BitmexMarketMakerBot

It goes without say that this was a project for fun and profits are not expected much less guaranteed.
Also, it should be noted Bitmex does not allow US traders (one of the reasons I no longer use them). This was just a quick project that I put together in a few hours and while it did initially prove to be profitable, the indeterminacy of the cryptocurrency market proved too great for this to work properly.

I did this in early 2018 during the cryptocurrency boom. Looking back on it I see that my code was rather…rudimentary. It still works fairly robustly, as long as it is running from the MarketMakerBot_XBT_always.py file (this file will keep restarting the MarketMakerBot_XBT.py file every time it crashes) as Bitmex tends to crash quite a lot.

How it works

Bitmex refunds a percentage of every buy and sell limit order.

Since you are “making market” by providing liquidity for market orders, Bitmex (and other brokers) provide a percent refund of your initial purchase as a reward for providing said liquidity.

This refund can be “exploited” to earn small profits over many orders. Due to the nature of a limit order, you are buying against the trend of the market (I.E. you can only place buy orders below current price and vice versa for sell orders).

This lends itself to automation as one can set a bot that checks the price periodically (5 seconds in this case) and sets the order one “tick” below the current price for buys and one above for sells.