How sniper bot executes high profit ratio
submitted 1 month ago by sivassk to cryptocurrency, updated 1 month ago
- Continuous Blockchain Monitoring: Sniper bots constantly scan blockchain networks (like Ethereum, Solana) for new token listings on Decentralized Exchanges (DEXs) or changes in liquidity pools. This involves monitoring smart contract events and network transactions.
- Smart Contract Analysis: When a potential opportunity is detected, the bot analyzes the associated smart contract. This ensures the contract is legitimate and identifies key details like the token address, initial price, and liquidity.
- Optimal Gas Fee Calculation: Crucially, the bot calculates the optimal gas fee. In blockchain networks, "gas" is the fee required to execute a transaction. A higher fee means faster execution. The bot aims to set the lowest possible fee that still ensures the transaction is processed before others.
- Millisecond-Level Buy Order Execution: Speed is paramount. The bot executes a buy order within milliseconds of identifying a profitable opportunity. This often involves directly interacting with the DEX's smart contract.
- Targeting Lowest Possible Price: The bot's primary goal is to buy the token at the lowest possible price. This usually means getting in very early in the token's trading lifecycle, often right after listing.
- Real-time Price and Volume Tracking: After the purchase, the bot continues to track the token's price and trading volume in real-time. This data is used to determine the optimal exit point.
- Automated Sell Order Execution: The bot is programmed with specific profit targets or conditions. When these are met, it automatically executes a sell order to secure the profit. This can involve market orders (for quick selling) or limit orders (to target a specific price).
- Iterative Trading: Sniper bots don't just make one trade. They continuously repeat this process, identifying new opportunities and executing trades to maximize profit potential across multiple assets.
- Algorithm Optimization: To maintain effectiveness, the bot's underlying algorithms and parameters are constantly optimized. This includes fine-tuning gas fee calculations, entry/exit strategies, and risk management protocols based on market conditions and past performance