Bitfinex trading bot
Introduction to Bitfinex:
Bitfinex digital assets exchange was founded in 2012 and since then has been one of the main venue traders perform their trades on this exchange. Bitfinex services vary, with a conventional trading experience Bitfinex allows its users to trade across a wide range of digital assets. Bitfinex Margin Trading allows users to trade with up to 5x leverage by receiving funding from the peer to peer margin funding platform. Moreover, with Bitfinex Margin Funding there is a secure way for Bitfinex users to earn interest on fiat and digital assets by providing funding to traders wanting to trade with leverage. Bitfinex has also created derivative products for its users. Perpetual contracts are already available in Bitfinex.
Bitfinex also has a staking program which has enabled its users to gain staking interest by depositing EOS, Tezos, Cosom, Algorand and V.Systems. There is no minimum deposit but the interests users earn varies depending on the token and staking profits are deposited weekly.
Additionally, Bitfinex has introduced ‘developer reward’ program. In this promotion traders and developers who integrate an affiliate code to their product and services will earn a 5% rebate.
To connect to Bitfinex Applications can be developed with REST endpoints or developers and traders can choose to make use of WebSocket API. In some cases, applications could be developed with a combination of both. This may sometimes be required depending on the case, as some data can only be retrieved through REST endpoints (e.g. historical data). Bitfinex recommends using WebSocket API wherever possible.
Users of REST are subject to rate limits and thereby limited in the volume of data that they can retrieve within a given time frame. Through the WebSocket integration, users are privileged to open up to 5 connections every 15 seconds using wss://api.bitfinex.com/ for authenticated connections. In addition, 20 connections per minute can be opened using wss://api-pub.bitfinex.com/ for connections to public channels. Each connection can be used to connect to up to 25 different channels.
At Empirica, we have integrated our trading bots with Bitfinext API, so that our customers can use it out of the box. Let’s name some trading bots that can be applied through API integration on Bitfinex:
- Market Making bot: the service of quoting continuous passive trades prices to provide liquidity, and also be able to make some profits throughout this process.
- Arbitrage bot: takes advantage of small differences between markets. It is a trading activity that makes profits by exploiting the price differences of identical or similar financial instruments on different markets.
- Price mirroring bot: this bot uses liquidity and hedging possibilities from other markets to make the markets in a profitable way.
- Triangular Arbitrage bot: using this bot a trader could use the opportunity of exploiting the arbitrage opportunity from three different FX currencies or Cryptocurrencies.
- Basket Orders bot: with this bot, it is possible to execute trades on multiple coins at the same time with the possibility to hedge against other coins.
- VWAP bot: using this bot a trader can achieve the best price with large order by splitting it into multiple smaller ones throughout the trading day.
- Smart Order Routing bot: with this bot, the trader can find the best price for your order on all crypto exchanges and execute it.
In case you would need help from professional software developers to help you build proprietary trading bots and integrate it with API of Bitfinex or other crypto exchanges, you can consult with our quant team.
Have you implemented other trading bots?
We have implemented following bots and algorithms: