My crypto trading algorithm made a profit by detecting and trading a new stablecoin listing on Binance within 0.1 seconds

It's been over a month now since I initially shared with you a tool that I had made in order to quickly buy into a new coin listing to take advantage of the initial surge in the price.

Testing this algorithm out has been a real pain since I had to wait for a new coin to be listed each time, and only find that the script breaks or underperforms. But after all this trial and error I finally did it!

Before I go explaining how the tool works as well as its performance, let me explain why I think that this particular strategy has some potential:

As some of you may have noticed, many coins seem to go through to what I would like to call a "lightning-pump" during their first few seconds of being listed on an exchange.

Have a look at ICP

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https://preview.redd.it/ggmdzaatbvm71.png?2650&format=png&auto=webp&s=5a7fa3fa9b9bd3a62c171512c8f4bc2508f00147

In under a minute, the price of ICP shot up over 10 times, before slowly dipping into the void. Manually trading this 10x would be impossible, due to the speed required to catch this pump.

So I decided I want to take advantage of this lightning pump by buying at the listing price and selling at the peak. I built a bot that would detect a new coin listing within 20 seconds, and improved it until it reached a speed of 0.1 seconds to place a trade from the moment a new coin is listed.

Though even with this speed, it would pretty much buy at the top and sell a few % later. This is when I had the idea to reverse the orders. If we're catching a coin at its peak that doesn't mean we can't make a good profit with the tool.

So I decided to configure the bot to place margin sell orders instead - and lo and behold it's now actually making a profit on new coin listings by placing sell orders and then quickly closing the position - all in under 1 second.

What's mindblowing here is that it made 11% profit on a stablecoin listing. I didn't see this one coming I admit. It placed a sell order on USDP at 1.18 and old it at 1.05, go figure. There's still room for improvement but I'm very happy that for now it seems to be profitable. USDP chart below for reference.

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https://preview.redd.it/ebqnlt9vbvm71.png?2343&format=png&auto=webp&s=3fe967c7561f4986728fc1223c19b9f8f56b9123

I'll keep running it and see how it performs on regular coins, and report back with more results.

For anyone interested in trying it out, I've included a test mode that will simulate placing orders so there's no risk involved.

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For those of you who asked for a youtube video explaining everything in more detail: https://youtu.be/h5xVXotTeE8

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Here's a step by step guide on how to build it as well as an in-depth anatomy of the code:

https://www.cryptomaton.org/2021/08/15/coding-a-binance-trading-bot-that-detects-new-coins-the-moment-they-are-listed/

For the GitHub source code please go here:

https://github.com/CyberPunkMetalHead/binance-trading-bot-new-coins

If you have any ideas on how to improve the stability or the speed of the code, please feel free to submit a PR.