TWAP Bot applies one of the simplest trading strategies in the crypto market. The bot is one of the listed tools in Pionex and focuses on decreasing the overall cost of trading for users. We decided to analyze this system in detail to find out whether it is a good crypto trading tool to trade with.
What is TWAP Bot?
TWAP bot is an automated trading system that helps users implement the time-weighted average price strategy. So, it automatically reduces the effect of large orders in the market by distributing them into smaller quantities and implementing them at regular intervals.
The main features of the bot are indicated below:
- Trading parameters
The bot has 2 main parameters, “order period” and “buy/sell quote each time” that it uses to make transactions.
- Order periods
You are permitted to work with four different order periods, which include 10 sec, 30 sec, 1 min, and 5 min.
- Exchange support
Pionex is the main exchange the bot is allowed to trade on.
TWAP Bot: background
TWAP has Pionex as the vendor. Since there are no details about this company in the sales pitch, we decided to check its LinkedIn profile. As you can see in the screenshot below, the company is registered in Singapore, but its main headquarters are in Princeton, NJ. Some of the team members include Piter M. Mota, Omar Ramos, Jack Tsai, and others.
How does it work?
The bot works by reducing the average transaction price. It divides big orders into smaller orders, enabling it to implement trades evenly within seconds or a few minutes, depending on the settings. As a result, the system is able to decrease the cost of transactions.
How to sign up with TWAP Bot
Follow the few steps listed below to start using the bot:
- Open the Pionex website
- Find TWAP from the list of trading tools situated on the right side of the page
- Configure the settings as directed and begin trading
Does TWAP Bot offer a demo account?
No, a demo account is not on offer.
Profitability of TWAP Bot
With no performance reports in the presentation, we cannot tell for certain if this system is profitable. You may actually have to use the bot to find out for yourself.
Payments, deposits, and withdrawals
Any deposits and withdrawals can be done through the Pionex exchange. The minimum deposit amount is not indicated. You are the one to decide the deposit you want the bot to trade with every time.
TWAP has Pionex as the only supported exchange.
What about customer support?
You can get customer support through email, live chat (on the official Pionex website), FAQs, blog articles, Telegram, and Discord, among others.
Benefits of using TWAP Bot
- Is simple to use
- Supports high-frequency trading
Drawbacks of using TWAP Bot
- Vulnerable to flash crashes
The bot is available for zero dollars. You only need to open an account with Pionex and access the tool free of charge.
What are security measures?
The vendor doesn’t disclose what measures they have put in place to secure your bot. However, the system uses API keys and is hence not permitted to withdraw your money. Pionex recommends you apply 2FA to enhance the overall security of your account.
Is TWAP Bot legit?
TWAP Bot is a legit service. As aforementioned, it is one of the many trading tools on Pionex’s list of products. Pionex has a large community of users spread across 100 different countries around the globe. If the service was illegal, then very few or no customers would be using it today.
Ease of use
Using this bot is hassle-free. You simply need to input two parameters, namely “Order Period” and “Buy/Sell quote each time.” Then select the trading pair and one order period (10 sec, 30 sec, 1 min, and 5 min) to implement the TWAP strategy. The bot will then place buy and sell orders automatically.
Is TWAP Bot a good choice for automated trades?
The bot may be advantageous for transacting a big order within a short time period without impacting the market price excessively.
What are the risks of using TWAP Bot?
This bot may carry out very few trades when liquidity is present and trade excessively when liquidity reduces during the day.
Some of the benefits you can accrue from this bot are ease of use and high-frequency trading, not to mention it is free. Unfortunately, the algorithm is predisposed to flash crashes. Things can spiral out of control when the markets behave unpredictably, especially in the short-term.