How bots are manipulating cryptocurrency prices

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I'm Sebastian Dobrincuand I'm a software engineer currently working as a freelancer. I'm also an avid product maker who loves building side businesses and crazy projects. Malfunctioning bitcoin trader bot causes extremely high initially built Stock Trading Bot as a personal research project. I was testing the waters to see if modern machine learning approaches can be used to predict and automate selling and buying of assets in today's stock market, at a much more efficient rate.

Currently I am the sole user. Malfunctioning bitcoin trader bot causes extremely high planning to continue working on it with the goal of scaling the bot as much as possible. The idea popped up pretty randomly. I was getting ready to board a flight to SFO and decided to download some podcasts. I felt like trying something new, so I picked a few of the most popular ones from the Finance category. The host brought up the topic of liquidity, which boils down to 3 measures: Essentially when liquidity is high, investors can successfully trade a larger order close to the current price and within a short time span.

Once they began debating whether or not high frequency trading was improving the market by providing liquidity, I switched malfunctioning bitcoin trader bot causes extremely high the Notes app on my phone and started furiously typing some of the main ideas. Prior to this project, my experience with finance in general was pretty malfunctioning bitcoin trader bot causes extremely high. I had a solid understanding of the fundamentals of trading but not much beyond that. The first one is probably the best piece on finance I've ever read.

It literally answers all those questions any curious person who has ever made a trade might ask. On the other hand, John Hull's book gave me a fantastic introduction on mathematical finance from an applied point of view. I highly recommend both if you are just getting started with trading. I believe we've reached a peak in the field of AI.

We now have both powerful machines and enough data to process. With this in mind, my inner engineer got excited at the possibilities of tackling the market with today's advancement in technology. Besides that, I have an addiction for creating fascinating projects and this was no exception. The huge advantage is that you are not necessarily starting with a handicap against the big trading firms. That's because when it comes to stock trading, malfunctioning bitcoin trader bot causes extremely high microseconds could make trades go wrong — such as your bot falling victim of a faster bot's bait offer.

And guess who owns the faster servers and bots? With cryptocurrencies however, these small time increments are not nearly as important. Although I believe it's the golden age to be in the Bitcoin market because it's imperfectI quickly abandoned the idea maybe too quickly? Without boring you with technical details any longer, the solid trading APIs were mostly based on REST, which is not fast enough for what I was aiming for.

For proprietary reasons I will abstain from publicly discussing a lot of details about the technical implementation. Although I get many requests to open-source the project, I believe that disclosing deep details of the models or prediction approach would hurt the advantages that this solutions has over the other existing bots. However, for anyone willing to learn more about that, Malfunctioning bitcoin trader bot causes extremely high would be more than happy to discuss in private, to some extent.

Malfunctioning bitcoin trader bot causes extremely high story short, I ultimately ended up going for the stock market, but not into high frequency trading malfunctioning bitcoin trader bot causes extremely high its real meaning. My bot holds a single position from seconds to minutes sometimes even hourswhich makes it more of an automated trader than a high frequency trader. The reason behind this is that being an individual trader makes it extremely hard to compete with the big guys, as you're lacking perks such as very powerful hardware, advance trained software, and great locations for your servers.

The closer to the stock exchange you are, the faster you receive the information. Large investment servers are literally paying millions to get their servers a few miles closer to the exchanges. Their limitation is 3 requests per second, and this was more than enough for my new strategy. Getting solid historical financial data isn't cheap, and with so many people hitting the providers to scrape and download data, I don't blame them for limiting the offered information.

Intrinio is a good provider for real-time stock quotes at malfunctioning bitcoin trader bot causes extremely high inexpensive prices. However, getting access to more in-depth data would always yield better results.

I built the first prototype in a little under a month. I was working late hours, trying to find time around my daily job as a freelancer. At this point the bot wasn't very smart. It took me about 2 more weeks to feed it malfunctioning bitcoin trader bot causes extremely high data until my error rate was satisfactory, and another 2 weeks to test it before putting it in production.

Summed up, the technical implementation of the current version took about 4 months, with some more improvements along the way. Since I publicly announced itI've been receiving dozens of offers from trading companies. At the moment the system malfunctioning bitcoin trader bot causes extremely high me an edge over other traders.

If I sold it, I'd be giving this advantage to other traders and, subsequently, losing my lead. Although Malfunctioning bitcoin trader bot causes extremely high do not exclude a future buyout, Malfunctioning bitcoin trader bot causes extremely high am presently focusing on improving the product and trying to scale it. One of the things that I plan on doing soon is increasing the capital and therefore putting the bot through more trading volume.

There are tons of improvements I have in mind, especially on adjusting the position-holding time span, as well as solutions to make it more lig