Krypto-trading-bot: Coinbase Pro Trading Activity Query

[rscott7]

Hi there,

First off I want to say thank you for the work you have done and are continuing to do on the trading bot.

I've been using the bot solidly for a few months now, and I have just received an email from Coinbase querying my trading activity on Coinbase Pro - . I've quoted the email below..

Basically they want to know why there's such a high number of cancelled orders, with a ratio of cancelled to placed orders at 99.94%. The bot is successfully trading, I don't think my parameters are unusual. It seems to be working as intended though I have to admit I'm unclear if such a high number of cancelled orders is expected.

Does anyone have any insight into this, if there is potentially an issue? In any case thought it useful to notify that Coinbase are querying high frequency trading.

Cheers,

Richard

The email is as:

This message is being sent to you in regard to trading activity on your Coinbase Pro account.

Coinbase has observed, an unusually large number of order cancels, and a high order cancels to orders placed ratio.

For the month of January, your order cancels to order placed ratio is approximately { 99.94 }%. Could you kindly check your trading systems and provide us with some background details about this activity? Can you confirm that there is no flaw with your trading algorithms, strategy, or models? We would like to better understand the driving factors behind this market behaviour.

As per Section 2.22 of our Trading Rules, Coinbase Market Operations has the authority to take any action(s) deemed appropriate to preserve and ensure market integrity, and which are in the best interest of the Exchange.

We look forward to your response to the questions noted above.

Regards,

Coinbase

[ctubio]

morning rscott7'''
we (all users of this bots) have been using this algorithms since more than 3 years ago, so is not something new that we started to do recently.

What recently happened that never happened before is the email of coinbase that you pasted; i had never received one and i dont know any other user that received one (but maybe we all now start receiving it xD).

This bot places and cancels orders nonstop, so the rate of 99% is expected and has been this way since 0day.

In case you wanna kindly answer coinbase, you can point them to this bot at https://github.com/ctubio/Krypto-trading-bot and to the original bot at https://github.com/michaelgrosner/tribeca (or also to this issue at https://github.com/ctubio/Krypto-trading-bot/issues/884), so they can see that you are not the only one doing this trading activity cos there are many ppl using this bots (and also that January is not the first month that this happened cos we all are using this since years ago, and also that there are no flaws in our algorithms cos the code does what we intended to do as seen in all the closed issues/pull request).

About the rules, would be nice to know if are for all users the same, or are just arbitrarily applied at their convenience to different users at diferent times; because i can tell you that you did nothing different than all users here did also nonstop everyday; not sure how many bots you have, but here there are ppl with dozen bots; so this msg to you seems arbitrary

:koala: note that using the argument --lifetime forces the bot to not cancel orders anytime, and instead keep them opened for as long as especified (this could be hardcoded for coinbase exchange bots to avoid to coinbase to start now spamming everybody; if this rule is for everybody)

:koala: sorry for the long text, hope this helps''' (at least to move forward to next step looking to know what exactly means usual and unusual [so to help to tweak the bot in the best interest of the Exchange])

[ctubio]

allow me to close the issue cos no code modifications for now; feel free to add any comment anyway (we can reopen anytime and do the mods if any)

many many thanks for sharing all this info'''' is good to start knowing about'¡

[ctubio]

:koala: since not everybody likes to fix issues, if you would like to forget about coinbase and move to another exchange just joint the IRC channel and we can switch the lock to the new apikey of your desire eaSy

[rscott7]

thanks Carles,

I'm happy for this to be closed. I've responded to Coinbase, and I'll just now wait to see what further they have to say.

Also, cool on the key - good to know 👍