Hosting Trading Strategies Oxido Solutions
1. INTRODUCTION
Oxido Solutions provides fully automated trading solutions for crypto perpetual futures, a financial instrument that allows speculation on cryptocurrency prices with leverage, without requiring ownership of the underlying asset. These solutions are tailored for high-net-worth individuals (HNWIs) and institutional investors, such as hedge funds, family offices, and market makers. With these tools, they aim to generate passive income in the cryptocurrencies USDT, Bitcoin, or Ethereum.
Buy and sell signals are generated by our trading bot software scripts, which are reflected at the front end through executed orders on clients’ accounts on exchanges such as Binance, Bybit, and OKX. A critical yet less visible component operates in the background: hosting. In this blog, we pull back the curtain and shed light on the backbone of our trading operations.
You will learn:
- What hosting is
- How hosting works for Oxido Solutions’ services
- The importance of a reliable hosting environment for executing trading signals
- Which systems are hosted and their roles
- The hosting provider we use and why they were chosen
- Where our servers are located and the reasoning behind these choices
- How our hosting environment is monitored and secured
2. WHAT IS HOSTING?
We begin by explaining what hosting means because it provides the foundational understanding needed to appreciate its critical role in supporting Oxido Solutions’ crypto trading bot services. Hosting is the backbone of today’s online world. It ensures that the systems and services we rely on over the internet operate efficiently, are secure, and can scale as needed. Without hosting, these systems would lack the basis for reliability and accessibility. Let’s explore 5 key elements that make hosting so essential.
A. Servers
Servers are where everything starts. These machines, whether physical or virtual, store and process the data that powers online services. They act as the engine for the applications and tools that businesses rely on daily. Servers can exist in two primary forms:
Physical servers, or on-premises setups, are housed within an organization’s own facilities. These provide full control over how the system is managed but require significant resources for maintenance, upgrades, and troubleshooting.
Cloud servers, on the other hand, operate remotely through a third-party provider. They offer flexibility, making it easy to scale up or down based on the needs of a business. For industries like crypto trading, where demand can shift rapidly, cloud hosting is often the preferred choice.
B. Connectivity
An uninterrupted and fast internet connection is essential for hosting. It ensures that systems can communicate with users and other services without delays or disruptions. In trading, where speed is crucial, even a slight delay can have significant consequences. A reliable connection minimizes downtime, prevents bottlenecks, and keeps services available whenever users need them.
C. Security
Security is a critical part of hosting. It safeguards data and systems from cyber threats, unauthorized access, and accidental issues. Hosting environments are designed to ensure that sensitive information remains protected. Firewalls block unwanted access. Encryption ensures data remains private during transmission. Access controls limit who can make changes or view sensitive areas, reducing the risk of errors or insider threats. For Oxido Solutions, strong security measures are non-negotiable—they’re vital for maintaining trust and protecting sensitive financial data.
D. Scalability
One of hosting’s biggest strengths is its ability to adapt. As businesses grow, their hosting environment must keep pace. This might mean handling an influx of users, increasing data storage, or boosting processing power. Cloud hosting makes these adjustments seamless, allowing resources to expand or contract on demand. For crypto trading platforms, this adaptability is a key feature, enabling them to handle surges in user activity during peak trading times.
E. Management and Maintenance
Even the best hosting setup needs regular care to stay efficient. Software updates fix vulnerabilities and keep systems compatible with new technology. Monitoring helps identify potential problems before they become major issues, ensuring systems stay online and perform well. Backups act as a safety net, protecting data from loss due to unexpected failures or attacks. Consistent upkeep ensures that hosted systems remain reliable, efficient, and ready for whatever comes next.
3. HOW HOSTING WORKS FOR OXIDO SOLUTIONS’ SERVICES
Many of our clients choose our automated trading strategies for their ability to diversify investment portfolios and low correlation with underlying asset performance. Hosting plays a crucial role in supporting these objectives, ensuring that the necessary infrastructure is in place for smooth and reliable operation. At Oxido Solutions, our business revolves around three key types of software, all of which require hosting environments that we manage directly.
