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Vacek_aka_Luschka

What am I seeing? Bots ? XRP/CAD

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I've been trading XRP/CAD on Kraken, and have been largely successful getting what I've been after using limit orders and waiting for them to be filled.

I am however noticing some patterns of buying/selling that I'm certain are not human generated(?). The trades below in the image, would be in the range of $10cdn each ... and often I see the same pattern for 9,8,7,6,5,4,3,2,1 XRP which is $2>.22c .... I've also seen myself putting an order in for say .221000 and immediately there is a smaller order generated for .221001. If I then delete the original and make it .2219001 , an order then gets created that may be like .2219002

Any advice what to do when I see this going on? It seems to be an ever sliding scale to see if people will bite at a certain price. How do I combat this? (or can I)

Screen Shot 2017-07-27 at 10.36.07 AM.png

Edited by Luschka
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Maybe make a complaint? I don't know if the platform has some form of acceptable use policy, but that seems to be something that could scare away business if not handled properly.

Edited by g00p

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4 hours ago, g00p said:

Maybe make a complaint? I don't know if the platform has some form of acceptable use policy, but that seems to be something that could scare away business if not handled properly.

I opened a ticket with Kraken, and don't like the answer I got back (I bolded the concerning comment below). Is this the norm with an exchange ?

"

Thank you for contacting us regarding this.

As an exchange, our job is to help with price finding. The faster price finding can take place, the better our market represents the current situation. You can use limit orders to only pay the price you specify regardless of the actions bots take.

Trading with bots is allowed, but we do have preventative measures in place to guard against abuse. We also have separate measures in place to prevent order book manipulation caused by the rapid placing and canceling of orders.

If you have any further concerns regarding this, feel free to let us know.

"

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I understand their need to allow bots, its a huge transaction fee bonus for them, but being able to spam every position and blocking people out is BS.

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7 hours ago, Luschka said:

How do I combat this? (or can I)

I think you combat this by ignoring it. Seems the bot is trying to encourage you to increase the price of your buy order by placing your order second in the order book. Just set your limit and forget it. Or if an exchange allows hidden orders you could do that.

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24 minutes ago, SNAP_Longterm said:

I think you combat this by ignoring it. Seems the bot is trying to encourage you to increase the price of your buy order by placing your order second in the order book. Just set your limit and forget it. Or if an exchange allows hidden orders you could do that.

Dammit, I didn't know of such a thing "Or if an exchange allows hidden orders you could do that"

Kraken has what they call a Dark Pool, although the trading pairs are somewhat limited.

Guess I know what I'm trying tonight :)

 

EDIT: Maybe not, lol: "The minimum dark order size is 50 bitcoins and only limit orders are supported"

Edited by Luschka

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11 minutes ago, Luschka said:

EDIT: Maybe not, lol: "The minimum dark order size is 50 bitcoins and only limit orders are supported"

hidden orders are typically used to minimize the market influence of a large order: https://www.quora.com/In-stock-trading-investing-how-do-hidden-orders-work/answer/Joseph-Dunn-1

Edited by SNAP_Longterm

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Automated trading algorithms have various strategies, and what you are seeing may be different bots from different strategies. It also could be a order execution manager that tries to split a larger order into smaller ones, so as not to affect the price too much.

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4 hours ago, Luschka said:

Dammit, I didn't know of such a thing "Or if an exchange allows hidden orders you could do that"

Kraken has what they call a Dark Pool, although the trading pairs are somewhat limited.

Guess I know what I'm trying tonight :)

 

EDIT: Maybe not, lol: "The minimum dark order size is 50 bitcoins and only limit orders are supported"

Yup , hidden orders are only for big buyers and sellers . And i am sure there are a couple sitting behind .

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