What Are the Major Types of Strategies Being Used in Crypto Market-Making Bots? | Forum

Topic location: Forum home » General » General Chat
smithtaylr
smithtaylr Oct 4

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