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Introduction to the GSMG platform
Introduction to the GSMG platform

How does all of this work?

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Written by gsmg-d0d
Updated over a week ago

Hi there, welcome to GSMG!

GSMG offers various crypto trading services.

First, there are advanced trading insights served at insights.gsmg.io. These provide insights, based on the market analyses provided by our systems. More about that in the help section for GSMG insights.

Second, GSMG provides automated trading tooling for the novice as well as advanced crypto trader. This is served at gsmg.io. The remainder of this article will address this latter trading tooling.

The automated trading platform provided by GSMG is designed to serve and assist you in trading no matter your current trading skill level. It's there if you're a beginner and it'll still amaze you in case you're a highly experienced trader.

The GSMG platform runs on a serverless computing system. It is a cloud computing execution model in which Amazon AWS runs the server, and dynamically manages and scales the allocation of machine resources. No need to install software on your own machine, just 1 web portal, that's it. We'll take care of the rest.

The GSMG platform consists of many components of which 2 main components: The Trade Engine (TE) and the Market Analyzer (MA).

The Trade Engine manages buy and sell orders on the exchange. It applies an dynamic auto-adapting strategy to each of your selected markets.

The very first time it runs for one of your selected markets, it will place many (tens or
hundreds) buy orders, taking careful heed of the predictions of the market analyzer.
The total volume of base currency in these buy orders will correspond with the
allocation percentages set by you in your account.

Every +/- 15 minutes the Trade Engine will re-evaluate the placement of the
outstanding orders. On the one hand maintaining the allocation percentage as total
outstanding volume and on the other taking the most current Market Analyzer
predictions into account. It may cancel some orders and/or place new ones.
Also, if any of the buy orders have been filled in the last 15 minutes, it will place a sell
order of the same amount at a higher price (0.01% profit or more with the exchange fees taken into account).

If any sell orders are closed, the profit is calculated in ETH and (operating on the default subscription) 25% of this profit is deducted from the balance in your GSMG fuel account.

Note: If the base currency for a particular market is not ETH, then the conversion rate
at the moment of re-evaluation is used to determine the profit in ETH. This may take
up to 30 minutes after the sell order was actually closed.

The information for the Trading engine to place the orders is provided by the Market
Analyzer which analyzes thousands of different markets within a minute. This is where the magic happens and the ideal entry and exit points are calculated for the TE, based on specific market data and trend analysis.

Currently the Market Analyzer analyzes market data on a range of price datasets
across several intervals using a wide range of technical indicators, it does this for
every data set of every market. This all gets mashed together to finally roll out as a “score”, this score is used to create the orders and decides how they are spread.

Bear in mind that the Market Analyzer relies on internal data only, except for the
market data which is supplied by the exchange it trades on, assuring it can’t be
fooled by feeding it false data.

Aside from the MA and TE there are a few other processes that run the show. A few processes govern the automagic optimization of parameters used in other processes that assist the TE and other side processes. This is mostly done using a variety of machine learning techniques. As the bulk of the orders is re-arranged every 15 minutes by the TE there are other processes to help out on the fly if required. Special orders like stop loss orders are adjusted quickly in order to max out the potential profit. In the background parameter optimization is running to provide provide numbers to the stop loss feature so it knows on which distance to trail the price. If an order trails to close it may take profit too soon, if it's trailing to far profit may be missed out on. Back-test simulations are run continuously to maintain the best parameters for every moment.

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