Order Book Scalping Against Repeated Iceberg Market Sells
Summary
The document describes a crypto spot market-making approach inspired by repeated large market sells in STORJ. The author observed frequent sell bursts that pushed the price down briefly before it recovered, and interpreted the pattern as an iceberg execution strategy with substantial slippage. The proposed bot estimates the buy and sell prices from cumulative order book depth, places limit orders near those levels, and cancels and replaces them when the target prices change. It also checks for a minimum spread and available balances before placing orders.
The account reports that the strategy initially earned about 100–200 US dollars per hour, but says the seller later reduced order size and the opportunity passed its best point. These are anecdotal results, not a controlled backtest. The method depends on a persistent, predictable flow, adequate liquidity, low fees, and accurate order handling; changing market conditions can remove the edge or leave the bot holding inventory. The document provides no broader risk analysis or independent performance evidence.
Key ideas
- The strategy places limit orders near cumulative order book depth to intercept repeated market sells.
- It relies on brief price recoveries after sell bursts to earn small spreads through repeated trades.
- A minimum spread threshold and low trading fees are necessary for the proposed approach.
- The reported returns are anecdotal and the opportunity weakened when the seller changed order size.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.