A. Trading Alerts
Oxido Solutions offers four types of fully automated trading strategies for crypto perpetual futures:
- BTC Perpetual Futures USDT-Margin
- BTC Perpetual Futures Bitcoin-Margin
- ETH Perpetual Futures USDT-Margin
- ETH Perpetual Futures Ethereum-Margin
The logic behind these trading strategies is programmed into trading alert scripts. These scripts generate crucial instructions for our trading strategies, such as buy and sell entries, stop-loss levels and position sizes. These alert scripts are written in Python, a widely-used programming language ideal for tasks requiring speed, accuracy, and flexibility.
The scripts operate within a hosting environment specifically configured with Python libraries. Python libraries are pre-built collections of code that provide tools for handling specific tasks, such as data analysis, mathematical calculations, or connecting to external systems. By using these libraries, the scripts can perform complex operations efficiently and reliably. This hosting setup ensures that trading alerts are generated quickly and accurately.
B. Alpha Shifter: Middleware for Seamless Communication
Alpha Shifter is Oxido Solutions’ proprietary middleware software, developed in the programming languages HTML/CSS, Python and Javascript. It bridges the gap between our trading alerts software and cryptocurrency exchanges, ensuring smooth and accurate data exchange between those two application types. When Oxido Solutions was launched in 2021, alerts were generated in TradingView. However, due to the limitations of that platform, a custom alert system was developed in Python in 2023 and integrated with Alpha Shifter
Here’s how Alpha Shifter works:
Step 1: Receive
Alpha Shifter begins by receiving trading signals generated by our trading alert scripts. These alerts contain specific instructions, such as:
“a=btcusdtperp, type=long, q=10, o=market”
This alert tells the middleware to buy 10 Bitcoin long contracts using USDT at the current market rate.
Step 2: Process
Once the alert is received, Alpha Shifter processes the information, translating it into a format that meets the exchange’s API specifications. This step ensures that the trading signal is accurate and ready for execution. The middleware’s processing must be fast, robust, and scalable to handle multiple signals simultaneously without delays.
Step 3: Send
Finally, Alpha Shifter transmits the processed signal directly to the customer’s account on the relevant exchange through an API connection. This connection is established using an API key and secret key generated by the customer on their exchange account.
Customers can also configure their API settings to determine whether the signals are automatically converted into orders on the exchange or require manual approval. This flexibility allows users to tailor the trading process to their preferences while ensuring secure and efficient execution.
Why Hosting Matters for Alpha Shifter
Alpha Shifter’s ability to process and send trading signals with precision relies on a strong and reliable hosting setup. Any delays or interruptions in the middleware’s operation could result in missed trading opportunities or execution errors. Hosting provides the essential foundation for ensuring the middleware runs seamlessly, delivering the speed and dependability necessary to send accurate trade signals to the customer’s account.
Additionally, the API and secret keys used to connect with the customer’s exchange account are secured with IP restrictions. This means only signals originating from Alpha Shifter can be processed through the keys, adding an extra layer of security. To further protect sensitive information, these keys are stored in an encrypted format within the hosting environment, ensuring they remain secure from unauthorized access.
By combining robust infrastructure, encryption, and strict access controls, hosting plays a critical role in maintaining the integrity and performance of Alpha Shifter’s trading system.
C. Site24x7: Monitoring the Infrastructure
To ensure the reliability and efficiency of our hosting environments, we rely on Site24x7 Server Monitor Software, a comprehensive cloud-based monitoring tool. This platform continuously tracks the performance, health, and availability of our servers, applications, and IT infrastructure, providing us with real-time insights, alerts, and analytics.
Site24x7 allows us to maintain uninterrupted operations for both our trading scripts and Alpha Shifter. By closely monitoring server activity, resource utilization, and system performance, the software helps us quickly identify and address potential issues before they impact operations.
For example, if server loads approach critical levels or connectivity drops below optimal thresholds, Site24x7 instantly alerts our team. This proactive approach ensures that our trading environments remain stable, with minimal risk of downtime or disruption.
