lunc to the doom .
What many traders don't know about crypto tokens and trading and why you may loose all the time .
there are algorithms that can remove liquidity from crypto markets, known as "liquidity removal" or "market making" algorithms. These algorithms are used by some traders and market makers to manage their risk exposure and adjust their positions in response to changing market conditions.
Some common algorithms used for liquidity removal in crypto markets include:
1. *Volume-weighted average price (VWAP) algorithm*: This algorithm aims to remove liquidity at a specific volume-weighted average price.
2. *Time-weighted average price (TWAP) algorithm*: This algorithm removes liquidity at a specific time-weighted average price.
3. *Percent-of-volume (POV) algorithm*: This algorithm removes liquidity based on a percentage of the total trading volume.
4. *Liquidity-sensing algorithm*: This algorithm uses machine learning to detect and remove liquidity when the market is most vulnerable.
5. *Market-making algorithm*: This algorithm adjusts bids and asks to manage risk and remove liquidity.
These algorithms can be used to:
- Manage risk exposure
- Adjust positions
- Influence market prices
- Profit from market making
However, it's important to note that liquidity removal algorithms can also contribute to market volatility and flash crashes, so their use should be carefully considered and monitored.
so in simple terms , bots make sure the prices and liquidity remains where they have been preset .
If there was no programmed bots, you would have become an instant millionaire, through the continuous volume of trade and new money added to the crypto market cap .
If you profit , it's because the bots aimed at a bigger liquidity absorbtion thereby allowing the charts in the direction of the intended profit for the exchanges .
your wins are actually insignificant to the intended profit .
