ETH Flash Crash And The Great Trading By One Of Our Quantitative Trading Systems

in #ethereum7 years ago

ETH-20170621-1min.png

Now, this is an unusual chart. Unlike the usual daily ETH charts on my other posts, this one is a 1-min chart for this afternoon. ETH crashed from a little above $300 to $13. It was fully recovered within 3 minutes. This flash crash is almost predicted by my friend @steveo yesterday.

What is exciting about this one is that while the whole drop took much less than a minute, but the full recovery was relatively slow, around 90 seconds. These gave our quantitative trading (Quant) program plenty of time to catch both the downside and the subsequent upside. The real money was made 5 minutes later, after the first flash crash when it momentarily dropped to be under $150. The program was almost anticipated it and was waiting for the quick drop... What a great trading day!

This is the first flash crash we've traded on ETH. Unlike other mature markets (stocks, bonds, index and commodity futures), there were few other institutional quant traders operating the similar way that we were doing. This gives us a relative edge, for the time being.

As of this writing, ETH trading on Coinbase remains halted. As always, we view any drop on ETH or BTC as temporary, just another trading opportunity.

Stay safe!

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Who sells their coins for so little?

Don't really know who and what caused it. Our program caught has no long or short bias. We just reacted to the big moves like that and tried to be on the right side of the market.

It could be someone's program went wrong that triggered such an event.

So, did you or your program manage to buy coins from that price? If so, someone sold their coins for that low.

No. we didn't get at $13. We aim to get a good chunk of the move, never the top or the bottom.

Yes, someone did sell at that price.

I see. Thanks.

The ones who sold at the low, most likely bought back along the way on the recovery bounce the next minute, if they're programmed trading. It's a loss, but not really very bad. Manual traders are out of luck.

The important thing is, don't get your stop orders triggered in a panic free fall!