Market Maker Bot Signals Overview

Introduction

Deciding when to buy low and sell high is the key to any automated trading strategy. We’ve been incorporating many theories in our bot as it evolves over time, and this post will summarize them.

RSI

Don’t buy RSI over 70 — don’t sell RSI under 30. Simple. RSIs are minutely arrays in 6 second update intervals separated into 10 instances, checked against the minutely values from the previous 14 values of bids.

Bollinger Bands

Don’t buy over upper BB band. Simple. Same methodology as RSIs except over 9 minutes.

Tiered Buy Orders Down the Books

As the price declines, and we submit buy orders that turn into trades, we submit smaller buy orders for lesser prices. This allows us to scrape differences in the books easier than holding a coin until it appreciates, and allows us to profit more from holding more and more coins at lesser and lesser values in times of volatility — all else remaining equal, and after you apply a law of averages that equates to coins gaining and losing less differential than the income you’re scraping. There’s a 3 minute delay, though, before placing a new buy order for a pair — to avoid holding too too much before it regains and we scrape, mind you!

‘NeverSellAtALoss’ Minimum Sale Prices

Next, we enable a minProfit * buyPrice ‘minimum sale price’ per tiered buy order that gets executed. This allows us to ensure or project that we’d earn a certain % per trade, and we can also project what our income might look like should we pay lesser and lesser (even get rebates on) fees. We can be buying and selling, we can be selling, we can be buying further down the books — we’ll always anticipate a certain level of income from each individual trade.

Application 1: Mediumish Liquidity Coins with High Spreads

For pairs with >% spreads and lesser volumes, we can profit more per trade (and after fees) than the Application 2, even if less trades are executed — while enjoying potentially more tradeable pairs. We’ll hold our coins longer and risk more exposure from some of these coins tanking, but hope that our minProfit is earning enough per scrape to combat that — and historical trades by the dev bot and community bots attest to this. Also, fear not shit coins — we take the most recent hourly candle and compare the value of volume there vs. the implied volume on the 24 hour ticker, then take the best candidates — according to a variable set by our users. The right combination of overall variables allows us to see profits of 1, 2, 3% daily — although not riskless.

Application 2: Huge Liquidity Stableish Coins with Low Spreads

Conversationally, we can eliminate some of that risk in Application 1 by trading stable-er-coins that shouldn’t die when we hold them — and we can trade far more often, and earn a lesser percent on the spread but as the dev bot and community bots have proven the configurable variables involved here have the ability to turn quite a hefty profit — while the risk still remains you’ll hold a coin that then turns sour, and if you’re trading more often that risk might multiply should your settings not be just right… however as above we’ve seen gains of 1, 2, 3% per day!

Conclusion

Whatever combination of variables you dream up on whichever exchange, your odds increase significantly with volume — we’ve seen balances as little as 0.003 btc turn 0.2, 1.4 btc/day in volume — get in now and achieve a significant reduction in fees to earn your own tidy little pile of (potential) returns!

FUD and FOMO

1. NeverSellAtALoss ‘bag’

Position with negative profit but don’t want to sell at a loss and realize that loss so you don’t sell. This creates a BAG that you carry

1. Scrape Enough to Not Worry

I played with a variable that incremented a divisor that started at 1.0001, then after x number minutes it reduced the min sale price by 1.0001, and increased the divisor to 1.00121 or whatever, but,… with the tiered buy orders all the way down, the goal is to always sell an individual order at a % profit while it scales up and down the books. The theory is that all else remaining equal — and with the law of averages saying stuff will decline as much as it inclines, if you index enough pairs and lessen the risk of any one breaking the bell curve — with the right spread, volume, minProfit, the scraping should outweigh the ‘bag’

Binance, HitBTC, etc., Market Maker Pitch: How To Get Rich Online

Cheap VPS

http://techvoices.club

press ‘all’ after about 15s

Case in Point

Imagine this hourly graph without the steep drops from paying fees on the green (buy) lines:

As a follow-up to this:

https://hackernoon.com/making-markets-moving-crypto-free-and-open-source-binance-9bcea607e57b

https://github.com/DunnCreativeSS/privateMarketMakerRepo ** ask for access **

TL;DR join us here https://t.me/themarketmakerbot

Elevator Pitch

Market making on Deribit and BitMex failed because it counted on the market to remain more or less stagnant on the 0.25$ step. We’re now looking at automating two market making strategies for smaller volume, higher spread pairs.

