black line remains about stable we probably found a better example of the black line remaining stable while all that happens earlier after the madness looks like our short wasn’t really working the way that I expected either way the idea is and maybe I can show you the chat where this happened I want to know why does the perfect only one price goes down this is the concern of support rep patty so why does this happen first off let’s figure out what is hedging but a general sense when we have an open position on a market and I’ll show you a different example hedging to explain hedging and it may have already done this in another video and I may have closed my other three window so if you hold a position let’s say you long or buy Bitcoin on the derivatives extremes by a thousand dollars in big what happens if the price goes up and what happens if the price goes down and let’s say what if you hold a position for selling or shorting thousand bikal thousand dollars unthinkable so the price goes up if you have bought it or longed it which I’m just along if the price goes up the value goes up if the price goes down your value goes down conversely what happens if we short the Bitcoin or make a can’t make a make a position where we say that the price should go down the want the price to go down we shorted it if the price goes up your short goes down in value meanwhile price goes down the short goes up in value so knowing this how can we potentially guard against risk well I’ll show you in real time with our market making bot that we have on live map you can see that it’s short or we’ve sold these features here for about $3,000 worth and we’ve longed perpetual year now given a market where these basically for the difference in price of these features in this perpetual stay about the same so let’s say the price of Bitcoin on unspotted exchanges or where you can buy it and actually hold it goes up by hundred dollars it’s supposing these all go up in value by about a hundred dollars at that point it’s not exactly a science like that because there’s different complications that happen in efficiencies in the market and that’s actually a good thing and there’s one thing that our our bot does really well exploiting and to tell you the truth that’s why these features are short and these lungs are better than these these perpetual czar long if you take a look at the prices up here you can see that the price of the perpetual well let’s take a look at the average price here the average price of hmm maybe that’s not working away and I expected to either way what should have happened to exploit risk to exploit the inefficiencies and I’ll have to ask our CEO to have a look at why these are short and long the way they’re so let’s say futures are high higher in price than verbs we’d this is just a side note by the way and we’re gonna go into this in more detail in a different video when I create the eyebrows video for cash and carrier carry our charge we short the features we’ve long the perpetual x’ when price of features goes down and match comes closer to dividuals we realize gains on the difference in those sorts and so again we’re gonna go into that more detail in another video and I’m just gonna go ahead and copy base list into chat right quick to see why we’re on the opposite side of this right now or if I’m just understanding it correctly cuz that’s a possibility too and the potential is that these just looked recently and we haven’t caught up yet price buying and selling to be opposing be on the opposing side but either way that’s the idea with cash carry arbitrage for futures and perpetual contracts but let’s go back to how do we guard against risk so in the situation where shorts are kind of betting against the price going up and Long’s are betting against the price going down and you can see that in real time here with the trader because it’s long all of these professional contracts and in short all these futures the net difference is around about zero and the ball actually tries really hard to make sure the net difference stays around about zero and if that difference gets to be really skew we call it if and Askew gets to be too far in one direction it stops buying or selling and it forces itself back down to and that skew of or in that position Delta house zero and what that means is both hoarding and longing the same underlying I’ll call it because these are derivative markets allows us to guard against the risk that the price goes up or down while maintaining these positions individually so if the price goes up or down by a significant amount when we’re close to net zero all in all an on average the price movement won’t affect our returns all that much this is good art is profiting as you see here it’s profiting a number of different ways and I’m going over this in my other video all up the other video again here but I’m just gonna show off these fees easier that I’m earning in each of these cases for each of these orders that have executed I’m also learning positive profit Google’s move it the thing is these fees here are negative which means I’m earning the feet in every single time I trade I’m earning a little bit please and I can actually show you look like somewhere in here in my settings come on there bit I’m gonna close that up facebooking these peoples keep on dinging me so people assisting notifications where am i it’s not loading settings come on guys system sounds I should say not system in notifications dear but I don’t know what you’re doing but you’re not loading the inner guys alright well we’ll let that load if it wants to by the way on the settings page there’s a real there’s a link to statistics and insight statistics we’re gonna see our total trading volume as well as fees paid over the last few