Strategy analysis of bitcoin high-frequency trading
Many Bitcoin trading platforms implement a zero transaction fee and provide an API interface for trading, providing favourable conditions for high-frequency trading in Bitcoin.
How to do bitcoin high frequency trading? A simple trading model is presented below.
1, according to their own financial strength, determine the minimum unit of each transaction, the following with a bitcoin as a trading unit, so at least 10 bitcoin transactions.
2, every 5 minutes decided to trade once, the decision is: do not trade, buy one, sell one.
3, 5 minutes of trading orders, enough to buy and sell a bitcoin minimum selling price and the highest bid price.
4. The first trade assumes that there are already five bitcoins, and that the current market price is sufficient to buy more than five funds.
5. After the first 5 minutes, there must be a market execution of a transaction, pre-set to buy or sell a Bitcoin, while the opposite of a pending order: Sell or buy a bitcoin, the price is 5 per minute of the highest bid or the lowest selling rate. At the same time record the price difference between the two transactions, the price will be at least a difference of 10 yuan.
6, if the market fluctuation in a narrow range, then the trade alternately, the middle will generate profits.
7, if there is unilateral market, how to carry out the sale? For example, 2000 yuan to sell a bitcoin, while in 1990 to hang a buy order, then the price continues to rise, a short period of time will not fall back to 1990 yuan, how to do?
8, when rise to the original price difference of twice times 20 yuan, continue to sell a Bitcoin, that is, sell a bitcoin in 2020 yuan, in the original spread one times the next pay: 2005 buy one. At this time there are two pay at 2005, 1990.
9, if the market continues to rise, resulting in the two pay no deal, and the price rose to the previous spread of 20 yuan twice times 40 yuan, that is, 2060 yuan and then sell a bitcoin, at the same time in 2025 yuan again hang the bill.
10, only the price down, each deal a pay, you can buy at the top of the bid 10 yuan to sell, each back and forth to buy and sell a profit of 10 yuan, each transaction net earn 0.5%.
11, one-sided decline is also, the more the fall, the gap is bigger, you can use a list to find the price of buying and selling.
Ascending segment:
2140 Sell, 2110 buy
2090 Sell, 2065 buy
2050 sell, 2030 buy
2020 Sell, 2005 buy
2000 Sell, 1990 buy ·
Descending segment:
1990 Buy, 2000 sell
1970 Buy, 1985 sell
1940 Buy, 1960 sell
1900 Buy, 1925 sell
1850 Buy, 1880 sell
The front is the main order, followed by a single. The main order can be hung out first, must be in the deal after the second order. Only the deputy single deal, the corresponding main list and then hang out.
If combined with Bollinger bands calculation, the above strategy is executed when the upper and lower rails are enlarged, and after the upper and lower rails are closed, the new median price line is re-determined, as in the example of $2000.
Continuous cycle operation to achieve maximum profit.
Strategy analysis of bitcoin high-frequency trading