Market Maker Trader

We buy just above the highest bid and sell just below the lowest ask. We repeat this process, using a fraction of account balance in base pairs, until we see the net profits as price fluctuations cancel each other out in the approaching infinity sense — while we soak up profits from the spread itself in the ‘relative orders’ strategy.

Conversationally, and not coded yet, is the ‘staggered order’ strategy, where you pick a maximum and minimum price for that pair and then stagger orders up and down the order book to buy and sell along set intervals.

Resources: Would need servers close to different exchanges.

Scalability: More coins; more scale

Pros: I’ve had 0.57 bitcoin volume on my deposit of $18 worth of coins on the ‘relative’ strategy in the last 24 hours, while sustaining about -0.5% growth. There are other exchanges (some with margin) where we can reproduce the bot, like bitfinex/ethfinex who have a market maker rebate paid monthly in their proprietary coin, or liquid who has a market maker rebate on pairs that were previously on qryptos

Add’l pros: on Binance I can effect a 20% or 40% income on fees via my referral link, on HitBTC the affiliate program is on pause but I may eventually be able to effect 75% — although the potential gains from HitBTC affiliate are less as there will eventually be a 0% or rebate on the maker fees

Cons: To prove profitable on Binance or HitBTC, you’d need to eliminate the fees or effect a market maker rebate. On Binance this involves volume as well as holding BNB — while still paying some fees, while on HitBTC that only involves building volume first — effecting 0% maker fees then 0.01% rebate. https://hitbtc.com/fee-tier https://www.binance.com/en/fee/schedule On HitBTC there’s also a market making program https://hitbtc.com/mm.

To Prove for Viability

Consistent over all types of markets, but identify when it does better

In the long run, price volatility helps the ‘staggered’ strategy more than it does the ‘relative’ strategy
Less volatility but still having volume, there will be gains from the ‘relative’ strategy
The potential loss is 1. Fees 2. Grabbing a coin that immediately dies, inclusive.
If you’re to eliminate fees or effect a fee rebate, this risk goes down
If you automate many pairs you lessen the negative effect of grabbing a coin that dies
Conversationally, a stop loss can be created to further lessen this risk

Sunk costs of development

None — need to code the ‘staggered’ strategy, which I can do

Scalability given current market liquidity and volume

On exchanges like Binance or HitBTC, with many coin pairs that have significant volume, we can scale indefinitely
The bot currently checks the average volume per base asset, then the spread of a given pair, and enters only into those markets that meet the minimum and maximum volumes and target spread, as well as a minimum order quantity and maximum order quantity (to avoid sh#tcoins)

In base: market pair: volume in base, that looks like this:

{ BTC: { XDNBTC: 69.3393775486, VETBTC: 42.606415325 },
TUSD: { NXTUSD: 67247.7248096, TNTUSD: 53891.073732 },
MUSD: { QTUMUSD: 2545776.043225 },
NUSD: { XDNUSD: 280614.7629689 },
DUSD: { MAIDUSD: 54019.8292817 },
ETH:
{ ICXETH: 589.145211656,
NXTETH: 266.992269315,
REPETH: 616.456689351,
ONTETH: 5359.788369161,
NTKETH: 197.416308344,
KBCETH: 355.311810444,
ROXETH: 311.845628547 },
BUSD: { DGBUSD: 2445.14526651 },
GUSD: { BTGUSD: 141765.29622322 },
UUSD: { QNTUUSD: 29.4731369 },
PUSD: { ETPUSD: 68.5015549, ZAPUSD: 40.1461164 },
YUSD: { DAYUSD: 338.8757426, BERRYUSD: 248.9052084 },
QUSD: { STQUSD: 6039.7474451 },
IUSD: { WIKIUSD: 10575.2656811 },
FUSD: { ELFUSD: 14.04120135 },
URS:
{ ETHEURS: 2486.24206583,
LTCEURS: 1485.789705,
XMREURS: 2807.0239136 },
‘0USD’: { POA20USD: 20.1087685 },
EOS: { LSKEOS: 39.06901764 },
RWB: { BTCKRWB: 44.82036 } }

Forward Tests

This strategy was first coded about 48 hours ago on Binance. It lost about 0.5% in one day, and had 0.46 BTC in volume.

