Adding Liquidity and Configuring the Bot

Before you start, it is important to add liquidity to your market making account (step 1). Once your bot is connected to your account, the liquidity on that account will be used to place orders on both the buy and sell side of your chosen orderbook market:

Market and price logic

1. Add enough liquidity for both buy and sell side (in this example below, we will use $2,000 USDT and similar amount in BTC)

2. Select Trading Pairs:

   

• Find the orderbook market you'd like the bot to work on.

• In this example we've selected BTC/USD, but this could be your own custom market with your custom token. (You'd need at least a Crypto Pro plan to list a new custom tokens and market). Click 'Next >' at the top of the screen.

• Select a 'Reference Price', which is basically a way for your bot to copy a price of another coin. In this example BTC/USDT, we want the price to follow itself (BTC/USDT), however your bot could follow a different market dynamic, especially if it is a new coin.

• Weight is useful if you'd like to blend different prices (BTC/USDT and BTC/USDC for example) to create a more stable price by mixing a collection of markets prices, or volatile by adding certain altcoin prices.

Bot settings

1. Configure Strategy Parameters:

• Set orderbook spread, order size, and other rules.

• Define maximum asset allocation for each trading pair. (This will require your account on your exchange to have funds in it. Preferable 50% of funds to cover sells and the other 50% for buys). In this example we will be using about $2,000 USDT and the equivalent BTC amount.

  

1. Start Your Bot

• Check that the settings are correct and hit 'Start the bot >' top of screen.

• OctoBot will begin placing and managing orders according to your configuration.