I’ve noticed this as well and been working hard at building different strategies to try to turn profits even in this stagnant market. Make no bones about it…it ain’t easy by any stretch of the imagination. This may sound weird, but I am kind of getting further and further away from going on traditional TA style probability and predictive analysis with candlesticks and focusing strictly on the order books and the rolling trades log and coupling that with signals coming from the surrounding markets and even other exchanges. Mostly I’m looking for patterns in either the size of the orders coming through and how they change the direction of the price action and clustering of orders around certain points as a way to form some sort of predictive indicator of what’s to come next…if nothing else, during this dry spell, I’m taking time out to build visual heads up displays on all that data that’s flowing through the pipelines. One I’m lately truly fascinated by is the trades log activity as seen below. The bigger the trade size, the bigger the bubble. The higher the price, the higher up on the Y axis.
oh, and while I’m typing this, I see Fishy’s 37 bitcoin order (along the way to reaching 60 flow though…)
I have to say, @Mike_Fishy is absolutely spot on that just building a bot or even a few bots and just letting them run maintenance free is NOT the reality. I am constantly tending to and improving mine as well. If nothing else, I’m learning a ton about what’s really happening behind the scenes that simply isn’t exposed to most people trading these markets. Capturing data, analyzing and trying to build bots to play into those trends seems to be a never-ending one-up-the-other-bots game.
I actually started wondering if I was doing things the hard way and went and grabbed a couple of the open source bots off the shelf and fired them up…the one I tested most was Zenbot and boy is that thing full of bugs. It seems to miraculously make profit when in simulation mode, but the moment you go live with it, it’s all losses. Maybe I just had the knack for turning it on at just the right time to realize those losses but over a couple day’s experimenting, I have to say I’m simply not impressed.