The second iteration was on HitBTC, and as of about 10–12 hours ago has 0.12 BTC in volume (across many smaller orders, instead of the test version on Binance risking everything on one pair).

It’s lost about 0.23% in that time:

My calculations, based on losing 0.5% a day on average with entry level fees and based on HitBTC’s 0% maker fee after 1500BTC in 30-day volume, indicate that after a certain amount of time while trading a certain balance we can effect 0% fees, and therein effect profits:

https://docs.google.com/spreadsheets/d/1U343CX4ghe_Au9Q3QwHZHW8A0WIwwprgP23mndKOzAE/edit?usp=sharing

This is not including the chance we can get market maker benefits or the 0.01%
rebate after 6000 BTC volume.

Conclusion

With enough volume anything is possible. Come join us! https://t.me/themarketmakerbot

Market Making, Moving Crypto — Free and Open Source Binance Bot

# binanceMarketMaker

https://github.com/DunnCreativeSS/privateMarketMakerRepo ** ask for access **

Buy Low Sell High!

This bot automates making markets on Binance.

Where other market making bots fail (ie. BitMex, Deribit, other attempts I’ve made in the past) is by counting on the market to not be volatile. Where this bot wins is by finding markets where we can soak up profits in the volatility by taking those profits from the spread itself, where on BitMex and Deribit these spreads ar 0.25$ of a BTC, some smaller markets on Binance have 1%.. 2%… 5% spreads, and greater-than-average volumes.

You’ll want to have about $20 per market pair it’s looking to trade, in the base asset (BTC, BNB, ETH, etc…). It will look to trade more markets if the targetSpread, targetVolDiv, targetVolMult are higher. The more total funds in a particular base asset there are, the higher value the orders will have.

If for whatever reason a market pair leaves the universe scope of considered pairs, it will continue selling that asset with the same sell logic (on the quoteAsset+BNB market, or BTC then ETH if BNB isn’t available), while pausing buying it.

I don’t have enough personal funds available to run the bot, but I can get a good amount of income if I share it and people use my ref link. targetOrderSizeMult exists so that people can compete using the same bot on the same markets without it just outbidding the other bot constantly, as you can set a % of your order size to ignore when there’s a bid or ask better than yours. When the volume that beats your price is higher than the —

order size * this multiplier,

it’ll re-enter the market.

‘At the current time Binance rate limits are: 1200 requests per minute. 10 orders per second. 100,000 orders per 24hrs.’

There are no limits for unfilled orders, and at most it’ll make about 6×20 or so pairs x 2 orders, 1 cancel and 1 re-post a minute, along with checking balance and getting order books so a total of about ~500 a minute — not close to 1200 🙂

On that note I’ve only been trading one pair, averaging 42 orders an hour or ~1000 per day, again by about 20 pairs would be 20 000 orders per day — a bit shy of 100k.

To use:

1. (please do) sign up for Binance using my ref link: https://www.binance.com/?ref=27039658

2. Place your Binance API key and secret in binance.js

3. Optionally change the targetSpread, targetVolDiv, targetVolMult, targetOrderSizeMult

4. Install NPM and Node

5. Clone this repo, cd into directory

6. Run npm i binance-api-node

7. Run node binance.js

API Rate Limiting?

The first FUD someone might say is that this will lock your API for too many unfilled orders or too many interactions.

‘At the current time Binance rate limits are: 1200 requests per minute. 10 orders per second. 100,000 orders per 24hrs.’

There are no limits for unfilled orders, and at most it’ll make about 6x 20 or so pairs x 2 orders, 1 cancel and 1 re-post a minute, along with checking balance and getting order books so a total of about ~500 a minute — not close to 1200 🙂

On that note I’ve only been trading three or so pairs at a time, averaging 42 orders an hour or ~1000 per day, again by about 20 pairs would be 20 000 orders per day — a bit shy of 100k.

