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Landing page
Concept
One way is to create a trading bot ourselves, another way is to aggregate information from a huge amount of existing trading bots. Here came an idea about analysing existing trades on derivative markets to predict a price for spot trading.
Progress
So far, we've created a prototype that aggregates data from the PancakeSwap, a decentralized exchange, prediction tool (it is something similar to binary options), computes percentages of bets placed, and forecasts the possible BNB price in the next five minutes. To do so, we use the Binance API to get the live BNB ticker price. Furthermore, from Pancake Swap’s smart contract query, both bearish and bullish bet amounts are possible. We compute percentages of both bet amounts to determine what percentage is bet on each option. The standard deviation of the 5 minute BNB prices for the previous 20 5 minute periods is then calculated. We assume that if the bet weights are 50/50, the price will not change. If it is 75/25, we expect the price to rise by half a standard deviation in the next five minutes. We predict the price for the end of the next 5 minute timeframe every 5 minutes, allowing us to use this information in spot trading.
*DEMO VIDEO AVAILABLE IN "TRY OUT LINKS" *
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