Updated: Feb 28, 2022
In November 2017, the crypto exchange company Bittrex sent its users an email stating different policy changes for placing orders on their platform. They claim to provide more fair and efficient price discovery, all to improve the overall trading experience.
To do this, they decided to remove stale orders, raise the minimum trade sizes and create minimum trading tick sizes. Regarding the removal of stale orders, Bittrex removes orders that are older than 28 days. The exchange mentions that many of these orders have no reasonable expectation of being completed and it clogs the order books.
Bittrex email sent to users.
This decision from Bittrex does not make life easier for crypto traders. Eliminating a buy or sell order in the system after 28 days may give you a headache, especially when you are doing this process many times, seeking to find the price you are willing to go for.
With the removal of these stale orders, Davinci Codes has developed an app called BitFresh. The app allows you to link your user account from Bittrex exchange and refresh all your placed orders without having to go back and make new ones yourself.
BitFresh is completely free and can be downloaded on Github. If you want to support the BitFresh project, you can leave a Bitcoin donation. To get started, you must log in to Bittrex and generate an API key and secret key. This will allow you to link both the exchange and BitFresh. The user can set up the frequency in which the orders will be refreshed. You can also set up how often the application requests new information from the Bittrex server. BitFresh can work 24/7 on any internet-connected computer or be launched manually once a month to update your orders.
BitFresh user view
Bittrex states: “A general statement about market manipulation tactics: Bittrex actively discourages any type of market manipulation, including pump groups. Consistent with our terms of service, we will suspend and close any accounts engaging in this type of activity and notify the appropriate authorities.” - This statement gives me the feeling that the removal of stale orders is linked to market manipulation. However, it is not very clear because at the beginning of the statement the exchange assures that stale orders clog the order books, therefore alluding that their system can’t take so many of these orders.
According to Investopedia: “The buy-and-hold strategy employs a mentality that suggests price movements over the long term will outweigh the price movements in the short term and, as such, short-term movements should be ignored. Active traders, on the other hand, believe that short-term movements and capturing the market trend are where the profits are made. There are various methods used to accomplish an active trading strategy, each with appropriate market environments and risks inherent in the strategy.”
A known strategy: “Some actually consider position trading to be a buy-and-hold strategy and not active trading. However, position trading, when done by an advanced trader, can be a form of active trading. Position trading uses longer-term charts – anywhere from daily to monthly – in combination with other methods to determine the trend of the current market direction. This type of trade may last for several days to several weeks and sometimes longer, depending on the trend.”
Bittrex is an exchange, therefore, it will deal with crypto traders that have certain strategies to gain profit, such as putting many buy or sell orders in different crypto exchanges. I believe Bittrex should have solved their problem by adjusting their system with these trading tendencies. Just taking away a trading strategy, like the removal of stale orders, feels very convenient for the exchange and not for its users. BitFresh gives you the possibility to go back to your regular trading tactics without having to be aware to refresh them constantly.
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