Was wondering if it's too late in the game to invest or do short term trading using coinbase API? I am planning to write a customized trading app myself which buys or sells based on my risk appetite that day. Is it worth the effort? Do any of you guys do it?
First, choose an exchange that is stable, does not go down when there is a quick market movement. When that happens only stop-loss orders get executed _automatically_.
Second, now the exchange fee structure. Some markets have different fees for "makers" and "takers (ppl that makes an order without counterparty and the ones that match existing buy/sell orders). I've seen 0% fees for market _makers_.
Third, Test your strategy. Dont' just measure how much you win. Check your drawback (how much you loose at peak). If it's not acceptable to you, DO NO TRADE that strategy. If you don't have an strategy, you're gambling, not trading.
Fourth, most crypto markets have _very_ low volume. Don't trade there because you will move the market with pennies.
Is this something you'd be interested in?
Something like Bitcoin is going so strong because it had gone 'mainstream' and is vulnerable. There are several bubbles going on at the same time, one pops and crashes while the others keep growing. But ETH is still a niche and doesn't really have all the pops and crashes, so one can't just apply the same pattern across all cryptocurrencies.
But it's something interesting if it can be done.
He doesn’t make the bot public, but you can check out this open-sourced bot(https://github.com/butor/blackbird) that arbitrates among the prices in these exchanges below. * Bitfinex * OKCoin * Bitstamp * Gemini * Kraken
Please keep in mind that 1) I don't know how this bot exactly works because I didn't read the code yet and 2) this bot might not be the best one out there.
Just add in some kind of intervention system is the sell/buy is high because the volatile nature of the currencies can see major drops/gains which can cause all sorts of bother.
Anyway, it is a pretty good API that is directly tied into the exchange, so you are fairly close to the data.
There is no pricing, just fees. Fees are fairly low.
For higher frequency trading (does not seem like what OP was doing) it can matter, but if you're trading on 5-10% change, well, it won't be a big percent of your earnings.
Crypto markets, although slow, don't have companies worth billions of dollars and thousands of employees trading.
There are actually windows that can stay open for minutes at a time, rather than seconds or milliseconds.
Coins are going up and down 10-30% for no "real" reasons.
Was wondering if it's too late in the game to flip houses?"
"Over the past few years, I was one of the many people who wrote off dot-coms. But apparently it grew by value and volume exponentially.
Was wondering if it's too late in the game to trade dot-coms?"
"Over the past few years, I was one of the many people who wrote off trading in tulip futures. But apparently it grew by value and volume exponentially.
Was wondering if it's too late in the game to trade tulip futures?"
Etc.
Imagine a 1000 sided dice. Lose $2000 if you roll a 1. Otherwise make $1.
Roll it 10 times. Looks like your making money!