Comment/idea to the Binance BOT for new coin scalping
These are my thinking supported with some ideas how to code better bot. It is Meant as a direct response to articles related to Binance new coin listening Bot.
At the upper link detailed explanation how to code Bot is published. And if articles related to these are correct. Problem is with BOT speed. Let’s break these apart and see how it works.
1st Binance list new coin
2nd you have list with old pairs
3rd script call’s API and if new coin is listed it will open order.
All seems legit, just from my experiences when you are making the API call’s you are forced to use some delays to avoid Binance ban. Let’s say here you lose at least 1s as is not so much you would say. Knowing how HFT works I can say that these 1s is like ages for algorithms that you are fighting against it.
Solution? Idea!
Looking as an outsider knowing Binance API and Socket’s quite well, I break down:
1st idea: Before any trade is made there should be some order’s up (I guess that there aren’t all market orders — if they are these is useless)!? Subscribe to !BookTicker and record all-record on the fly 24/7. Than make a comparison for each insert to your existing API downloaded coin list. Symbol that in DB record doesn’t exist is NEW! And as soon as some new coin appears that is not in your DB just make a trade. Do not check or compare or call API again. Just send order same moment that you receive unknown symbol.
2nd idea: Requires much more money and accounts plus knowledge. Before any new coin’s is listed it usually appears at some other market. Kraken, uniswap… and once your script get’s that new coin instead of making trade at Binance try to make it at other market where these symbols already exist.
Conclusion
Nothing of these was tested is just my direct response to a topic that really inspires me.
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Cheers!
