Anyone here messed around with sentiment analysis tools/bots for crypto?
I've seen a few. They largely seem to be a trailing indicator, not a predictive one.
Show HN: Token Spread – Bitcoin/crypto spread tracking for arbitrage
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Re: Show HN: Token Spread – Bitcoin/crypto spread tracking for arbitrage
#22This is a nicely designed site and some good data feeds. There is a big difference between spread, and arbitrage. Critically, any attempt to track arbitage needs to watch the orderbook rather than the last-trade-price. Ironically, the bid/ask spread on the same exchange isnt part of arbitrage. The difference between the total available bids on exchange A and the total available asks on exchange B (or vice-versa), is…
Agreed. I had run a small BTC arb program for a bit a number of years back. The exchanges were shoddy, there was a persistent bias in the arbitrage such that you ended up accumulating huge positions of BTC on one side, and lots of short cash on the other. Couple that with the difficulties of withdrawing cash from the system, fees, etc., it was not worth the risk. But this is not new. What's pretty cool about this --…
Yeah, I remember big spread between MtGox and the other exchanges. There was a reason for that.
Re: Show HN: Token Spread – Bitcoin/crypto spread tracking for arbitrage
#23Crypto arbitrage always seems so tempting, but there's so many gotchas. This site seems to do a good job of weeding out some of the gotchas by focusing on coins with high market caps. Usually the "opportunities" in arbitrage that sites like this highlight ignore the fact that the targetted coin on one of the exchanges has abysmally low volume, so you'll be unlikely to be able to buy and sell it in time to take advant…
> Usually the "opportunities" in arbitrage that sites like this highlight ignore the fact that the targetted coin on one of the exchanges has abysmally low volume, so you'll be unlikely to be able to buy and sell it in time to take advantage.
I don't understand. If there's an order in the order book on the sell-side of one exchange that matches one on the buy-side of another exchange, what does volume on either exchange have to do with the ability to take advantage of this situation?
Re: Show HN: Token Spread – Bitcoin/crypto spread tracking for arbitrage
#24Crypto arbitrage always seems so tempting, but there's so many gotchas. This site seems to do a good job of weeding out some of the gotchas by focusing on coins with high market caps. Usually the "opportunities" in arbitrage that sites like this highlight ignore the fact that the targetted coin on one of the exchanges has abysmally low volume, so you'll be unlikely to be able to buy and sell it in time to take advant…
> Usually the "opportunities" in arbitrage that sites like this highlight ignore the fact that the targetted coin on one of the exchanges has abysmally low volume, so you'll be unlikely to be able to buy and sell it in time to take advantage. I don't understand. If there's an order in the order book on the sell-side of one exchange that matches one on the buy-side of another exchange, what does volume on either excha…
That order can disappear in between. The probability of such event is not zero.
Re: Show HN: Token Spread – Bitcoin/crypto spread tracking for arbitrage
#25Crypto arbitrage always seems so tempting, but there's so many gotchas. This site seems to do a good job of weeding out some of the gotchas by focusing on coins with high market caps. Usually the "opportunities" in arbitrage that sites like this highlight ignore the fact that the targetted coin on one of the exchanges has abysmally low volume, so you'll be unlikely to be able to buy and sell it in time to take advant…
These guys http://tensorbox.com/ think they have the answer. Who knows.
https://medium.com/tensorbox/the-trading-system-that-maximiz...
https://medium.com/tensorbox/stochastic-optimal-control-and-...
Re: Show HN: Token Spread – Bitcoin/crypto spread tracking for arbitrage
#26Earlier quoted context omitted.
Agreed. I had run a small BTC arb program for a bit a number of years back. The exchanges were shoddy, there was a persistent bias in the arbitrage such that you ended up accumulating huge positions of BTC on one side, and lots of short cash on the other. Couple that with the difficulties of withdrawing cash from the system, fees, etc., it was not worth the risk. But this is not new. What's pretty cool about this --…
Yeah, I remember big spread between MtGox and the other exchanges. There was a reason for that.
Sorry, what was the reason?
Re: Show HN: Token Spread – Bitcoin/crypto spread tracking for arbitrage
#27Re: Show HN: Token Spread – Bitcoin/crypto spread tracking for arbitrage
#28Earlier quoted context omitted.
> Usually the "opportunities" in arbitrage that sites like this highlight ignore the fact that the targetted coin on one of the exchanges has abysmally low volume, so you'll be unlikely to be able to buy and sell it in time to take advantage. I don't understand. If there's an order in the order book on the sell-side of one exchange that matches one on the buy-side of another exchange, what does volume on either excha…
That order can disappear in between. The probability of such event is not zero.
How does exchange volume affect the risk of this occurring?
Re: Show HN: Token Spread – Bitcoin/crypto spread tracking for arbitrage
#29Earlier quoted context omitted.
That order can disappear in between. The probability of such event is not zero.
How does exchange volume affect the risk of this occurring?
The more liquidity there is, the higher the chance that someone will jump in the place of another order that has been withdrawn. Low liquidity and volume means that such chance is lower.
Re: Show HN: Token Spread – Bitcoin/crypto spread tracking for arbitrage
#30good job! what's the tech stack behind this?
mostly Node and some other bits. thanks for the support!