Blackbird

[Fenryll]

Hi,

one month I am into crypto and 2 weeks assessing bots (gekko is the best one, congrats!):

My 2 cents about blackbird: the "market neutral" strategy is interesting, but it requires Exchanges allowing and exposing API to short, this is why I didn't have one running now.
But in a few words, it requires two exchanges, with arbitrage opportunities.

Simple explanation (even if "shorting" is counter intuitive for me)

You start with two exchanges, scanning for Coin X
Exchange A: 1000$
Exchange B: 1000$

Then you catch a difference, Coin X is valued 1000$ on Exchange A and 800$ on Exchange B -> arbitrage opportunity as Coin X is overvalued on A and undervalued on B

Exchange A: 

• short Coin X @1000$
  
• Temporary / blocked balance 2000$
  

Exchange B:

• buy Coin X @800$
  
• New balance 200$
  

Then A & B markets for Coin X align again @900$

Exchange A: 

• Pay for the short 900$
  
• New balance: 1100$
  

Exchange B:

• Sell Coin X @900$
  
• Balance 1100$
  

200$ profit... in theory, and also, it is market neutral as the long and short are covering each others.. fees for 4 operations are to be taken into account too..