Something is changing
Over this last week there seem to have been a change in the broad crypto ecosystem. The majority of everyone has been saying this last week that the market was dead, Bitcoin isn't working.. no one is using this stuff.. but as I keep looking at the prices most everything seemed to be slowly gaining 20 to 30 % in the last 2 weeks. All this while the FUDsters where spreading fear. The volume of the market has increased. The market cap of the total market went up. But the only thing I could see happening was forced market suppression.
I feel that institutions are here. The market is manipulated by very well programmed trading algos, all of witch are designed to still your crypto. Over the weekend, I entered a trade that went south very fast. I hadn't even had the opportunity to enter my stop loss. I eventually closed the position but with losses. The losses are fine I can keep trading and get my coin back. But in the process of exiting and reentering trades I was able to mess with the bots that are currently playing the market. I would feed in random orders to market then stop. the bot would stop waiting for my orders to stop flowing and then it would go about its trades gain. Most the order sizes where stacked and very similar. If I would enter a order they would reduce their order at a rate much faster then a human could. and thus changing the even flow of wash trades the bot was making.
As humans like to round # s such as 1 2 3 4 5.. 10 100 1000... 2000 3000 ect.. we don't look for the small gains that are available. Lets take look at a coin that trades at 0.00000500 the rate of change that is need to make profit is 2 sats. That is normal on almost all exchanges. 2 sats would give you a change of 0.4% most exchanges are 0.25%. Thus the 1 sat just wont do. While most humans will be looking for a 5 to 6 Sat change to cover fees. The algo can enter 1000 trades all trades can be the min order size and only look for a 2 sat change or a 3 sat change. if the sold % of the orders off at 1 sat thus covering the fees for those orders but sold another 1/2 at 2 sats and 1/2 at 3 sats the gain is still worth it. they can loose or brake even as long as the sum at the end is greater then that of the initial buy.
1000 small trades each has its own base. You each order is looking for a 2 sat gain but can sell up to 100% at brake even 1 Sat. The Algo will not sell less then a buy and will manipulate volume and momentum to maintain price levels to prevent from taking a loss. We are now trading in a world. where more and more companies with access to a high level algos programmed with 100s of millions of dollars, with some of the brightest minds. Most retail traders don't have a chance in the market. That's why we HODL.
Sorry I know this may seem very off base and weird to read but I needed a space to vent and talk about what has been on my mind. I know most of this wasn't even a complete thought.
But I would love to hear what you have to say, Comment down below and lets start a conversation about trading bots/Quants/Algos/ ect.
In the mean time have a great day!
If you want to try out a trade bot for yourself, Check out HAASOnline
