📎Trading Bot Development Update (3/3)
We are making good progress with the trade execution engine. It’s the part that actually makes the trades, monitors them, and handles errors and outages. We want to start BETA testing in early to mid-November. 🦄
Just to give you a better understanding of why this takes so much time and effort to build:
•➕Executing trades, monitoring them, and tracking their fill across various strategies with varying order sizes and multiple coins is needed.
• ➕ We need to check for various errors, even those that don’t say what they are: not enough balance (withdrawn, added funds), order only partially filled, order rejected, TP or SL not correct (price moved too fast, some exchanges just execute the TP/SL, others throw an error), API keys/permissions wrong, or not valid any more, user accidentally closed the order, opened more, changed the leverage, partially closed the trade, changed the hedge mode, changed the margin mode.
• ➕ The points mentioned above pertain to both spot and futures trading. Why? Using 1x LONG only daily makes more sense on Spot, as the fees are significantly lower, and you don't have to pay the funding rate very 8h.
• ➕ Not all exchanges have all coins; not all of them are available as futures; and not all of them have the same step sizes, minimum order sizes, and leverages. All of these things need to align with the strategy.
• ➕ The topic of performance fees is another important consideration. It needs to be on-chain, as transparent as possible, and as simple as possible to avoid exploits. We must have the ability to deduct performance fees, provide you with APY, and allow you to stake, add, and remove AIC tokens. We must notify you when your AIC tokens are running low. What happens if you are not filling them up on time? Close all orders? Furthermore, we don’t want you to be there two days before the end of the month to continue staking, etc.
⌛All of the above, including the trade execution engine, the databases, the strategies, and the tracking, need to have a close to 100% uptime. In the event of a server crash, the system must restart, pinpoint the exact point of failure, identify the most recent trades, identify the uncompleted actions, identify the actions that require completion, and more.
⚙️The best strategy won’t work if the trade execution fails. This typically occurs during periods of high market volatility or so-called black swan events. The trade execution engine needs to know what to do when the exchanges send some Chinese texts (and yes, some do this!). It must continue to function and attempt to execute the trades as intended. If the backtests show a maximum drawdown of 10% and another black swan event occurs, the trade execution engine must continue to function, trying to achieve the best possible results without requiring human intervention. This is very critical.
💡Furthermore, we need to design the entire execution engine to be fast and compatible with limit orders. The first release will use market orders, as they are easier to handle. The next update will be the switch from market to limit orders, which need more tracking, more handling, and even more error handling.
We will announce the beta testing as soon as it begins. We will open this beta testing to a small circle of token holders and the team, allowing them to try it out and simulate such extreme situations.
➡️This is merely a preliminary summary of everything we need to review and address. If we didn’t do this correctly, the execution would fail, and we would produce more problems than we would solve.
If you have questions, please let us know in the chat. Like, comment!👍 💯
Cheers, Crypticorn Team! 🦄
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