What Are the Bots Accomplishing?

[WitchTrading]

The last 12 hours with 5 minute bars has shown both interesting price movement, and volume spikes for the Bitstamp USD market. 

https://charts.ripple.com/#/markets/XRP/USD:rvYAfWj5gh67oV6fW32ZzP3Aw4Eubs59B?interval=5m&range=12h&type=candlestick

A small box on these candle sticks would suggest that within five minutes, someone is moving the price around 4%, then something is damping the movement. What do you think is causing this, and is someone able to profit from it? It seems to have only started in the last 12 hours.

 

[Duke67]

I saw something like that on Coinbase Xchange (GDAX) in early 2016 on BTC/USD pair. Most probably some guy experimented with their API and his own scripts in a blind hope to develop a bot that will make him rich. After about 36 hours it stopped and I suppose he was left some 70% lighter...

[Duke67]

And also - Welcome at XRPchat!

[WitchTrading]

It's impossible to get any reasonable data to explain this from the Active Accounts page : 

https://charts.ripple.com/#/active_accounts

 

[WitchTrading]

Are there algorithms that take unfair advantage of ill-liquid markets? Surely there must be. 

[fh13]

18 minutes ago, WitchTrading said:

Are there algorithms that take unfair advantage of ill-liquid markets? Surely there must be. 

I guess people running an arbitrage bot are having a good time right now. You can even make profits from arbitrage by trading by hand right now, because markets are super volatile. Also market making bot CAN profit from high volatility and high spreads.
But in my oppinion there's nothing unfair with both of them.
Welcome to XRPChat by the way

Edited September 17, 2016 by fh13

[tulo]

24 minutes ago, fh13 said:

I guess people running an arbitrage bot are having a good time right now. You can even make profits from arbitrage by trading by hand right now, because markets are super volatile. Also market making bot CAN profit from high volatility and high spreads.
But in my oppinion there's nothing unfair with both of them.
Welcome to XRPChat by the way

I don't think they are arbitrage bots, but it's a great idea. I have a few arbitrage bots, but I never did one between Ripple and Poloniex....my next work

Did you see if the transactions are coming by a single address?

[fh13]

1 minute ago, tulo said:

I don't think they are arbitrage bots, but it's a great idea. I have a few arbitrage bots, but I never did one between Ripple and Poloniex....my next work

Did you see if the transactions are coming by a single address?

I wasn't directly referring to the initial post but to this question:

47 minutes ago, WitchTrading said:

Are there algorithms that take unfair advantage of ill-liquid markets? Surely there must be. 

 

I think a Poloniex RCL Arbitrage isn't profitable all the time, due to the high cost of depositing/withdrawing money from the RCL. But right now you could probably make quite some money with it.

[WitchTrading]

How's the Bitstamp to Ripple arbitrage? Any fruit still left there?

[tulo]

Just now, fh13 said:

I think a Poloniex RCL Arbitrage isn't profitable all the time, due to the high cost of depositing/withdrawing money from the RCL. But right now you could probably make quite some money with it.

Why? Deposit money in/out RCL is almost free...from Bitstamp and may other gateway. Also deposits and withdrawal in Poloniex are quite cheap.

[tulo]

2 minutes ago, WitchTrading said:

How's the Bitstamp to Ripple arbitrage? Any fruit still left there?

One of my bots is running there...but volumes are low...

Edited September 17, 2016 by tulo

[fh13]

1 minute ago, tulo said:

One of my bot is running there...but volumes are low...

What do you think is market making or arbitrage more profitable, not right bow but in general.

[tulo]

11 minutes ago, fh13 said:

What do you think is market making or arbitrage more profitable, not right bow but in general.

It depends on MAAANY factors: how much money you have to invest, how much risk you want,...

Arbitrage is a bit more safe, but volumes are really low...to gain enough you'd have to make arbitrage over many many exchange. Arbitrage on Ripple directly it is not safe enough because of missing circular payments, otherwise it would be the best. Market making can be profitable but also risky with high volatility and low volumes. I did more money on MM but I also invested more there.

[fh13]

5 minutes ago, tulo said:

It depends on MAAANY factors: how much money you have to invest, how much risk you want,...

Arbitrage is a bit more safe, but volumes are really low...to gain enough you'd have to make arbitrage over many many exchange. Arbitrage on Ripple directly it is not safe enough because of missing circular payments, otherwise it would be the best. Market making can be profitable but also risky with high volatility and low volumes. I did more money on MM but I also invested more there.

Thanks for that info, and actually thats exactly what I observed. I had to give up my first bot (arbitrage within the RCL) because of missing circular payments.
And the second observation I made is that's kinda hard, run a profitable mm bot without investing a lot of money. (currently trying to run my MM Bot with about 700 USD, thats all I can affort right now   )

[tulo]

37 minutes ago, fh13 said:

Thanks for that info, and actually thats exactly what I observed. I had to give up my first bot (arbitrage within the RCL) because of missing circular payments.
And the second observation I made is that's kinda hard, run a profitable mm bot without investing a lot of money. (currently trying to run my MM Bot with about 700 USD, thats all I can affort right now   )

We'll see with the new incentive for MM...maybe also with 700 USD will be profitable. If the incentive gives back the transit fees it will be profitable also with low money. But I remember someone of Ripple saying it will be an incentive based on static volumes, so independently if the offers are consumed or not. I don't want to discuss how good or bad that would be but I don't like it.