intervals so over 24 hours I’ve earned this many bitcoins and fees in total over the last seven days I’ve earned this much and over the last thirty days I’ve earned over a hundred the pub it coin and that’s not even that trivial of an amount considering the fact that we only have point 1 in this account but let’s go back to the point of this video because we’re gonna learn all about the fees and how to earn feast in a different video that’s coming up so again both shorting and longing the same underlying allows us to guard against the risk that the price goes up or down while maintaining these positions individually and that’s what hedging is hedging is guarding against risk in any case so there’s a whole bunch different kinds of hedging and this actually hold institution setup that just edge risk while maintaining a position to give you more returns and that’s what hedge funds are and that’s what I try to do so hedging is guarding against risk so the point of this video in this series we’re gonna do a few on hedging let’s take a look at there’s other ones there so we’re gonna take a look more at the purpose in short and the features long or vice versa in a different video but it’s just a good example to show you hedging on the interface while I while I create this video and will go into more detail but how that works and the the total process that is involved there in this other video we’re also going to take a look at creative order sizing and changing the size of the orders as we go and I’ll take a look what that looks like just to show you a little preview in order to hedge using the order sizes man there’s not really a good example of that here is we have a small balance they’re all about 30 huh but we can change the order sizing in a different video to show you how that works practically so this video again is how do we hedge using a short on Bitcoin US dollar against the risk but it changed downwards in Bitcoin value will negatively affect our US dollar balance so let’s think about that so if we hold BTC I want to change the hold on if we hold bdz the price goes up price goes down and what happens to our US dollar returns when so we hold Bitcoin on an exchange like that because that’s how they do deposits and that’s how they value their currency they don’t hold US Dollars and they don’t trade against US dollars so we’re holding Bitcoin same same for bit backs and a few other exchanges so when we hold Bitcoin but we’re risking US dollars if we’re risking institutional funds and commodities fund we will risk institutional funds and prayer software-as-a-service if you’re deciding whoops where am i sorry okay if if if you were running our bot and you should check out the first video to learn more about the block and their five day free trial check out our video so if you’re risking u.s. dollars then you want to hedge or protect against the risk that your US dollar value will go down while on the exchange your your your currency that you’re holding is this Bitcoin what happens to our US dollar percent returns or returns that were realizing when the price of Bitcoin goes up and the price of Bitcoin goes down well we just saw that on the chart so when price of Bitcoin goes up our US dollar returns go up to US dollar returns go down to but if we want to optimize for US dollar returns and we care less about our Bitcoin returns how can we do that how do we use a system or a process to ensure that a Bitcoin dollar epic one price movement downwards like five percent would be critical and I already told you um the answer is that we use a separate account with a separate balance too short or sell the Bitcoin for a percent of the balance of Bitcoin held in both accounts and to tell you the truth I need to fix the bot to do exactly that right now it does market making I can’t do both mmm and edging okay now housing is optional in our software so as a service model we have various directions and the emails that are set for and we had various explanations of what’s short selling the Bitcoin for a percent of the balance in both accounts would look like so if you want to optimize for US dollar returns and hedge against the risk that the coin price goes down especially significantly then we short sell the Bitcoin for a percent of the balance what does this look like in practice well at least we know in our BOTS very active come on but um I think that our hedging account right now doesn’t have a balance so I can show you what this looks like yeah it’s negative balance it’s negative equity because it had a balance and then it the price of Bitcoin went up too much and it liquidate which is not good for equity returns but it’s good for debugging the board and making sure that it’s more failsafe so if we take a look at our hedging account you can see that it has no positions if you go back to our main account we can see that we have come on debit come on David they must be under loads people are trying to get into Bitcoin when everybody’s stuck inside learning it for the velvet coin I really wish I could find out my balance gand maybe I can for my bought interface so my balance is this many bitcoins Wow in 0.09 anyway we’re gonna need dairy but to work and we’re gonna do a little transfer funds though so I hope this little this speeds up leave 0.0904 I think balance so we want to risk about 10 to 20 percent of that in our education and then our hedge will open our short account will open a short for the US dollar balance value I don’t know what is going on and all of that is automatically bought not all of it I need more of it will be an automatic in the future the bond will automatically balance the equity value of the head you can so right now we have to transfer that money in ourselves but it’s not going to work it