Rise of the Machines
Trading robots or bots came to cryptocurrencies world from the traditional stock trading. Invented in early 1990s, they opened new era in the sphere — the epoch of algorithmic trading. In 2006, almost 40 % of orders at the London Stock Exchange were opened by the automatic means. In 2009 this figure for the U.S. and the European Union exchanges was some 70 %. Shortly after the first global algorithmic trading fraud in 2010, the infamous Flash Crash resulted in S&P 500 9 % failure and $40M made by small trader Navinder Singh Sarao, the NASDAQ CEO Robert Griefeld concluded: “It is over. The trading that existed down the centuries has died. We have an electronic market today. It is the present. It is the future.”
Crypto trading, digital-based by nature, welcomed all sorts of trading bots from the very beginning. First well-known Bitcoin bot developer, Joseph Lee earned $150K in 2012–2013 on the simple arbitrage: his bot was browsing some exchanges and seeking the lowest price to buy and, then, the highest price to sell. At the same time, Mr. Lee lamented his programs for the low outcomes on the Bitcointalk: ‘few percent only’ was very poor result for him.
Now, the bots’ performance is far better. The most popular centralized exchanges e.g. Poloniex, Kraken etc. licensed their approved programs for algorithmic trading. There is no more need for browsing dozens of exchanges: experienced trader is able to set numerous parameters for automatically placed orders as well as for other traders’ orders analysis.
Trade With Us in a Modern and Safe Way: Swap.Online Trading Bot’s Main Features
We started our bot development in Summer, 2018. Head of Swap.Online R&D Development, Alex B (https://github.com/caffeinum/) with a dose of humility commented that important dev-update. “ Lately we published a REST API for swap.online exchange (https://github.com/caffeinum/swap.core/tree/master/server), and said that the trading logic for the API can be implemented in any of your favorite programming languages (JS, Python, Go, R etc).
Bot is something like an interface for interface. It has a simple set of commands doing everything REST API does, but also has its own features.
Bot basic functionality is duplicating REST API functions in a convenient console-line interface:
- creating orders using one-line command
- request any order
- accept incoming request
- start swap and watch its’ state
- refund failed swap
However, the bot is more flexible. One can use the bot to fill the orderbook automatically and the bot includes fees into the prices. This is very convenient for marker makers. Later I will add the arbitrage, so that price synchronises with other exchanges, generating spread profits. Other exchanges are accessible via ccxt library https://github.com/ccxt/ccxt.
Also, bot can output a graphical representation of the orderbook state.
Using the bot, you can finish the swap in the couple of keyboard strokes. Print orderbook — request order — start swap — wait for swap finishing — done!
Bot is open source, as the whole code of our platform. Everyone can contribute and add new functions.
So, our team made one more great step to the full product release scheduled for the August, 2018. The trading on the unique crypto OTC marketplace will be profitable, easy and interesting.