Market Maker Bot Strategy

[Iamtheonewhoknockss]

The telegram group seems to be full of interest around the hunterwhalehunter strategy on spot
So in this trading strategy post I will,

1. Summarise my understanding of the hunterwhalehunter Market Maker bot strategy
2. Provide a reasonable capital requirement for all of Gainium community to run the strategy
3. Ask if Ares and Maksym can provide us a way where we can run with multiple people invested in it to meet the capital needs

Summary of hunterwhalehunter Market Make Bot Strategy
I will try to keep it simple and with as less words as possible.

Long spot bot covers -91%
https://app.gainium.io/bot/670f03ed720e8c31b02a7e87?a=8983&aid=share-bot&share=4fd5f407-1d93-4d94-ad64-04a25e8cd6ec

Short spot bot covers +403%
https://app.gainium.io/bot/6704874a3d0e13072ec435c3?a=8983&aid=share-bot&share=70f5be70-d5af-4019-b2b4-1af7988bc2c1

To put it into perspective if BO starts at 100$ price
Last long bot SO is at 9$
Last short bot SO is at 503$

ASAP as the price range is massive
Long bot needs 100$ capital
Short bot needs 200$ base coin worth capital
So 300$ per pair is needed

Now from what I read on telegram hunterwhalehunter trades 370 binance pairs with BO 5.6$ needing a 111k capital and is generating ~ 300$ per day gains. Impressive numbers for spot.
To make this work he has an Enterprise plan, if you are planning to run more than 300 bots talk to the team about the cost.

Now to provide a way for anyone in the community to replicate it

Bybit exchange offers 1$ order sizes for 100+ pairs on spot with decent liquidity.
If BO can be 1$ instead of 5.6$ and trading pairs are 100 instead of 370 then
Per pair we need = 300 / 5.6 ~= 50$ per pair
Capital needed to run a similarish strategy on Bybit = 100 pairs x 50 per pair = 5k capital
Not same as running 370 pairs but somewhat comparable doing 100 pairs

Still 5k is a lot of money and running it will need 100 x 2 = 200 bots to be created manually.
Yikes no one wants to do that.
Unsure if short spot bots can be multipair? Never ran them

Ares and Maksym providing a way to copy the strategy

In my mind this is how it would work.
Every interested Gainium community member pays a Market Maker bot fee like subscription fee lets say 100$
This gets pooled into a fund ( bybit subaccount which gainium controls). Once 5k is pooled maybe Ares,Maksym can have a setup config in the backend to run 100 long bots and 100 short bots run on this Bybit subaccount
This prevents users tons of manual time and effort and reduces server loads too.

A new webpage can display the subaccount portfolio value every day as a tracker for the people who have paid the strategy fee
Maybe Gainium can charge pooled users 10% of strategy fee for the setup and hassle free buy in into this Market Maker strategy.

If pooled funds increase then wait till say 10k and make the BO 2$ for the bots.
And so on…

This can be a great unique Gainium only feature which benefits the interested community members and also Gainium through the 10% strategy setup fee

Lastly the disclaimer and questions,

• I do have reservations about this strategy as somethings dont add up
• Firstly when 200$ worth of base is bought then the portfolio rise and fall becomes heavily connected to the market direction.
• Even though we might not see it in the coming months a big drop will result in base coin bag losing value alot while longs also accumulate uPnL so portfolio value drops.
• What happens when an interested user pays the strategy fee sees the declining portfolio value and wants out. A minimum lock up period of 30 days might need to be mentioned.
• Keeping the strategy fee low makes sure people arent asking their strategy fee to be withdrawn for every little dump

Thanks for sharing the strategy hunterwhalehunter

[jimmystevanus747]

I want share some photo from his strategy because i follow his strategy with low capital 7.000 USD and just edit trailing take profit to 0.1%.

This Strategy running 33 days

[Iamtheonewhoknockss]

how many pairs do you run for 7k capital?
Is BO 5.6$ as well as i see its binance

[jimmystevanus747]

Okay I run 47 Long Bot, 24 Short Bot, 2 Gap Bot. I think total 73 Bot

GAINIUM BOT TRACKER @GAINIUMDAILY

its my coin and setting, i share my documentation for newbie. bcz newbie strong if together hahaha

[jimmystevanus747]

some bot with DCA Active and i must cover it with daily profit.

