TWAP Bot is an automated crypto trading tool that uses a conventional algorithmic method that is very simple to use. It is also known as the Time Weighted Average Price (TWAP) algorithm. It is preferred by users who want lower transaction costs without impacting the efficiency of the transaction.
About TWAP Bot
TWAP Bot uses a simple algorithmic trading approach. It provides a low average price for transactions and reduces the impact of the transaction on the market simultaneously. The main objective of the bot is to reduce the cost of transactions.
TWAP Bot crypto trading bot: how does it work?
This crypto bot is used generally in situations where there is high-volume trading involved. It works by splitting up a big order into smaller parts over time. This helps to stop the impact of the trade on the market. It also reduces slippage during buying or selling of the order. The bot also helps to sustain steady liquidity.
How to set up TWAP Bot?
Here are the steps to follow to set up this crypto bot:
- Visit the Pionex website and choose the TWAP bot from the trading tools list.
- Input the order period and ‘buy/sell quote each time’ limits.
- The bot is now ready for use.
Key takeaways
Some of the key features of this platform are:
- The order period is the total time needed to complete TWAP.
- The platform provides 4 order periods namely 10 seconds, 30 seconds, 1 minute, and 5 minutes.
- Besides the order period, other limits found in the bot include total investment, progress, the average price for buy/sell, coins bought/sold, and transactions.
- A tutorial section is present to help users know about the process.
User interface
The bot is part of the Pionex platform which offers 16 free integrated bots for use. The interface is simple and easy to use with separate sections for trading, market, earn, registration, and support. New users will find the navigation convenient and easy.
Trading strategy behind TWAP Bot
The time-weighted average price method is a simple and direct method. It splits up large orders into equal-sized smaller orders with time delays in between. After the splitting is done, the trades are implemented in order with the provided time delays. The order period and the asset total are the chief values you need to focus on for this bot.
How profitable is TWAP Bot?
As per the vendor, the system ensures transaction costs are limited which increases the returns. However, there are no live performance reports to verify the profitability of the bot.
Safety and security of TWAP Bot
Regular website security methods like data encryption, firewalls, and controls for access authorization are present on the official site. As per the vendor, the Pionex has been safely operating for 1011 days. There is no info on the specific security measures that the bot uses for the transactions which make it difficult to analyze its safety.
Customer support
A live chat window, email, tutorial, community, and an FAQ section are present for support. The official site offers support in multiple languages including English, Spanish, Portuguese, Turkish, Chinese, and more.
Reputation
Pionex company is reputed as one of the biggest Binance brokers and Huobi market makers in the world. It aggregates liquidity from Huobi and Binance near the ticker price. The crypto service is supported by Gaorong Capital, ZhenFund, and Shunwei Capital for over $100,000,000. Further, the company has the Money Services Business license by FinCEN.
Team members
We could not find info on the team members of the company. The official site does not have info on the developers and other members like their experience, expertise, etc.
Exchange compatibility
The bot works mainly on the Binance exchange. There is no further detail on the exchanges it supports.
TWAP Bot pricing: is it worth your money?
As with other bots from Pionex, this crypto bot is free to use. However, a maker fee of 0.055 and a taker fee of 0.05% are charged as transaction fees. The withdrawal fee differs based on the coin or token you want to withdraw.
TWAP Botreview: upsides and downsides
| Upsides | Downsides |
| It is a free bot | Limited info available on the performance |
| Lower transaction fees | Lack of info on security measures |
TWAP Bot review: final remarks
TWAP Bot with its ability to lower transaction fees is a useful tool for institutional investors who trade large volumes. Further, since the strategy of the bot reveals only minimal orders, the signals do not cause much of a change in market price. Thus, there is not much influence on the stability or the prices in the market. For traders who prefer high-frequency trades, this is an ideal choice.