there if it doesn’t work maybe we just hit the back button enough to get to about so I want to put 0.0904 Tom’s point to you is this many bitcoins and debits really not loading guys so we might not be able to finish showing what this looked like is it my internet that’s messing up nonce long I just times alright he’s doing stuff now I think transfer I think if I log out and log back in I might need up my bosses kyc code let’s ask him if he can transfer the balance balance balance for us and it’s working nice let’s transfer some balance to the hedge account now we’re going to notice the hedge account is going to automatically by the time we load it probably open some shorts and we have a zero point zero seven bitcoins left in our main account which is four hundred and forty six dollars and we lost connection again so we should see a short for 446 dollars in our hedging account come on dear a bit it must be a very very busy season for you or my Internet’s just not up to par how to now well I wonder if I can fund entire logs our logs aren’t as legible unfortunately I was looking at the interface but some way I’m here it should have said that it’s sold some contracts my loss my logs I have too many logs so it says our USD short now is negative 480 dollars these are in contract so you multiply by 10 so it did short sell the value and the US dollars we just can’t see it unfortunately with the debit interface well I’m gonna stop waiting and hopefully this maybe if I just logged out log by again it would work I’m sure it would I just can’t right now because I don’t have access to key YC and my CEO is that was bonding and he’s depth kyc I’m I the way we do know that it shorts out the way that we expected it to when we transferred that balance in and it would have done that across the perpetual and the three futures the two futures rather that are open here perpetual and 2625 it would be handy to be able to show you but I the way you can look at my other videos I do show the short account and a number of that other videos I can’t think of the trends right now and I show that it has a balance for the u.s. dollar balance in the main account and that’s basically the gist of this video so stay tuned we’re gonna have other videos and gonna see more performance and I hope you guys are able to subscribe and like and share this video and the other videos and then review our offer on the 5 day trial in the initial video take a look at the other two videos too because they have interesting subjects like how to set up the bit mix and sorry the bit mix and the dairy bit sample market make makers no that’s the wrong one and then also how to arbitrage in general and profit off the side and a demo FTX and that first video later hold on so thanks kindly everybody had a wonderful day I hope you guys are staying inside and staying warm and learning lots about how to trade and trade algorithmically and trade using BOTS I think that this is a lot of fun and I hope to bring you more interesting videos like share and subscribe already thank you

Better than Bitcoin Mining! Leveraging Arbitrage, Market Making 1: Profit on The Spread (Bid vs Ask)

hello people of the internet and welcome back to this next in our series on I guess the utility of different aspects of automated trading and algorithmic crypto trading and all that fun stuff so today we’ve done a little video on the Dara bit and bit mix sample market makers and how the coin mechs labs market maker is better than those market makers as well as an introduction McCoy Index labs some more details around our market maker and how you can sign up for a five-day trial and I’ll put the link to that here with the little description I had in my other video so today I asked or not today I guess this is the third video today so next we’re going to look at a random video I has planned for the future which is the sixth one ask my friend on Facebook to pick around random number between 1 and 10 because I have 10 videos but I’m planning on doing and I’ll give you a sneak peak what those look like here’s the sixth one leveraging in the one we’re doing right now leveraging peer arbitrage in America making number one because we have another one for peer arbitrage coming up after this and this first one is gonna be profiting on the spread which is the differences in bid and ask or buy in sell prices on different exchanges specifically on market making rather from from Eric it making maker rebate exchanges like bit max and David and the phonetics and Greg giving all the other ones we have a number of different arbitrage videos including these two cash-and-carry arbitrage videos that are coming up and a number on hedging exposure as well as a number on how to join the elite and fair in the fees and impede discounts of some of the world’s largest exchanges so I guess the first question that I would ask if I had no idea what I was talking about is well what is arbitrage what am I talking what are did and asked so arbitrage there’s some really good videos out there if you just want to use your favorite search engine and looked up arbitrage Khan Academy or actually what’s probably better than that is going to YouTube and searching up arbitrage Khan Academy i recharge basics put-call parity arbitrage arbitrage in features contracts hedge fund strategies put-call parity arbitrage to look at all of these educational videos about arbitrage so I think in this herb chugs basics video they go over the cost of apples downtown and uptown yeah that’s a great example that explains about arbitrage is if I have one Apple if it’s one dollar and Apple downtown and I can sell those apples for a dollar and fifty uptown on the same day I would buy ten apples for ten dollars I would walk them uptown I would sell ten apples