+- Wrkz Forums (https://www.wrkz.work)
+-- Forum: Others (https://www.wrkz.work/forum-5.html)
+--- Forum: Off topic (https://www.wrkz.work/forum-8.html)
+--- Thread: What Are the Major Types of Strategies Being Used in Crypto Market-Making Bots? (/thread-3482.html)
What Are the Major Types of Strategies Being Used in Crypto Market-Making Bots? - smithtaylor - 10-01-2024
Spread Strategy:
Bots place simultaneous buy and sell orders at slightly different prices, profiting from the spread between the bid and ask prices. This helps maintain liquidity in the market.
Rebalancing Strategy:
Bots constantly rebalance asset holdings by buying and selling based on market conditions, ensuring that the portfolio remains balanced while capturing price differences.
Ping-Pong Strategy:
The bot sets a buy order and, once it gets filled, immediately places a sell order at a higher price. It keeps “pinging” between these two actions to generate small, continuous profits.
Time-Weighted Average Price (TWAP):
This strategy divides large orders into smaller ones, executing them over time to avoid sudden price impacts and reducing the risk of slippage.
Grid Trading:
The bot sets predefined price levels (grid) and places buy orders at lower levels and sell orders at higher levels, capturing profits as the market moves within the grid.
Get a chance to free demo: Crypto market making bot development company