FTX trading bot
FTX is a cryptocurrency exchange focused on futures trading. FTX has quarterly and perpetual futures on the main cryptocurrencies. FTX has also listed Index Futures which opens traders to a pool of a wide spectrum from large-cap coins to exchange tokens and regional baskets at once. Additionally, FTX’s leverage provides an automated way for traders to get leverage. By using FTX’s leverage tokens traders could utilize Bull and Bear tokens which automatically manages their exposure, rebalancing daily to maintain their target leverage and prevent liquidations.
FTX has also entered the options world with introducing Move. These contracts are futures that expire to the raw amount of which BTC moves in a specific time period, allowing traders on the amount of bitcoin that is going to move without having to know the direction.
FTX also provides a 24/7 OTC service through its Alameda research (the company was founded with the same group as FTX aimed at market making services). Moreover, FTX provides ecosystem utility token called FTT. Holders of FTT could take advantage of lower FTX trading fees and the utility token can be used as collateral for future trading.
FTX provides REST, WebSockets and FIX APIs for algorithmic trading. The HTTP based REST API is capable of full trading and asset management functionalities. The REST API has a public order book, trade data as well as private account data and order management. The request/response in this API uses JSON.
The FTX’s FIX API (Financial Information eXchange) which is a standard electronic messaging protocol which is used to execute orders, receive order updates and place and cancel orders. The FTX’s FIX API is based on the FIX 4.2 specification and modelled after FIX implementations of other popular cryptocurrency exchanges. A sample client code for FTX’s FIX API can be found here.
The Websocket API on FTX is a streaming API with an up-to-date market and account order data. With this API, traders could send messages to a server and receive event-driven responses without having to poll the server for a reply. A sample client code for FTX’s WebSocket API can be found here.
FTX trading bots
At Empirica, we continuously integrate our trading bots to cryptocurrency exchanges, 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 FTX:
- Market Making bot: the service of quoting continuous passive trades prices to provide liquidity, and also be able to make a profit on spread 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 her 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 FTX or other crypto exchanges, you can consult with our quant team.
Have you implemented other trading bots?
We have implemented following bots and algorithms: