UPDATE HOURLY: Market Maker Profits!

View this page in it’s original form on jare.cloud. Also, if the chart didn’t embed from my Google Sheets doc, make sure to click this link in this first paragraph so you can see the actual results – as they’re updated every hour! If you are on the jare.cloud site, bookmark this page so you can view the action again!

Check out this action on BTC-PERPETUAL on Deribit. This market maker is making many individual trades within a fraction of a second and creating a steady, predictable stream of revenues from high-frequency trading in a way that humans simply would not be able to replicate.

What’s it like to trade $1 million dollars USD in less than a few hours? Read my first-hand account, using less than $300 equity, here! A side effect of being Chief Liquidity Officer for Coindex Labs (or maybe even the intended effect) is that I get to throw around a lot of liquidity. For fun and profit!

Market makers take advantage of tiny incremental gains on the difference in bid and ask price, buying low and selling high. On futures markets like BitMEX, Deribit, and many others, they can also gain a tiny fraction of the trade’s value if they’re the maker of the trade – meaning they add liquidity to the market rather than take from it. When you’re posting an order to the orderbook and it’s not immediately bought or sold, but rather someone else has to buy or sell against it in order to take it off the books, you’re a maker!

Red and blue are the % unrealized delta (or the % change,in a profit/loss sense) from BTC and USD. The yellow line is the % change in BTCUSD price, for comparison. This will tell us how well our trading is doing against buying and holding BTC.

In the future, my dayjob at Coindex Labs will further optimize this market maker. We’ll ensure that each input variable is updated in realtime, reacting to market conditions in ways that humans can’t even possibly conceive – applying a novel search algorithm to finding the ultimate combinations of settings. This neuro evolutionary artificial intelligence will have an unbeatable and unique edge over a given crypto or traditional market.

Later, we’ll introduce new and novel ways to arbitrage against markets for like assets on the same exchange or among exchanges – creating a unique price index for BTC, for example, that we can use to effect a cash & carry arbitrage model on assets and instruments we were going to hold anyhow. The price discrepancies among exchanges create yet another way to achieve predictable income streams – if you have an apple you bought where they cost $2 out of town, and in town people are willing to buy 100s of apples at once for $5, aren’t you winning?

Read more about the neuro evolutionary AI and applying it as a money-making machine here. After we’re done printing money from thin air, we’re going to apply this revolutionary concept in overfitting resilient artificial intelligence to all sorts of problems we face as people and societies. The countdown is on!

What’s next is a whole heck of a lot of growth for equity and accounts! It’s a fun and intense ride building out these protocols and this software. Moreover, our value proposition grows every day! Our AI, while collecting all this data, can even spit out different scenarios in a market via API for people to consume on a mass level – like ‘show me the 5% drops in BTCUSD in a day over the last year.’ For fun and profit!