[ximonx]

Thank you very much for the summary, but can someone explain GAP bots? When should we open them? I mean those bots with minimum and maximum price. This is the only part I don’t understand, and the explanation could help other users too.

[jimmystevanus747]

I just random name it.

GAP bots are used to fill holes/gaps in coins, for example WIF coins are priced at 3.4 usd

take Profit at 3.92 USD
and the nearest SO is 2.656 USD

so Bot can’t do TP because the target is still far away. and that’s what GAP bot needs. he is the same as regular Long and short bots as above.

It’s just that it has 2 SO and little capital. GAP bot consists of long bot and short bot.

so it must be a single bot. my suggestion is in PRO plan or Enterprise

[jimmystevanus747]

GAP Long Bot use Maximal Price Deal to Open : 3.92 USD
GAP Short Bot use Minimal Price Deal to Open : 2.656 USD

[ximonx]

So if I understand correctly, there aren’t any strict rules about when to open a GAP bot - I create a GAP bot essentially when I see it would take too long to achieve profit with the first DCA bot, right?

Is the role of GAP bots therefore to rescue the main bot, meaning to balance out its loss? If I’m thinking correctly, I’ll need lots of such GAP bots to help me achieve the profit that the main bot lost, or is there different logic behind it?

[illustrat0r]

I might have 10k to test out the strategy if someone can point me to the TG to learn more about it.

@jimmystevanus747 do I see it correctly that you made a profit of $585 in Nov with an investment of $7k?

[aressanch]

@Iamtheonewhoknockss

Ask if Ares and Maksym can provide us a way where we can run with multiple people invested in it to meet the capital needs

To answer this question, I have already considered it. There are a few challenges. The first one is legal: operating customer funds requires licenses. The second one is the time required to make it happen. It will be a big project, so it’s the kind of project that I would need to crowdfund before starting it.

@Iamtheonewhoknockss

To make this work he has an Enterprise plan with too many bots which none of us can afford.

Enterprise plans are not that expensive. It depends on resource usage. Simple ASAP bots like this one are $180/1000 bots/year, on top of the Pro plan.

What I think it would be more doable is to create a Hedge bot. This bot will manage the initial base buy and configure the long and short settings. Then you can use whatever capital you have available to get as many pairs as possible. Some people will have 50 on Binance, some 100 in bybit, but as long as there are a significant number (around 50 or more) it should still get benefit from diversification. Then as you get USDT in profits, just add more pairs.

[Iamtheonewhoknockss]

Thanks for considering.
Yeah hedge bot might make things easier.

Also api endpoints to create those bots as making say 100 bots will take too much effort

[aressanch]

Multipair hedge? Actually I think I’ve asked this before to Whalehunter but can’t remember what the answer was, why cant the setup be done with multipair bots?

[d_yo_r]

E.g. because there are no “short” spot multi-pair bots.

[Iamtheonewhoknockss]

whatever makes life easier than doing a lot of manual clicks

[Rossano]

Bots need to be created per pairing - having multipairs on a single bot makes things more complicated. This is mainly because the long/short strategy isn’t a bot or settings strategy but it’s part of a longer process.

Initial long and short are ONLY need to define the gap or trap (phase 1) - once the distance between long and short is big enough then more bots fill that gap using min and max (phase 2)

If you make this bot a multipair bot it won’t be used

[aressanch]

Interesting, but I can’t visualize what it means. How about we change this post to a wiki and let users familiar with the technique contribute?

[Rossano]

one useful thing could be to integrate the ‘base buy task’ into the short bot (spot)

So when we want to add a new paring in short the bot automatically buys the corresponding amount of $ for that coin

at the moment we need to nut the asset in the terminal (step 1) then set the short (step 2)

[Rossano]

The space between the red and green line is the gap we can fill in phase 2

When do we start filling that gap?
The bigger the gap the better - in the example below the gap is so big that Binance doesn’t even displays the order anymore

XLM SHORT

XLM LONG

Our gap is now big enough to be filled with min/max bots
Long using max price
Short using min price

[Iamtheonewhoknockss]

A few examples for how gap filling can be done will be helpful.

Also one more thing I want to understand is if all bots are setup then 2/3rd of the portfolio is base coin.

Wouldn’t that make portfolio value just dependant on market direction
Up if green or down if red