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Show HN: Pytrader – trade cryoptocurrencies automatically with machine learning

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Re: Show HN: Pytrader – trade cryoptocurrencies automatically with machine learning

#21

Post by pmorici »

dikaiosune wrote: post #2

"My test portfolio was initialized with a 1 BTC deposit, and after 2 months and 23,413 trades, exited with 0.955 BTC. The system paid 2.486 BTC in fees to poloniex." I wonder whether a different trading strategy would decrease the fee overhead. Or perhaps the cryptocurrency exchanges are not setup for short-run trading? I know very little about the exchanges, but this does seem curious to me.

Fees on crypto-currency trading platforms are typically a % of the value of the trade and the % you pay is determined by your trading volume over the prior month. The fact that the thing was tested with such a small amount of BTC means they were probably paying the highest fee tier.

Re: Show HN: Pytrader – trade cryoptocurrencies automatically with machine learning

#22

Post by Caprinicus »

flannelcatering wrote: post #5
maxander wrote: post #3

There's going to be a problem with any Bitcoin-style currency once sophisticated algorithmic trading becomes widespread enough that compute time is always more profitably spent day-trading than mining.

OP here. I'd presume that someone who is better versed in wall-street style algorithmic trading could speculate better than i what a mature cryptocurrency trading market would look like. I'm curious to see what a mature market in this space looks like. It'll surely be different on a currency-by-currency basis, because volume, market depth, and fundamentals matter greatly and are unique on a per-currency basis. Time w…

If it was profitable to mine with AWS, why wouldn't amazon be doing it themselves?

Re: Show HN: Pytrader – trade cryoptocurrencies automatically with machine learning

#23

Post by flannelcatering »

pmorici wrote: post #21
dikaiosune wrote: post #2

"My test portfolio was initialized with a 1 BTC deposit, and after 2 months and 23,413 trades, exited with 0.955 BTC. The system paid 2.486 BTC in fees to poloniex." I wonder whether a different trading strategy would decrease the fee overhead. Or perhaps the cryptocurrency exchanges are not setup for short-run trading? I know very little about the exchanges, but this does seem curious to me.

Fees on crypto-currency trading platforms are typically a % of the value of the trade and the % you pay is determined by your trading volume over the prior month. The fact that the thing was tested with such a small amount of BTC means they were probably paying the highest fee tier.

You are close. This is poloniex exchange's new fee model. https://poloniex.com/fees/

Re: Show HN: Pytrader – trade cryoptocurrencies automatically with machine learning

#24

Post by flannelcatering »

Caprinicus wrote: post #22
flannelcatering wrote: post #5

Earlier quoted context omitted.

OP here. I'd presume that someone who is better versed in wall-street style algorithmic trading could speculate better than i what a mature cryptocurrency trading market would look like. I'm curious to see what a mature market in this space looks like. It'll surely be different on a currency-by-currency basis, because volume, market depth, and fundamentals matter greatly and are unique on a per-currency basis. Time w…

If it was profitable to mine with AWS, why wouldn't amazon be doing it themselves?

If I had to speculate, I'd hypothesize that there are lower hanging fruit with respect to profit opportunities at Amazon than cryptocurrency mining.

Re: Show HN: Pytrader – trade cryoptocurrencies automatically with machine learning

#25

Post by Caprinicus »

flannelcatering wrote: post #24
Caprinicus wrote: post #22

Earlier quoted context omitted.

If it was profitable to mine with AWS, why wouldn't amazon be doing it themselves?

If I had to speculate, I'd hypothesize that there are lower hanging fruit with respect to profit opportunities at Amazon than cryptocurrency mining.

Think about it this way though. If it was profitable to pay amazon to do it even with them taking their cut, it would be much more profitable for them to do it themselves. If it was more profitable than renting out the performance to other people, it would be the lowest hanging fruit by default.

This isn't hypothetical, the CPU mined coins aren't close to profitable with web services. And the people making profitable ASICs are using them rather than selling them because it's intrinsically more profitable.

Re: Show HN: Pytrader – trade cryoptocurrencies automatically with machine learning

#26

Post by pmorici »

flannelcatering wrote: post #23
pmorici wrote: post #21

Earlier quoted context omitted.

Fees on crypto-currency trading platforms are typically a % of the value of the trade and the % you pay is determined by your trading volume over the prior month. The fact that the thing was tested with such a small amount of BTC means they were probably paying the highest fee tier.

You are close. This is poloniex exchange's new fee model. https://poloniex.com/fees/

So I see it says that the bot made 23k trades. What kind of volume did it reach with only 1BTC? When it made a trade did it always go all in?

Re: Show HN: Pytrader – trade cryoptocurrencies automatically with machine learning

#27

Post by flannelcatering »

pmorici wrote: post #26
flannelcatering wrote: post #23

Earlier quoted context omitted.

You are close. This is poloniex exchange's new fee model. https://poloniex.com/fees/

So I see it says that the bot made 23k trades. What kind of volume did it reach with only 1BTC? When it made a trade did it always go all in?

nope, only small trades to start. average trade was 0.05 BTC, total volume was 1200 BTC

Re: Show HN: Pytrader – trade cryoptocurrencies automatically with machine learning

#28

Post by wslh »

flannelcatering wrote: post #14
lordnacho wrote: post #12

This is quite interesting. Why trade BTC though, when you can just open an Interactive Brokers account and have access to a bunch of cheap assets?

Less competition for profits vs. other algorithmic traders.

But except for BTC, and probably Ethereum, other cryptocurrencies have insignificant liquidity and volume.

Re: Show HN: Pytrader – trade cryoptocurrencies automatically with machine learning

#29

Post by languagehacker »

Just thinking out loud here, but I'm wondering if using integer linear programming (e.g. branch and bound) to introduce constraints to the decision-making part of the engine might reduce the amount of fees the author incurred.
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