Here come the crypto trading algorithms
After spending a few decades on the street I got to see first-hand how the trading algorithm revolution lead to sophisticated and complex strategies that were necessary to execute trades efficiently and effectively. This revolution is coming to cryptocurrency.
First, let’s define what a trading algorithm is—simply put, algorithms are a method of executing orders using a set of rules based on a multitude of dimensions (volume, time, venue) in order to fan out orders to accomplish certain objectives (speed, secrecy, price).
The most important thing to remember is that not all algos are created equal. That’s why we’ve assembled a team of street veterans with experience crafting algorithms for some of the most successful shops.
Our algorithms include a blend of well-established algorithms along with custom algorithms created by our team. Unlike most existing cryptocurrency algorithms, all of our algorithms execute across multiple venues. Our algorithms can be blended according to each individual trader’s strategy.
- BASKET - Executes multiple trades of multiple coins simultaneously and over a period of time using TWAP or other time-based strategies.
- TWAP (Time Weighted Average Price) - Executes trades evenly over a specified time period
- VWAP (Volume Weighted Average Price) - Executes trades evenly based on trading volume.
- THOR - Executes one order across multiple venues so they arrive at each venue at the same time to minimize market impact.
- ICEBERG - Executes orders in random slice sizes over a period of time over multiple venues to minimize market impact.
- Pairs Trades - Executes two trades of individual coins while maintaining a balance between the long and the short side of the trade.
- IWAP (Information Weight Average Price) - A custom Mainbloq algorithm that trades in windows of fixed notional while varying the duration.
- ISR (Implementation Shortfall Reducer) - A custom Mainbloq algorithm that reduces slippage and balances market impact by controlling the rate of execution.
These algorithms are just the start. We’re crafting sophisticated strategies to ensure our clients can execute effectively and efficiently. We also work with our clients to create tailored algorithms so they can execute their trading strategies.
Our mission at Mainbloq is to bring the sophistication of traditional finance to digital assets. Our streaming smart order router is the most efficient way to trade cryptocurrencies across multiple exchanges. Our algorithms help traders execute their strategies smarter. You might be thinking, what comes next? You’ll just have to wait and see...
Crypto-Fracking: Why advanced smart order routing is the next frontier for crypto
The power of smart order routing infrastructure on the cryptocurrency markets is exponential... and necessary.
Hydraulic Fracturing, also known as fracking, is a process where a pressurized liquid is injected into rocks forming tiny fractures to allow petroleum and natural gas to flow freely in order to extract it. There is debate over its impact on the environment, but there is no doubt it has revolutionized global energy. Fracking has created the ability to extract oil and gas where it was not possible before—it has literally created more liquidity in energy. Smart Order Routing can do the same for digital assets.
Traders looking to buy and sell cryptocurrencies at the best price need to traverse dozens of exchanges and chip away their position with no guarantee that they’re getting the best price at the moment they execute their trades. There is a better way.
At Mainbloq we’ve integrated a Streaming Smart Order Router into our TradeBloq execution management system that solves these problems. With the press of one button trades are executed across multiple exchanges to ensure the best price. Our SOR has direct, streaming connections to all of the major exchanges ensuring trades are executed faster than anyone else. Smart order routing reduces slippage since all trades executed near simultaneously, the market making bots don't have time to widen the spreads when they spot a large trade.
Before fracking, oil and natural gas could only be extracted from large, easily accessible wells. Fracking recalibrated the economics of extracting energy from smaller, less accessible sources. The same applied to digital assets—it wasn’t feasible for sophisticated traders to efficiently make large trades—that changes today. Our Smart Order Router gives traders the ability to press one button and extract slices of liquidity across dozens of exchanges and currency pairs, at the best price.
Smart Order Routing is just one small piece of what we’re creating at MainBloq. We’re building a best-in-class cloud-based modular platform joining data, tools, research, and insights for digital assets. It’s time that cryptocurrency got more sophisticated.