The software also provides detailed analytics, allowing us to analyze trends and optimize our infrastructure for peak efficiency. This ongoing refinement contributes to a seamless, secure, and reliable trading experience for our clients, reinforcing the trust they place in our systems.
In short, Site24x7 is more than just a monitoring tool—it’s a critical component of our operational strategy, safeguarding the integrity of our systems and enabling us to deliver consistent results for our clients.
24×7
4. The Hosting Provider We Use and Why It Was Chosen
At Oxido Solutions, we rely on Amazon Web Services (AWS) as our hosting provider. AWS was chosen for its global infrastructure, scalability, and reliability, making it ideal for our trading strategies. One of the primary reasons we selected AWS is its ability to host servers in locations that are geographically close to major cryptocurrency exchanges, significantly reducing latency. Here’s why AWS is the backbone of our hosting setup:
A. Proximity to Exchanges
Hosting servers near exchange data centers is critical for reducing latency, which directly impacts trading performance. AWS provides us with server locations in strategic regions, such as:
This proximity ensures faster communication between our systems and the exchanges, allowing for quicker execution of trades, improved fill rates, and reduced slippage.
Scalability and Flexibility
AWS allows us to scale our hosting setup effortlessly. Whether we need to accommodate increased trading volume, onboard new clients, or deploy additional trading strategies, AWS makes it easy to add resources like storage or computing power without significant delays.
B. Reliability and Uptime
AWS is known for its robust infrastructure, providing industry-leading uptime and minimal disruptions. This reliability ensures that our trading strategies run continuously, even during periods of high market volatility or server demand.
C. Security
AWS offers advanced security features, including encryption, firewalls, and multi-factor authentication, protecting sensitive client data and trading algorithms. This level of security is essential for maintaining trust and safeguarding against cyber threats.
D. Cost Efficiency
Hosting through AWS allows us to optimize costs by paying only for the resources we use. Additionally, AWS’s efficient server infrastructure has helped us reduce hosting costs compared to traditional on-premises setups.
5. Takeaways
Hosting is the backbone of Oxido Solutions’ trading strategies, playing a critical role in ensuring seamless operations and high performance. Here’s a summary of the key insights discussed:
A. Hosting is Essential for Automated Trading Strategies
Hosting provides the infrastructure necessary for running our automated trading strategies. Without reliable hosting, executing trades efficiently and securely would not be possible.
B. Low Latency is a Competitive Edge
By hosting servers close to major cryptocurrency exchanges, we significantly reduce latency. This proximity improves API call speed, fill rates, and trading performance, directly benefiting client outcomes.
C. A Reliable Provider is Key
Amazon Web Services (AWS) was chosen for its global presence, scalability, and robust security measures. AWS enables us to host servers in strategic locations such as Singapore, Tokyo, and London, ensuring optimal performance.
D. Scalability Supports Growth
AWS’s flexibility allows us to scale our hosting environment as needed, accommodating increased trading volumes and new strategies without disrupting operations.
E. Security Cannot Be Overlooked
Advanced security measures like encryption and multi-factor authentication safeguard sensitive client data and trading algorithms, ensuring trust and compliance.
F. Real-Time Monitoring Ensures Reliability
Tools like Site24x7 allow us to continuously monitor server health and performance, quickly addressing issues to prevent downtime or interruptions.
G. Hosting Enables Seamless Middleware Operation
Our proprietary middleware, Alpha Shifter, relies on a robust hosting setup to process trading signals and communicate with exchanges without delays or errors.
H. Proximity to Exchanges Improves Execution
Strategic server placement reduces the time needed for executing trades, minimizing slippage and ensuring more consistent results for clients.
I. Cost Efficiency Benefits Clients
Hosting through AWS not only improves performance but also keeps operational costs manageable, enabling us to deliver high-quality services at competitive rates.
J. Hosting Drives Client Success
Ultimately, a well-optimized hosting environment enhances the performance of our trading strategies, helping clients achieve their investment goals with greater reliability and efficiency.