Trading/Financial Systems General

Whether it be for stocks, commodities, or crypto, let's discuss trading systems and programming. I will start out. Santa Fe Stock Exchange: https://www2.econ.iastate.edu/tesfatsi/blake.sfisum.pdf(USER WAS WARNED FOR THIS POST, You should always elaborate on your opinions rather than just spilling the soykaf.)

its cool topic but i never managed to make something working. I liked book attached, many lainons can relate cuz it uses Common Lisp

My idea for a crypto trading bot, which I'm not sure if it would actually work, is to try to identify wallets acting on inside info on DeFi exchanges, and mirror their trades going forward. This could be possible in a way it wouldn't be on traditional exchanges because every trade is public, and probably there are successful traders who do not bother concealing their activity by diligently creating new wallets on a regular basis. You could somewhat conceal that you are doing this by mirroring the trade on a non-DeFi exchange. The risk of course would be that they could realize what is going on and trick you into bad trades that profit them.

>>35287 well the problem with that is most trading is happening in the websites database and not the blockchain. the complete opposite of what blockchain was supposed to be about; centralization. i believe it works similarly to this; when i purchase $1000 USD worth of Doge on Binance with my BTC, none of that trade is occurring on the blockchain. Binance is just shifting some numbers around in their database for my profile. only when i want to cash out of Binance will the blockchain be used. so if what i'm saying is anything close to correct, there is very little data for you to work with to achieve this.

>>35298 It's true that technically most trading is happening on centralized exchanges, but it's not true that there is very little activity or data for decentralized exchanges, it's actually significant. Uniswap alone has 2 billion dollars of trading volume for the last 24 hours, all of that is public.

>>35300 that's cool i'm definitely not familiar with (you?) >>35287 the DeFi exchanges. a lot of the crypto stuff is new to me. i was into it years ago when there was only the big exchanges like Binance. so if that idea is feasible, wouldnt a lot people already be doing it? there should be some material / writing about the technique.

>>35301 > so if that idea is feasible, wouldnt a lot people already be doing it? there should be some material / writing about the technique. There might be a lot of people doing it, I don't know, but if you always trust the efficient market hypothesis you'd have to dismiss just about every idea. As for there being writing, I doubt it, if someone has something that actually works generally they wouldn't publicize it for obvious reasons, and most crypto trading strategies you see posted around are literally trying to scam you. Even if not using this specific idea, I think it would be very useful for developing strategies to acquire Uniswap transaction data/history of wallets that interact with it, and write scripts to crawl through it, gotta be some interesting stuff in there.

>>35302 no doubt, man. it sounds really interesting to me and im not even involved with crypto stuff anymore. so have you tested anything yet? how would you find accounts, also i wonder what the rate limiting is like for scraping this data? are there ways to access it behind the scenes of front end sites?

>>35304 Nah if I wasn't too unmotivated to do it myself I wouldn't be talking about it. Rate limiting is a problem for the easiest ways to get relevant data like the Etherscan api and RPC providers. You'd have to run an Ethereum node yourself (needs large SSD) or use something like this https://cloud.google.com/blog/products/data-analytics/ethereum-bigquery-public-dataset-smart-contract-analytics I've used the former easy ways before for other things but not anything suitable for bulk analysis, probably a little complicated.

>>35302 I remember watching an interview with the guy who popularized it and he said even Buffet like undervalued securities are possible. Also he stated in the short term it is not efficient but on a long enough horizon it is. It is kind of funny how he said it was close to what Graham and Dodd basically said. Also I think in the interview he did mention this did not take into account QE and the like.

>>35298 I have been wanting to do trade correlations. Since institutions control a large swathe of the market, correlating swings in the market could b a tad bit easy.

>>35156 Nice to see some life in here. It seems like a lot of innovation is happening in the crypto market, which is good. Side note, I thought that Blackrock made Aladdin open source. Maybe I am thinking of Goldman?