Conclusion

I was originally trading GNTBNB almost exclusively for testing, the first trade is screenshotted. I’ve since opened it up to trade anything it noticed it could trade, made the required spread lower, and let it run overnight. It’s lost a bit of value but it’s also held eth for awhile while not doing anything with it (due to the required spread % not being enough), but over 45 orders (excluding cancelled) with 0.00568192 balance (or so) I have 0.03090300 in volume — meaning that while it lost ~3% BTC and ~4% USD it traded the original 0.00568192 back and forth for 22–23 round trips @ 0.2% fees, beating the 4.5% fees it endured… with more careful settings it should perform better or at least act on less orders and capitalize higher spreads.

If you’re looking to start building your volume on Binance, the easiest way would be to put this bot to work and choose some safer settings to automate the spreads of a few pairs — after trading a few hours with 0.00568192 balance (or so) I have 0.03090300 in volume. While this strategy might not automate profits (at least out of the box), it does trade a whole heck of a lot. If you check Binance’s fee schedule, you’ll see that as you graduate levels of volume and hold BNB then you’ll be treated to lesser and lesser maker/taker fees, which might prove healthy should you have other strategies (especially high-frequency-trading) that would benefit from lesser fees — although the BNB requirements might be high, given the current value of a BNB has exploded. Again, should you use my invite code 27039658 or invite link I’ll get a tiny slice of the rewards, too!

Join Telegram for interactive support and a community!

Jarett Dunn, [21.03.19 15:35]
ok going to start a new set of conditions for a strategy using the bot, mark @ benchmark 2 Estimated Value: 0.00569181 BTC / $22.57

Jarett Dunn, [21.03.19 15:35]
note it held Eth during a major Eth crash

Jarett Dunn, [21.03.19 15:35]

Market Maker BotYou can view and join @themarketmakerbot right away.t.me

Note: I’m available to re-write the bot for other exchanges, to build your volumes elsewhere.

i-1000th idea to make money online via python-chained sqlmaps!

My i-1000th idea to make money online came to me one morning when playing around with Kali tools and gaining access to stuff I shouldn’t have access to. There was a little bit of a moral dilemma that came to play when I thought to myself about the opportunity to see if someone’s password was re-used on other sites when I found 10s 1000s of them in plain text, or create a mailing list to sell like merchandise from lists of 10s 1000s emails on different sites online… but I thought I’d take the whitehat approach and see if I could make people aware of some of their security holes in exchange for the opportunity to sell them security solutions.

#1) Create a pentesting automated script that identifies open databases or other security holes

There’s myriad tools that come to mind to make this process easier, but I found some manipulation of sqlmap and scraping bing results in Python using Scrapy that allowed me to index exposed databases heuristically. I’d target .ca domain names with certain trailing patterns in the Bing results (alas, Google was too tough to scrape and Bing was far easier) using inurl parameters in search.

#2) Penetrate them lightly in a non-offensive manner

I’d save the databases that were penetrated into local files and the resulting logs that had filesize >0 bytes I knew had database names and entry points to find additional info, if I was so inclined.

#3) Scrape contact details for site’s proprietors

Next, I created a like Scrapy script that looked for links on the landing page to other pages on the same domain and scraped email addresses and phone numbers from all associated pages (via RegEx).

#4) Mass mail

MailChimp to the rescue? I’d send them something like ‘your database names are ___ ___ ___ but we didn’t go any further. Anyone else anywhere on the internet with the same freely available tools would have access to all your saved information, like personally identifiable information of your site’s visitors.’

#5) Package outsourced proactive IT security solutions

Create a landing page, sell packages of dedicated time from IT pros (who would have eventually been located overseas at a bargain) and it’s go-time.

#6) Repeat

Then, after go-time, is time to repeat the process.

What kept me from capitalizing on the internet in such a manner? I’d sent an email to my lawyer and said ‘exactly how exposed would I be to legal action that would damage me with the above plan’ and she wrote back ‘let’s sit down and discuss, but first we’d have to work out our retainer fee’ and at this point in time I was broke as sin — looking for ways to capitalize on Bing Dorks — so I didn’t move forward.

