Follow the trend

Follow the trend feature for the Flash Crash Bot

The Follow The Trend (FTT) feature will allow the bot to follow slow-moving markets in anticipation of a real flash crash (up or down) without orders executing while the market is sideways. The FTT setting creates a narrow range that allows for some price movement. When the price slowly breaks out of this channel, the bot will adjust in such a way that the price will be back within the range. Once the flash crash occurs, the price will break out of the channel fast and will complete the first order. At that time the feature will be disabled and the Flash Crash Bot will operate as normal.

Restrictions

  • The Flash Crash Bot can only have orders on 1 side. Only buy or only sell orders.

  • The feature will deactivate once the first orders has been completed.

  • This feature will only work when the selected price spread is Fixed Amount or Percentage Spread.

Check Interval

Every time the interval expires the channel gets relocated so that the price is inside the channel again. Orders will be cancelled and relocated in order to keep the distance to the channel.

Price Channel Size

The size of the channel in price spread steps. The bigger the channel, the more room the price has to move in before the channel gets relocated.

Price Channel Offset

The distances between the base price and start off the channel. Use a higher number for anticipating big flash flashes.

Example

  • Bot with only buy orders.

  • Base price of $14.000

  • A Fixed Amount Spread of $100

  • Price Channel Offset of 2

  • Current price at the exchange is at $14,200

Scenario one - Price slowly drops. Let’s assume the price slowly drops to $14,150. The Check Interval kicks in, and the FTT will relocate the price channel so it will have a new range of $14,100 - $14,300. The bot will cancel the first buy order at $13,900 and the new order (which is still the first order) is now at $13,800.

Scenario two - Price slowly or quickly rises. Let’s assume the price rises to $14,830. The Check Interval kicks in, and the FTT will relocate the price channel to have a range of $14,800 - $15,000. The bot will cancel the first buy order at $13,900 and the new order will be set at $13.800

Scenario three - A flash crash happens. Someone made a big mistake and created a large market sell order. The price rapidly drops to $12.000 and bounce back to $13.700. The Flash Crash Bot will get its first (batch of) completed orders. It will disable the FTT and start processing the buy orders and placing sell orders. Normal operations will continue until manually readjusted.