Categories
Programming

Liquidity Provider Bot

While I was working at qTrade in 2019, I created a Python bot to generate liquidity in specific markets.

The bot polls data from a target arbitrage exchange, and then creates buy and sell limits on the qTrade exchange at specific intervals around that market’s ask and bid prices.  When the bot’s inventory becomes unbalanced, which is inevitable, funds can be withdrawn and arbitraged while the bot is still running.

The bot made a small profit over the few months it ran while I worked at qTrade, and had a significantly positive effect on the liquidity of the markets it operated on.

The bot’s code is open source.  Feel free to run your own LP bot, or use the code as a template!

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