It’s been over 3 months of learning, testing and coding since I first started working on a crypto trading bot that takes advantage of the Binance Announcement page to buy new coins as early as possible. The gate.io version of this trading bot looks like it’s been able to successfully make a profit using this strategy.
Context on the gate.io crypto trading bot:
Before looking at the results that this final version of the gate.io bot has generated, it’s important to understand how the idea started in the first place as well as the changes required in order to make turn this into a profitable crypto trading algorithm. You can watch the video down below for a quick recap, or continue reading:
The initial idea was to create a crypto trading bot in Python that looks at the Binance Announcement page, and places buy orders on new listings the moment they become available. The reason behind that is that a lot of new listings spike up a lot in the initial moments of the listing. Previous testing showed that no matter how early you buy a new Binance listing, it will always be too late to make an immediate profit. The fastest achievable speed is 0.1 seconds (which is simply not fast enough), due to the limits of the Binance API. Anything faster will get you a temp IP ban.
It was later observed that a actual spike in price takes place outside of the Binance exchange at the time that the Announcement is made, and not when the coin is actually listed by Binance – that’s just the peak of the iceberg.
Here’s an example of it:
See how the price of CHESS/USDT spikes at the same time as the Binance announcement is posted, check the timestamps.
Optimising the gate.io crypto trading bot
First of all, we call it the gate.io trading bot (more info linked) because it uses the Gate.io exchange in order to place trades. So instead of buying a new coin when it gets listed on Binance, it scans the announcement page and, once a new coin listing announcement is made, it will automatically buy this coin on Gate.io.
Right so with the strategy all nailed down, it took about another month of testing and optimisation before the bot would do anything interesting. But here we are, 3 months later with a functional trading bot that seems to be making decent gains on new listings (though it can be improved).
During the initial testing phase of the gate.io strategy, the main blocker has been the speed of execution. At the time, it looked like Binance is purposefully delaying announcements by 5 minutes to facilitate insider trading, however after some more investigation, that doesn’t seem to be the case. It’s most likely an issue caused by the X-cache of the endpoint that we’ve been querying. The workaround was to randomise the query sent to this endpoint, as well as replacing the current endpoint with a faster one.
I would also like to thank everyone who has contributed to the codebase on GitHub. With the discord server exploding, and so many people interested in the tool – my role unwillingly turned into a community /project manager rather than doing much coding in the last couple of weeks.
The results (so far):
So bear in mind that this only includes the latest iteration of the bot, before this update the bot was not profitable.
The gate.io bot has made 10% gains on MOVR (live mode):
… and 25% gains on ENS (test mode)
It’s still super early to tell whether the bot will be consistently profitable, but it’s looking rather promising so far. The tool comes with a test mode so you can test it out without throwing real money at it.
If you want to test this trading bot out yourself, see the guide here.
For example, currently, there are 10000 people running bot at the same time, each person will get 10% of the profit, meaning that each person $ 1000 will have a profit from the floor $ 1000000 but whether 100000 people or 200000 run bots at the same time will be > 10000000$. Do you think the exchange will block this job at that time.
Any idea how often are new coins announced? I’ve been running the scripts for several days with no action. Is that normal? Thanks!
Hi Andrei – liking the look of your new approach here. wonered how you got on with today’s new listing of https://www.gate.io/trade/JASMY_USDT ??
I happened to be in test mode on this, but captured the price (as a rest api request of the price from the endpoint) when it was at 0.147635 [literally at a few seconds before 07:00 GMT]. Of course, there’s no saying that I’d have got an order matched at this price but it did look very positive.
Have you found a similar tally in terms of getting a decent ping on the price while matching the bid when actually buying??
I’m thinking there are quite a number of scenarios that could play out here, in a similar way to how you side shifted to gate.io as the target (very nice play!!).
anyway -just thought i’d pop back after my initial comments a few months back.
cheers again
jim
I of course meant 08:00 – not 07:00. having looked at the trades tho’, i can’t see how i captured anywhere near 0.147635 (it’s showing around 0.179652 in the 10 seconds leading up to 08:00). So there are definitely some sharp shooters out there that are getting this *play* pretty much as it is released and are getting matched before the rest of the gang arrive.
Next steps– try to frontrun that queue [if it’s even possible] 😉
I bought PYR 16 seconds after the announcement (at 2021-11-26 04:45:16) and even that early the price already pumped way above the initial price
The trade resulted in a loss – how can I prevent this, can I update the refresh rate?
// R
I would like to share my experience, code works perfect, put it on a VPS working 24/7, I set 20% profit, but never reached, I believe it was like 5 or 6%, price was way up.
GATE-IO – PUMPED 01:00 A.M. Sharp
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Website – Binance Will List Merit Circle (MC) 2021-12-02 01:02 –>> probably 01:02 almost 03
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Twitter – 1:03 a. m. · 2 dic. 2021·Twitter for iPhone
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Python – 2021-12-02 05:03:02,636 INFO: New coin detected: MC
…
Python – 2021-12-02 05:03:02,636 INFO: New announcement detected: MC
Bougth some for price=13.434 – price already pumped arround 1:00 a.m.
stop loss, had to sell for price=12.811
Thank you for share your skills, always learning with you.