Like what you’ve read? Give me a follow and make sure to watch Hackernoon progress as it moves away from Medium into a new and improved platform for stories exactly like (and far better than) this one!

Opensource Reddit Sentiment Analysis and Sentence Randomizer

https://github.com/DunnCreativeSS/redditSentimentCombiner
  1. Connect to gsheets for later: https://docs.google.com/spreadsheets/d/1rX4mniePZLIUCIFd7H2EdMioR_ip3LhtAjxJ2VclvXg/edit?usp=sharing
  2. Connect to Reddit
  3. Load top 1000 /r/bitcoin hot posts
  4. Take the raw text, split it into an array on newline chars, filter out empty strings
  5. Create an array of judged sentiments from the Natural Language Toolkkit’s Vader function for each string in array from step 4
  6. For each of the sentiments from step 5, grab the compound (overall) sentiment rating (which is based on values attributed to keywords and etc., wort a search on your favorite engine) and check if it’s above or below a threshold value, then make them lowercase and replace ‘bitcoin’ with ‘our coin’ and ‘btc’ with ‘our ticker’ and ensure the string doesn’t start with a shady substring then append the results to our positives && negatives arrays
  7. Loop 10 times
  8. For a range of maximum 6 strings, for first positive strings then negative strings take a random choice (so long as it’s not already taken) and add it to a series of final sets of superpowerful strings
  9. Print a bunch of useful information to terminal in the process of steps 7–8
  10. Finally add a row to Positives and Negatives gsheet for each of the 10 superstrings

In an ideal world, people would use a variation of this script to load and replace keyword strings from many crypto-based subreddits, then push the final superstrings through a (good) word spinner, then post the resulting strings to create FOMO or FUD for a given perp.

STO Marketing Strategy

Security Token Offerings are the key to the future (and now), offering up real value in exchange for raising funds without the need for an IPO. The landscape is different, global and community-focused, crowd-sourced, open-source themes abound and the ‘true spirit of crypto’ will be mentioned more frequently than one might think.

What marketing aspects are key for an STO? How does one perform better than those that fail to raise funds?

Winning Project

The key to successfully raising funds from the global arena of potential contributors is to have a platform, project or ‘piece of the pie’ that jives with people’s needs, wants, and their ultimate goals.

Those STOs that can create a working demo or a Proof of Concept somewhere between pre-STO early adopters, strategic contributors and the STO regular crowdsale are in a prime position to both impress and satisfy the unquenchable desire for milestones that your potential backers want to see. Sharpe Capital did an awesome job of this during their sales stages, proving a working version before the public crowdsale.

Winning Team ( +Advisors)

While analyzing your offering, potential social influencers as well as the savvy contributor will ‘Do Your Own Research,’ and this includes checking out the team and seeing what previous successes they’ve had together. They’ll look at prior collaboration as a winning factor, and they’ll assess your decisions for advisors much the same. Do they add value? Do they bring expertise or a following and reach to your organization and project? Ian Balina advised Pareto.Network for a hefty tokenshare, for instance, and exposed their project to his massive crypto following!

Marketing Collateral: White Paper, Website, ____ Platform

Presentation is key. A well-thought, well-translated, well-presented website is the first trick to winning friends and influencing people — after that, most potential supporters will thoroughly research and review your white paper to see if you have a handle of the competitive landscape, the potential challenges, and the use of proceeds. There are studies and reputable reports abound about how properly spelled, beautifully developed sites and marketing collateral improve chances of success. A top STO and ICO marketing agency will help you with any and all marketing collateral needs you have throughout your crowdsale.

Social Media Engagement

The majority of people (and STO review sites) will review your social media to see if you’re well-followed, and have engagement from those followers. It’s not expensive to get 10k ‘real Twitter followers’ but the real measure of success is whether or not the growth was organic, and the people who follow you are engaged with your content and message — spreading the word to their followers, organically.

If someone replies to your paid or organic (and regular, frequent!) social media content, it’s important to give them a thoughtful reply that not only answers their questions and concerns but also addresses the untold number of ‘lurkers’ that are behind the scenes or will review the interaction later. Failing to do so can be catastrophic, ‘Wait, additional 113 start-ups just stopped updating their current situation on the social media…’

Engage Early Contributors & Supporters — Bounties!

Bounty campaigns are one of the oldest tricks in the book: provide a tokenshare for people to do their own promotion on social / blogging platforms, generate traffic, generate referrals and signups, and potentially find additional people to contribute. This is key to the successful STO marketing strategy as it encourages the everyman to find additional success with your project, earn by referring their friends or followers, and promote your content and platform for less investment and more ROI for you and your team.

Be careful of compliance! Some countries don’t smile on giving a financial reward for engaging potential contributors and having them advertise with their own funds or to their own non-B2B followers.

Reputable sites will recommend you find prolific and engaged bounty managers on btctalk and elsewhere, read to the end for our recommendation on this thought!

Telegram / Discord Community Management

Since Slack failed the ICO world and countless people fell victim to the same ol’ Slack scam of a personal message from a malicious user creating an official-looking email with different instructions on how to lose all your money, Telegram and Discord have stepped up their game to provide support for the crowdfunding community. You’ll find there are still scammers, but a few reports on their account and you won’t see them again — and Telegram, for instance, makes it incredibly difficult to create more than one or two accounts on a given machine in a certain amount of time, even with tricks like VPNs or proxies.

A good marketing or engagement firm will provide you WoW, MoM organic growth reports on your community channels, and people will flock to your Telegram or Discord to both FOMO and FUD your project — so having engaged, 24/7 resources to handle all these sorts of people as well as your genuine supporters and contributors is essential. The costs don’t necessarily have to be as high as hiring your own internal 24/7 support & engagement team, mind you! ICO telegram management (especially the kind you can get at a bargain as part of a package deal) is an incredibly important aspect of your strategy.

Public Relations

Strategic contributors, Crypto news organizations, and regular ol’ press and media all share one characteristic: they need to be hand-held, and catered to, in order to yield the best results. Forbes.com reports PR as an essential part of a successful STO/ICO. With a good PR representative, department, outsourced organization, or organizational unit, you’ll be armed with the resources to engage these sorts of SMB or large organizations on a level that yields better results than trying to juggle it along with your 18 000 other executive duties. Delegate and automate where you’re able to, and you’ll end up working smarter not harder!

Working with Crypto Influencers

It’s important to remember that certain Crypto influencers are worth more than your run-of-the-mill influencer, so it’s important to ‘Do Your Own Research’ when deciding who to financially reward for their influence. Some people exist by arbitraging fake engagement and fake followers in exchange for Eth to market a project — make sure to look way, way back in their social history to see if you notice a definitive ‘turning point’ where engagement or followers were bought.

There are some names you can trust off-the-bat (as will your potential contributors) but they are also far more costly. Sometimes, you’ll find that your project agrees with them on some personal or professional level, and they might be willing to FOMO or even advise your project.

Again, I’ll mention Ian Balina, who charges through the roof for his crypto knowledge — his name is as well-known in crypto as PewDiePie is in gaming. Ian is just one example, Ivan on Tech and countless others have instantly-trustable brands.

Regulatory Compliance

It’s very, very important that you comply with local and international laws and policies. If, for some reason, there’s any doubt on this front, it could be fatally damaging. Fear of not complying has crushed projects in the past.

These folks raised 5000 Eth in pre-ICO before having to shut down and refund everyone, as far as I can tell there hasn’t been a like crowdfund for a like idea. It is conceivable that a non-US entity that doesn’t allow participation from US, SG, etc., would be able to successfully raise a ton of money with the idea that the tokens could be used on a platform to profit share from a shared Masternode service (with benefits for token holders or a requirement to pay for shares in tokens — thus making them utility). Creative minds and/or corporate structures win here!

Lastly, a Plug!

We, at Crowdcreate, are experienced and familiar with ICO and STO strategy and marketing, including end-to-end bounty campaign management. We’ve gained the insights and have the working experience — along with metrics and data to support our strengths. Our accomplishments include expanding a client’s Telegram channels 1,000% in just 3 months, and we’ve supported dozens of organizations raise tens of millions of dollars.