Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Sign in to follow this  
TopAlgo

Robbin Da Hood, Making too much money and not getting banned.

Recommended Posts

Wrote a algo bot based on OP’s concept in this post where he made 20k+ before getting banned by Robinhood.

/r/wallstreetbets/comments/j0giqu/robinhood_banned_me_for_making_too_much_money

Basically OP just used a click bot/ keystroke script on a android emulator with the Robinhood app to submit a buy order 1 cent above the bid, canceling 100ms later if not filled and repeat till filled, once filled immediately do the same on the ask to exit. Makes you best bid and ask always without updating the NBBO.

Made a bot to do exactly the same as OP in the other post, except instead of a click bot I used Robinhood’s internal API + python script configured for speed. Making it faster and easier than OP’s to use. Also has code to limit it to 390 or less orders per day to keep it from triggering professional status with Robinhood.

https://imgur.com/a/uv6yNoL

Example: VXX call option, lets say the bid/ask is .16 X .21

The bot would flash a buy order at .17 every 100ms, once filled it flashes a sell order every 100ms at .20. You are providing a better price/ liquidity without the NBBO updating and paying zero commission for it.

I normally trade with Schwab, but opened an account with Robinhood just to run this bot. Used the profit from their free stock to test it out on VXX options.

Only thing you really have to lookout for is volume traded on the option. Wana go for options like VXX, GOOG, AMZN and others where the spread is wider and have volume, OP does the same with his bot.

Why this works:

A couple reasons why, first off because of zero commission, you keep all the money you make off the spread.

Second, this type of algorithmic trading is called market making or more generally providing liquidity. In principle, the apparently free money is compensation for helping the markets to be liquid. The more people do this, the tighter the spread will be and the greater liquidity will be available on each side.

https://imgur.com/a/S6O8h6d

tldr: Robbin the Hood, making money at Robinhood's expense with a bot and not getting banned.

Currently using it, will post future updates.

Download link : https://app.simplegoods.co/i/PRWTMIQP

Its 3 python source files and a readme, All you need it python 3.9 installed and a Robinhood acc

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.