The client and the buyback software are different because the buyback wants to push the price while the client wants to stabilize it.
Both versions have the same basic inputs:
Buy liquidity / Sell liquidity in account and in orders
24hour volume weighted nsr price in BTC from bter, polo and cryptsy.
Local order book / within 50% of most recent price.
Both bots will also have a set of tunable parameters. The client bot will have something akin to ‘spread’ or ‘bull/bear’ or other strategic trading parameters. The buyback version will have waves of orders that push the price up. I’d like to talk about that one more in depth.
We want a bot that approaches the current price quickly, hesitates there, then pushes upward against walls. I’m gonna just spitball:
Bot works in 6 hour cycles with small liquidity (can ramp up over time if desired). First hour, place buy order 5% below price feed. Each hour increase price by 1%. If the order makes it through, the ending price is now the first hour’s price for the next cycle. Otherwise, the order must have been filled. In that case, for the next cycle use whatever is less, 5% less than the fill price or 5% less than the price feed.
