Learn How to Setup and Run the Market Maker Bot on Spot Exchanges.
Discover the basics of providing liquidity to a market, accumulate more coins, and profit in the process with the spot market maker strategy!
I use this strategy on Binance and Kucoin, but You can use it on any of the Spot Exchanges Supported by Gunbot.
Gunbot Spot Market Maker Strategy
The core logic of this strategy is to take advantage of a staggering orders method.
Good news! You won’t get rekt cause you don’t have to worry about been liquidated. This strategy runs profitably on any market condition.
Obviously, nothing is totally market proof, and trading always comes with a risk, so don’t play with your rent money, but you will be able to profit regardless of the market trend, either bullish or bearish.
Read more about Risk Management Strategies to Protect Your Trading Money.
The main idea of this spot market maker strategy is to add various orders to your chosen market books by covering different price ranges, from the starting point we place to buy and sell orders in increments until we hit the boundaries of our desired range.
Our starting point is the spread, so when we start, we post from ﬁrst positions of the order books, then as long as we proceed, our middle price will become our break-even price.
In that way, we move our staggered orders continuously up and down the order book; any time a buy or a sell order is ﬁlled, we cashout the proﬁts.
You can always adjust Your desired Gain Percentage for this strategy in the “pairs override” section of your config.js or the GUI.
Spot Market Maker Strategy Setup
I highly recommend you to start with just one pair, so please try this with USDT-BTC.
There is a meager chance you can go wrong with those two. At least do this at the beginning until you get a better understanding of how the strategy works.
Configure a basic Gain strategy, use the default settings, or use the one that comes preconfigured in Gunbot.
After selecting the trading pair, head over to the override section and add the following parameters.
“TRADING_LIMIT“: This is your desired amount per trade; make sure it is higher than the minimum volume to sell, and in the case of USDT as base coin, set a round number, for example, use 25 instead of 0.0015, which would be the case only if BTC is the base coin.
“BUY_METHOD“: “Market_Maker,” Nothing to add here, just the Market Maker method used to buy.
“SELL_METHOD“: “Market_Maker,” same here; this is the default parameter to sell with the strategy.
“BUY_ENABLED“: false, this will disable the basic gain strategy buy method and will be replaced by the market maker as you previously set above.
“SELL_ENABLED“: false, same here, leave it as “False” for the selling method.
“MIN_VOLUME_TO_SELL“: 20, set this value lower than your Trading Limit, and make sure it is a bit higher than the exchange minimum trading rules to give you some room in case of fees and price fluctuation.
Also, remember to set a round number in the case of USDT or other fiat coins.
“GAIN“: 0.25, this value is your desired gain percentage; in this example is set to 0.25% gain per trade after fees.
“DOUBLE_CHECK_GAIN“: true, even though this parameter is in the strategy, I would recommend you to add it to the overrides, just in case, anyway, it will do you no harm.
“PERIOD“: 15, again, you can add the time frame here or use the one from the strategy; make sure your exchange supports your chosen period. Also, keep in mind, the spot market maker strategy will place the orders as needed.
“MAX_OPEN_CONTRACTS“: 1, designates how many orders (buy and sell) you want the bot to place at one time, start low with 1 or 2 and adjust later if needed.
When Max Open Contracts had posted enough orders, it will stop and check for the market condition, and it will wait for your orders to be ﬁlled and then will replace your orders with the new needed position in the order book.
“MM_DCA“: true, set to “True” to enable the Market Maker Dolar-Cost Average feature.
“MAX_DCA_ORDERS“: 1, the number here tells the bot how many DCA orders would you want to open, in addition to the Max Open Contracts.
The DCA orders will be placed using your Trading Limit value every time, but it will go out fast with a small spread, Not like the Regular Gunbot DCA Strategy (double-up).
The DCA is based on the “Break-Even” price, so the ﬁrst cycle it fires 1 DCA round, recalculates break-even, then the second cycle fires the second DCA round, and so on.
“DCA_PRICE_SPREAD“: true, set to “True” or “False” to enable or disable this feature.
“DCA_SPREAD“: 1, this is the value expressed in percentage on which you want Gunbot to start averaging down, in the example is set to 1 which means, the bot will start the first DCA round as soon as the price drops 1% from your break-even price.
“DCA_SPREAD_CAP“: 10 indicates how many times you want the DCA cycle to repeat, in the example is set to 10, so it means the bot will average down 10 times once the DCA Spread reaches the 1% drop, and it will continue if it drops another 1%.
Spot Market Maker Strategy Overrides Example on GUI
And that’s all there is to it; now you have your Gunbot Spot Market Maker Strategy ready to go!
These are the main parameters you need to set in your pairs override to use this strategy but remember you can always add a needed parameter, like “IGNORE_TRADES_BEFORE,” or similar for a specific pair.
If you want to learn more about other Market Maker Strategies for Margin or Futures Trading, check out this Gunbot Market Making Strategies Guide.
Please do not copy/paste these settings; the examples’ values are intended to be educational and not trading advice.
Spot Market Maker Strategy Notes
You will need the Initial Capital or your main balance in base coin available at the exchange, but a quote is not required for any desired coin.
The bot will take care of that and show you the info on the grid and in the GUI.
Gunbot also keeps track of your Average Entry Price.
When you have an average entry price (it means some of your buy orders got ﬁlled), the new orders will not get posted following the order book spread, but will get posted at “proﬁt.”
Your Profit is calculated by adding your Average Entry Price + Exchange Fees + Your Pre-defined Gain percentage.
Keep an eye on your orders, remember to set these parameters low, at least until you can see how this spot market maker strategy performs clearly.
The count is MAX_OPEN_CONTRACTS + MAX_DCA_ORDERS + DCA_SPREAD_CAP; in these example settings, the total is 12.
In case you think something is not right with your spot market maker strategy or you would like to read a more detailed report on your console, you can add this parameter in the “bot” section of your config js file.
Spot Market Maker Debug Messages Example
You will get useful info on any issue if there is any, or basically, the bot detailing every piece of information regarding your current trading pairs status, anyway.
You will probably be more interested in checking the GUI charts and keeping track of your trades.
Spot Market Maker Strategy Conclusion
You just learned how to set up a spot market maker strategy. And that means you can now run that strategy in your Gunbot and start making money right now! Therefore, let’s quickly recap what you learned in this easy strategy guide.
5 Easy Steps to Setup the Gunbot Spot Market Maker Strategy for Spot Crypto Trading Exchanges.
Step1 Choose your Exchange (Remember the Partner Exchanges that are Included with Gunbot)
Step 2 Choose your Trading pair (USDT-BTC) Recommended to get the ball rolling.
Step 3 Set up a Basic Gain Strategy (Gunbot Strategy Setup Guide)
Step4 Add the Pair Overrides (Remember, use the parameters but set the values according to your trading style)
Step 5 Fire it up and Profit! No need to Explain that one 🙂
If you haven’t already done so, go ahead and Get Your Gunbot License Now.
Then pat yourself on the back because you’re now all set to start a successful automated crypto trading journey!
Note: Remember that you will need to score a Top10 or better on the Gunthy Ranking System to Unlock the Market Maker Bot.