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Algo trading digital assets

johnmathews.eu

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Re: Algo trading digital assets

#21

Post by wc- »

nosuchthing wrote: post #20
wc- wrote: post #14

Earlier quoted context omitted.

This comment is almost like a copy-paste every time some kind of crypto trading article is submitted. I might have missed something in the article / code but this isn't an arb strat? It is just using some moving averages to try to follow a perceived trend in different trading pairs on a single exchange. Counterparty risk definitely still exists, but it is getting better very quickly with the growth of regulated US-ba…

You forgot the most infuential (and unscrupulous) crypto exchange in the cyptocoin ecosystem: Bitfinex. https://medium.com/@bitfinexed/latest

Yes, very familiar with finex and the bitfinexed guy's warnings / rants / whatever you want to call them.

If counterparty risk is a top concern (and it probably should be) then don't trade on unlicensed exchanges... That rule is great to follow and I haven't even gotten into any usdt tether issues...

Re: Algo trading digital assets

#24

Post by AznHisoka »

joshvm wrote: post #18
georgeglue1 wrote: post #6

Can someone summarize the returns and risk-level of his strategy?

Trying to trade purely off technical analysis is a disaster waiting to happen. Have a look at the technical analysis of ETH/USD, for instance, they have absolutely no clue what's going on: https://www.ethnews.com/analysis/10-30-2017-ethereum-forecas... As to the linked article, the idea of SMA crossovers is nothing special: https://www.babypips.com/learn/forex/moving-average-crossove... Take a look at their example.…

My opinion is that technical indicators can work well... when it's clearly a bull market (but then, so can every other strategy). They absolutely suck and can't predict when it's clearly going to crash. Which make technical indicators pretty much useless because you can easily lose all your gains when that happens.

Re: Algo trading digital assets

#25

Post by tlb »

wc- wrote: post #14
tlb wrote: post #9

Although simulations will predict good profits, you will probably lose your money doing this due to counterparty risk. Counterparty risk is the risk that, between the time you click the 'sell' button and the time you actually get the money deposited in your bank account a few days later, the exchange goes insolvent. When a given coin trades at different prices on two exchanges (which is what these arbitrage algorithm…

This comment is almost like a copy-paste every time some kind of crypto trading article is submitted. I might have missed something in the article / code but this isn't an arb strat? It is just using some moving averages to try to follow a perceived trend in different trading pairs on a single exchange. Counterparty risk definitely still exists, but it is getting better very quickly with the growth of regulated US-ba…

You can still run an arbitration strategy even with one exchange, and the risk within that single exchange can be different between different coins. For example, if an exchange's Bitcoin balance is stolen but not their Litecoin, there might be a period during which you can withdraw in Litecoin but not Bitcoin. If the rumor mill works, that would be preceded by a change in the relative prices during which this algorithm would suggest buying Bitcoin.

Re: Algo trading digital assets

#28

Post by sne11ius »

mthwsjc_ wrote: post #26
itodd wrote: post #8

I'm unable to see the charts: Refused to display 'https://plot.ly/~mthwsjc/69.embed' in a frame because it set 'X-Frame-Options' to 'sameorigin'.

how were you trying to view the page? mobile? which browser were you using?

Chrome@Android, Firefox@Android, Chrome@Windows - all fail for me.

Just look at the dev console.

Re: Algo trading digital assets

#29

Post by dharma1 »

wc- wrote: post #21
nosuchthing wrote: post #20

Earlier quoted context omitted.

You forgot the most infuential (and unscrupulous) crypto exchange in the cyptocoin ecosystem: Bitfinex. https://medium.com/@bitfinexed/latest

Yes, very familiar with finex and the bitfinexed guy's warnings / rants / whatever you want to call them. If counterparty risk is a top concern (and it probably should be) then don't trade on unlicensed exchanges... That rule is great to follow and I haven't even gotten into any usdt tether issues...

couldn't you trade on decentralised exchanges where counterparty risk isn't a thing? at least if you're only trading between crypto pairs
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