...chained orders...
I have been experimenting with JJG (and jbrher)s chained order strategy on the BTC/ETH pair.
Perhaps I am being dense...but I am just not getting it.
It goes down, I am buying ETH every 0.001, ok fine, then it goes back up and I am selling ETH at the exact same prices...it looks like a total wash to me.
Did I miss something in the explanation?
Example: you have orders each 500$.
Sell at 8500 on the way up, but remove "buy at 8500 on the way down". Next you'll buy will be at $8000.
Same for the opposite direction, buy at $8000 on the way down, remove "sell at $8000 on the way up".
That's why you have a gap between your top buy and your bottom sell that is 2x your base interval. The gap is where the profit is made.
Admittedly, in my most comprehensive explanation, I explicitly left the reason for such 'as an exercise for the reader'. Perhaps I should have stated it.