for eleven fifty which is another month this is basically the difference in inefficiencies among markets so the fact that it was 11:50 at the other market just means that these markets had an inefficiency between each other and basically by doing this let’s say I did it 100x let’s say if I bought ten thousand apples the price would go up in the market where I’m buying probably dill eleven dollars hundred eggs if I sold and some apples the price would go down in the market where I’m selling actually probably to about eleven dollars um this is the effect of supply and demand and there’s a whole bunch of different theorists out there that give you a whole bunch of economic theory and practical assignments and all that fun stuff that you can learn in macroeconomics at university if you wanted to the rundown is that if there’s more supply the price goes up and if there’s more demand the price goes down and what they do is they meet financial equilibrium which is the balance among supply and demand that means that any arbitrage opportunity which is what we just did when we sold these ten apples for 1115 we realized a risk-free profit of 150 and that’s what advertising is it’s risky realizing risk-free profits through buying and selling stuff that’s basically what it is arbitrage disappears as inefficiencies are acted upon by the people and parties in the market so when I bought my 10 apples and then sold them I made a buck 50 when this person bought and sold ten thousand apples the price eventually fell in rose to eleven dollars in each case but as it did so they realized whatever that difference is they’re like $100 $150 and up two hundred and fifty dollars in profits but now the opportunity doesn’t exist anymore because the price has gone up and down to eleven dollars what is arbitrage and what is our George well that’s basically it so what we’re doing today is were arbitrage in the bid enhanced on a specific exchange so I can actually look at my live trading arbitrage market-making bought which is actually up more Bitcoin than it was earlier today when I took my other two videos from actively trading Bitcoin and what I mean by arbitrage in the bid and ask I wish I could find a better example maybe I’ll find a better example on fit max actually I’m definitely well on FTX I want to look at a futures contract or a perpetual contract let’s see if I can look at the June contract and all these are just different markets for different coins and tokens so yeah this is a much better example of arbitrage Roma didn’t ask so here’s my bid prices in my highest prices so before we get into what the Irish are getting asked is let’s ask ourselves what is the bid and ask the bid is the buy yes is the sell so basically these people are willing to sell this asset which is a futures contract that’s settling sometime in the future June for Bitcoin so basically I say that I want to buy or sell the ability to buy or sell Bitcoin in June for this price so this price won’t necessarily be the same price as I’m the professional contract which is the price of a Bitcoin as people I think it should be now it’s what people think it should be in June so right now these people are willing to sell me the ability to buy this futures contract for this price is the lowest price that’s the best the lowest ask are the best ask for the best offer this is the best bid for that contract the bid is the highest price someone is willing to pay for that contract at that point in time so the the best prices here are called the best bid offer which is the best price that you can get for buying or selling which is what market making is considered concerned concerned with because we want to usually and the price is just above and below that because we want to make both sides of the markets we want to both sell and buy usually in most cases unless we’re hedging against ourselves or otherwise risk averse to it and basically buy or sell and basically realize a few different ways to profit one of them is what we’re going over right now all of these YouTube videos go over the different ways but in my notes for one of these videos that I did earlier I go over the three main ways that we generate revenues using the market maker which is right here the video we’re doing now earning on trading rebates instantly it went almost sorry not this video sorry we feel we’re doing now is this one earning on the spread itself on average which is pure arbitrage the next one we’re gonna do a couple videos actually on the other way that we can earn using market making using the coin decks trading BOTS and provide Terry patent-pending artificial intelligence that predicts our volatilities and optimizes our input variables which is the convergence of futures prices to perpetual is known as cash-and-carry arbitrage which is just different kind of repertoire which I’ll go over in a different video or you can review on that YouTube Carnac I don’t I to me folks videos before I get to him so this itself how do we arbitrage this bread well because I just gave you this great example on FTX you can see it right before your eyes so if I was to buy some of these contracts and we’re just gonna choose to the prices that pop up here so it looks like it’s staying around seven eight seven five five eight seven five so if I was to buy one of these contracts for Bitcoin in June let’s say I buy a whole one of them now let’s say about two for the well actually mid sized BTC so we can only buy up to this much that’s the inefficiency that I was talking about so let’s say if we wanted to buy a thousand Bitcoin worth of this futures contract the price would go down significantly while I do that rather yeah because I’ve bought all of the Bitcoin contracts that exist I bought these 20 years in this 8 and