Starting your Market Making Bot

To starting a market making bot, you will first need to create an OctoBot Market Making account.

Once authenticated to your account, the first step is to select your exchange.

1. Configuring your exchange

From the Settings page, select the exchange you wish to improve your liquidity on.

You can also select trading pairs that will be added to your Markets overview in order to quickly track their Liquidity score improvement.

2. Entering your exchange API Keys

Next step is to enter the API Key details of the exchange account which is holding your market making funds. This is necessary for OctoBot Market Making to be able to trade on your account.

Please note that Reading and Trading permissions are required to use OctoBot Market Making. Never add other permissions such as transfers or withdrawals.

Your valid credentials will be available to your market making bots.

3. Configure your bot

A. Create a new bot

Once your exchange credentials are valid, proceed to the bots dashboard and start a new bot.

B. Select your exchange

Select the exchange you wish to run your bot on and select your previously entered credentials and click Next.

C. Select your market

Select the trading pair(s) you wish to improve liquidity on and click Next. You can type in the symbol of your coin to quickly find it. Please note that it’s usually better to start with 1 pair.

D. Configure the reference price

Configure the reference price of each pair. The reference price configuration is the way OctoBot Market Making will compute the price it will use as a basis to create its order book from.

There are different ways you can configure a market making reference price:

• Using the same exchange as the exchange you wish to improve liquidity on: In this mode, the market making strategy will use the local exchange current price to create its order book. This option is a good choice if your target exchange is among the best exchanges to find the right price of your trading pair
• Using a different exchange: In this mode, the strategy will create its order book based on another exchange price. This is useful if another exchange usually has a more up-to-date price than your target exchange. When providing liquidity on a liquidity exchange for a trading pair that has equivalents on a more liquid exchange, this mode is the best choice
• Using multiple exchanges: This mode enables you to compute a market making target price based on weighted average prices from multiple exchanges. This is especially useful when no exchange has a significantly better liquidity than others and no obvious choice is available.

The Formula field allows you to force a market price. This is useful if you wish to lock your market price at a pre-configured value.

Once your reference market is selected, click Next.

E. Configure your strategy

OctoBot Market Making features 2 ways to configure your market making orders.

The Overview will automatically create a configuration based on market standards and your liquidity goal. It will also display how much of base and quote currency will be required to execute this strategy using these settings. Please note that those funds are “ideal” amounts to reach higher liquidity, but the bot can run with fewer funds.

Advanced configuration can be edited from the Settings view.

From this view, you can notably configure how many orders should be created on each side, the min and max spread covered by those orders and minimum and maximum base and quote funds to include in the order book.

The budget configuration allows you to limit your asset’s exposure to the market, as the bot won’t include more than the maximum configured amount in its open orders if this amount is set.

Changing your configuration will update the order book preview.

Once satisfied with your configuration, click Next.

F. Review and start your bot

You can now review start your bot.

Once started, your bot will be displayed on your bots dashboard. You will be able to edit its configuration or stop it at will.