Leading name in the automated cryptocurrency trading segment, Cryptohopper has come out with another innovative feature. Called Market Maker bot, this feature provides a host of features that you can utilize for maximizing your gains on investment.
What is a Market Maker?
Market making consists of trading the difference between the bid (buy price) and the ask (sell price), also known as the spread, of a cryptocurrency pair. The market-making bot will continuously trade the spread of any selected market.
The definition of the market maker suggests that one must be quoting the price (both buying price and selling price) all the time to access conditions of the market continuously. It is also imperative for the market maker to quote the volume it is interested in trading, and all these norms and parameters must be fulfilled for one to remain in the category of a market maker. Even when the market becomes volatile, it is the responsibility of the market maker to stick with the rules and continues to comply with the above-stated parameters to facilitate seamless and smooth transactions in the market.
Market Maker Bot
Taking into consideration all these suggested facets, the market maker bot launched by Cryptohopper provides traders with the capability to place the buying and selling orders in a layered manner to profit from the spread of the market. It also helps the market to remain liquid as the exchange process keeps on going, and accordingly, the market will keep on transacting regularly.
The market maker bot feature is available with the Hero subscription plan of Cryptohopper. Once you take the subscription, you will receive three choices: Trading bot, Arbitrage bot, and Market maker. You need to choose the third option, and after the general settings, you can proceed ahead to set the preferences in the market maker settings. A new widget with the name of the market maker bot will be created, and you will get several options about your trading strategy.
Some of the important options include the settings pertaining to the market, settings related to the strategy (different options for a particular market), settings related to the different market trends (allowing you to switch over from one market to another), settings related to the order layers (helping you to choose the option from whether buy and sell at the same time such as buy first and then sell or first sell and then buy). You will also be prompted to choose options in terms of buy amount, percentage higher ask, and percentage lower bid, which will help you to sell the orders within a particular range of increase/decrease of the value.
The option of Autocancel is a very convenient feature as it allows the trader to open and close its trading position at a particular time. If you set the Autocancel time, the market maker bot will automatically cancel orders within the time limit set by the user. The range of the time settings starts from a minimum of 30 seconds and stretches to a maximum of 99 days.
The feature of cancel on trend change will allow you to cancel the order according to the changes in the trends and patterns of the market. You can configure several different trends, e.g., downtrend to uptrend, neutral to downtrend, uptrend to downtrend, etc.
Cancel on percentage change is a feature using which you can cancel the order if the market has moved X percentage points in X period. The range of the time setting for this feature is one minute on the minimum side and 24 hours on the maximum side. You can also set the depth limit (ranges between 1 and 500) and then utilize the feature of Cancel on Depth.
For subscribers of Market maker bot, the dashboard will have some of the additional special features which will enhance the convenience of trading. Take, for instance, The tradingview widget, which will narrow down the view according to the time preferences you have chosen. You will also be able to see the depth of the orderbook to analyze and arrange your buying/selling preferences critically. You also get the option of manual market making where automatic features will be disabled, and your trading options with be executed similar to the normal processes.
Summing it together
Summarily, the Market maker bot takes the convenience of automated trading to a whole new level, and you have to experience it to realize its benefits. It is a wonderful invention from the Cryptohopper and definitely will go a long way in making the automated trading features even more popular among the trading enthusiasts.
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