TWAP Bot Crypto Bot Review

May 6, 2022 08:22 AM ET
TWAP Bot Crypto Bot Review

TWAP Bot from Pionex is a simple but effective software that uses the time-weighted average price algorithm. It is one of the free bots of the platform promising successful returns at a low transaction cost. Traders prefer using this approach for high-volume products as the algorithm splits big orders into smaller parts that do not impact the market in a big way.

What is TWAP Bot?

Time Weighted Average Price (TWAP) bot uses a strategy of executing a big order in the form of many small orders over a particular period. Its main objective is to provide a lower average transaction price. It minimizes the impact of the transaction on the market which helps in reducing the cost of transaction.

How does TWAP Bot work?

The bot strategy is made of sophisticated methods of buying and selling instead of executing multiple single orders. Instead of depositing a huge amount of crypto in a single order which can influence the market, the bot uses multiple orders of smaller volume to provide minimal market impact.

Who is the founder of TWAP Bot?

Pionex team info on the official site.

Pionex team members include Dave Yen, Josey Wyatt, Larry Toh, Daniel Seng-Cheng YEO, and many more. The company is based in Singapore and has an MSB license from the US FinCEN. As per the team and background info on the official site, Larry Toh is the chief compliance officer with experience in working in different Asian jurisdictions. He excels in regulatory and legal product authorization, licensing, and legal entity structuring. 

TWAP Bot features

Some of the key features of the bot as per the vendor are:

  • The bot splits orders into smaller parts of equal volume with time delays between the orders.

  • Orders are executed in sequence using the time delays between the orders.

  • Order period and total investment are two major input parameters.

  • Time for the orders is of five different types namely H1, H6, H12, 1 Day, and 7 Days.

  • An order is placed every 10 minutes by the bot.

  • Only minimum order quantities are disclosed to prevent the influence of the TWAP bot on market volatility and eliminating the effect on market stability and price.

Deposit requirements

The deposit amount varies based on the coin or token you use for the trading. For BTC the minimum deposit is 0.00001 BTC and it is 0.001 ETH for Ethereum.

TWAP Bot fees

A maker fee of 0.05% and a taker fee of 0.05% are the transaction fees you need to pay for using the bot. 

Withdrawal process with Twap Bot

The minimum amount you can withdraw is based on the coin or token present. As with the deposit, the withdrawal is also based on the type of token or coin involved.  If you want to withdraw BTC, the minimum amount you can take is 0.001 BTC and the platform charges 0.0005 BTC.

How to start with TWAP Bot?

Using the bot on Pionex is simple and easy. Here are the steps involved:

  1. Visit the official site and choose the bot from the list present

  2. Input the values for the two key parameters namely order period and the total investment

  3. The bot will place orders every 10 minutes based on your settings every 10 minutes

TWAP Bot pricing

 The platform does not charge subscription fees for using the service. Other than the maker fee, taker fee, and withdrawal fee, there are no other hidden charges present.

How beginner-friendly is TWAP Bot?

Beginners will find that the bot is easy to use. The user-friendly navigation of the Pionex site enables new users to choose the bot, set the parameters, and profit from the trading.

Is TWAP Bot safe and legit?

The company has received the MSB license from the United States FinCEN. The vendor ensures the safety and security of the platform via various measures including encryption, firewalls, access controls, and two-factor authentication.

Customer service

User reviews for Pionex on the Trustpilot site.

Unfortunately, we could not find user reviews for the bot on reputed sites like Trustpilot. However, we found 274 reviews for the company on the Trustpilot site with a rating of 4.2/5.  As per the feedback, users are happy with the quality bots, support, and the consistent results

Who is TWAP Bot best for?

Traders dealing in high-volume trading will find the bot ideal as it will help prevent undue influence on the market price. In general, the bot is best used in a rising market and when there is high liquidity.

TWAP Bot review: pros and cons

Pros

Cons

  • Free bot
  • Not for low-frequency trading
  • Ideal for high volume trading
  • Considerable risk is present when applied over a longer duration
  • Reduced transaction cost
 

TWAP Bot summary

TWAP Bot allows large order execution without influencing market price. Institutional investors with a conservative approach find the bot efficient as it does not bring significant changes in the market. Thus, it ensures stable market conditions and is handy in case of predictable systematic trading.

  • Features - 6/10
  • Ease of use - 6/10
  • Pricing - 10/10
  • Reputation - 7/10
  • Customer support - 7/10
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