Trading on centralized exchanges and generating profit is not the easiest thing to do for experienced users, let alone those new to trading or crypto. With NIOX Maker 2.0 on the horizon and another Swarm Campaign has just started with PIVX/BTC on Binance, it’s a good time to go over some of the Maker 1.0 Advanced Strategies and explain them in a way so that new users can get a hang of them and join in on the fun and have a good foundation to build upon. The advanced features that are going to be discussed in an easy to understand way are Reposition Orders, Rotate Orders, Staggered Orders, Price Band, and Hanging Orders. In all of the following an important rule of thumb is to always be sure that your buy and sell spread are both higher than the exchange fee so that you are not losing money on each transaction.
Reposition Orders will cancel and open new orders based on the set refresh time. This is generally good for when the market is jumping up and down quickly or indicating a strong uptrend or downtrend. Normally when the market starts trending outside of your initial maker settings for buy/sell spread, the limit orders you have placed on your order book would just stay there, waiting to be filled. This setting forces the Maker to cancel those orders and “reposition” them closer to the current price so that they have a better chance of being filled. As an example, setting the buy and sell spread both at .5% on a token that is priced at $1.0 would mean that the Maker will buy at $0.995 and sell at $1.005. If the trend is quickly moving up and the token is at $1.1 for a ten percent increase, the maker will fill your sell order at $1.005 but your buy order will still be sitting down at $0.995, which would mean the token would need to fall ten percent in price in order for your buy order to have a chance at being filled. Repositioning the order will set a new buy/sell order based on your set refresh time, continuing the spread of .5% based on the new price of $1.10 so that the Maker can continue trading.
Will place a buy and sell order with a time gap specified by the users refresh time. What this means is that based on the settings you have input for spread and refresh the Maker will initially put a buy order on the orderbook, wait the specified refresh time, and then place a sell order. With this, the buy and sell spread percentage may not be based on the same initial price. These orders will stay on the orderbook until one side is filled and once filled, it will reposition the other side so that there is a higher chance it can be filled as well. This is an ideal setting if you know that the token is following a certain trend as the Maker will continually reposition your orders to follow the trend in hopes of being filled.
Allows you to distribute your base order from both sides in the form of steps. For example, 50% of order size at 0.1% spread, 25% at 0.4% spread, 25% at 08% spread. This setting is ideal for choppy, sideways markets with a lot of volatility and volume as it gives your orders a higher chance of being filled. In this setting, you have to be sure that each part of the staggered order meets the minimum requirements for a trade on the exchange. For example, on Binance the minimum size is $10 so you cannot split that $10 into three staggered segments, each segment needs to be a minimum of $10. When setting your spreads for this setting, it is important to be sure that all of them are within range of what the token is trading in for the set time period so that you can give your orders the highest chance of being filled. If you look at the last thirty minutes to an hour of trading activity on your token and the price is going up and down by a max of 1%, you want to be sure that your highest spread is less than that 1%. The closer you are to the baseline of the price the more likely you are to fill your trades. If you want to go for a larger profit margin, hoping for high volatility, set your staggered orders to make the larger trades for buy/sell at a higher spread and smaller trades at a lower spread. For less risk (in potential profit making), or not expecting much volatility in the token, you may want to set it to buy/sell a higher percentage of your base trade at the smaller spreads.\
Allows you to set a price band that your Maker will place both buy and sell orders within. What this means is it allows the user to create a price zone for buying and selling in which the Maker will only create a buy order if the mid price of the token goes under the set buy zone price and conversely, will only create a sell order if the mid price of the token goes above the set price of the sell zone. While using this setting, it is important to remember that if you set the zones too far apart the orders may never fill as the prices never reach their set zones and to make sure your buy and sell zones are at least double the difference of the exchange fee spread, otherwise you could be buying and selling with too small a spread and losing money on each transaction. For example, if a token is trending around 95-99 cents on the hourly chart for the past couple of days and your goal is to start making trades in hopes for profit, you may not want to set your buy at 90 cents and sell at 105 cents as it would not be very likely to make any trades. You’ll want to set the price bands closer to the actual price action if you are looking to get some trades in. Conversely, if you want to accumulate a token under a certain price for the long term and aren’t necessarily concerned with selling them at this time, setting the price bands considerably lower or higher than they are currently trending can allow you to catch dips in the token when they happen, or sell on breakouts. Ivan, one of Autonio’s best makers, has a video on this very topic that is extremely informative here.
Allows you to keep the placed order hanging if one of the orders gets filled, If your buy/sell order gets filled then it will not cancel the other side of the order but will keep it hanging in the order books. Hanging orders is a wonderful setting for beginners to learn the Maker and to get the hang of how to use it in a safer way. To explain how it works simply, if you start the maker with hanging orders on and a spread of 1% on a token that is $1 and your buy order is filled at 99 cents, the Maker will not cancel the sell order (at $1.01) and will wait for it to be filled, essentially meaning that the Maker will be sure that your orders are generating a profit. Without this on, if the token is in a downtrend you could end up buying the token at 99 cents, the orders reposition, and you sell the token at 98 cents, losing money on the trade. Although, users may not always want to keep this on, as if a token dips and then goes into sideways price action you could be missing out on potential profit and trades as your hanging order is stuck above the trending line, but it is recommended for beginners as they get a hang of how trading works and how to use the Maker. With the minimum refresh time of six hours on hanging orders if the order is not filled, hanging orders is a sort of safety valve on trading with Maker to give users a higher chance of generating profits with their trades.
That is it for this segment of Beginners Guide to Trading. Please join us in our Telegram Trading Channel if you have any questions as there are a lot of excellent makers out there who love answering questions and helping new users out and check out our Official YouTube channel with some excellent videos by Ivan the Maker.
Have fun and happy trading from Autonio!