this one and this 32 and the price we just go down and down and down until probably around here where I bought my thousand or not I said a thousand so to go down even further we can see in this list because we’re buying up all the Bitcoin that exists on this exchange now there’s lots of more Bitcoin available on other exchanges for the June feature so the price would equal out to an equilibrium a lot faster and a lot higher than what I’ve bought it down to and Wales or people with a lot of Bitcoin or or crypto or any kind of traditional capital will use that to their advantage to manipulate markets to get some quick gains by the way we’re gonna buy two bitcoin contracts for 5875 we’re gonna spend this much money on it we’re gonna do it at leverage a 10x leverage so it only really cost us this much to do of our equity but we do have the ability to liquidate should the price go too far down next what we’re going to do is immediately after that because the markets are right here I’m gonna sell those to Bitcoin futures contracts for five eight zeros four five eight eight zero point five so 2.0 equals well what is that equal actually we’re not gonna worry about the leverage let’s say I did spend eleven thousand seven hundred fifty dollars at 1x leveraged or on a spot exchange don’t do their spot exchanges for features but you know what I mean let’s say I just didn’t have leverage is easier to explain then borrowing the money so if I sold two of these and I sell them for this much and what’s the difference there well the difference is kind of substantial differences love dollars but that eleven dollars is $11 I’ve realized nearly immediately because I’ve sold of the best bid and offer the president’s gone down but look about at the price to buying it’s also gone down so in case I didn’t sell it immediately I can just buy more and because these are features and because they’re leveraged I could also short more or sell more than I have hold what this means then yes is that it can hold competing balances of shorts and Long’s now let’s take a look what this looks like on my debit console or terminal or interface where I have the coin decks labs live trading algorithm doing its thing it’s got 12 open orders it wants to sell more than wants to buy those must be old sell orders that are update here in a second because it is oversold right now and it’s gonna work to bring that net difference or that that hedged purple you see the professionals are all sold and the features are all bought so it’s actually balancing those out to a net 0 different set of times and look at that is buying more now so if you take a look at the trade history let’s take a look at the transaction mister transaction law so what does that look like well that’s a bad example there actually want just one feature of Esper one let’s do BTC perpetual alright so let’s take a look when was the last time we bought any BTC professor one all right so looks like we closed some positions here remember I said we could have sold it before we bought it back so it looks like here I sold 60 con $60 worth of BTC perpetual I sold some more of her before that first for just a little bit less and let’s just concern ourselves with those for now over the average these all work out to be rather profitable you can see here in one of these columns my change on my balance on my count [Music] positive in each of these cases so I sold all of these perpetual contracts 60 60 60 60 and I did that within seconds and then nine seconds later I went and I bought out of those contracts for less than I paid for them so I buy low and sell high I bought them all about these ones even cheaper a few seconds later and a few seconds after that I bought them way cheaper and look at my realized gains on the way cheaper ones now these are all fractions of a Bitcoin but keep in mind um there’s a lot of transactions I wonder if I can search by 3rd mar 22 2013 or not June not 2016 as 19 mar 30 years ago zero zero zero so if I look at Paul luggage from today um I can see that I have more than 100 entries if i download these the Hogs and what is today now this is in UTC so it looks like this is one hours not even a whole hours worth of logs that I just downloaded and I see how many trains we had in less than an hour I don’t want to restore my dress I don’t want to I just want to open the one I downloaded guys so in less than an hour I’ve had a that’s so done it’s gonna be – – really long oh this is more days than I want it way more days it’s – less which means it’s 104 rows I’ve had 104 a row or trades well let’s actually look at a full hour well no I guess that is a full hour because these ones that are 25 past the hour it took a little break there I must have noticed some volatility it did cuz check it out it closed out of a quote at 25 out to the hour it closed out of the positions that was then and took a little break whoops I lost track what I was doing anyway we have 104 trades in 50 minutes did I say 100 and 200 for which is pretty good I wonder what that works out to before / time wait aa 15/16 times coming forward that’s eighty six and two-thirds trades a minute and it’s been doing that for days indeed he’s now and it can do that while I sleep which is a pretty cool little factor eighty-six trades a minute an hour rather so that’s 2080 a day I wonder if manual traders can do 2,000 trades a day and I wonder if they can earn fees on each of those trades rather than paying fees each and every one of these trades in that transaction long that I just downloaded our negative feeds meaning that we earned fees on each of them and we’ll go over the fees and all the other arbitrage opportunities in all of these other videos that I’m just about to post and then next few days all right thanks folks