Good read, awesome info! I co-founded a CryptoCurrency index fund which obviously doesn't do algorithmic trading but we have looked into it.
I think most these algorithms fail when you introduce fees though. The trade volume will kill you after a while and I'm afraid the profit simply wouldn't be high enough.
I still believe that in order to make money with Crypto, you need to buy and hold, actively wait for the prices to drop and then buy in (Never sell, just always buy low!) or get into the right ICO (which requires a lot of research).
I built an algorithmic trading bot on the GDAX API awhile back and came to the same conclusion. It's not about making killer profit in the short term, it's about making a faster, smarter, more patient human. Once you accept that and build for that, it becomes a lot easier to turn a profit.
Yeah, I think a script that watches for big drops might be worth it. Just have it automatically buy when the price drops a certain amount and bounces back. You wouldn't always be buying at the best possible moment but I think you could make a killing in the long run.
I do believe Crypto is a buy & hold play anyway and I'm not planning on selling in the next 5 years so these extra profits don't make a dent in the much larger profit you get from holding for a while.
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Good read, awesome info! I co-founded a CryptoCurrency index fund which obviously doesn't do algorithmic trading but we have looked into it.
I think most these algorithms fail when you introduce fees though. The trade volume will kill you after a while and I'm afraid the profit simply wouldn't be high enough.
I still believe that in order to make money with Crypto, you need to buy and hold, actively wait for the prices to drop and then buy in (Never sell, just always buy low!) or get into the right ICO (which requires a lot of research).
I built an algorithmic trading bot on the GDAX API awhile back and came to the same conclusion. It's not about making killer profit in the short term, it's about making a faster, smarter, more patient human. Once you accept that and build for that, it becomes a lot easier to turn a profit.
Yeah, I think a script that watches for big drops might be worth it. Just have it automatically buy when the price drops a certain amount and bounces back. You wouldn't always be buying at the best possible moment but I think you could make a killing in the long run.
I do believe Crypto is a buy & hold play anyway and I'm not planning on selling in the next 5 years so these extra profits don't make a dent in the much larger profit you get from holding for a while.