I am trying to understand how volume-based fee schedules would work with a high frequency trading algorithm.
Let's say I am trading 1 BTC and I am averaging 1000 trades every 5 minutes.
Does the fee schedule apply to the price of the entire bitcoin traded 1000 times in those 5 minutes?
For example, on Binance the Maker/Taker fee schedule for <50 BTC is: 0.1000% / 0.1000%. Does that mean every one of those 1000 trades in those 5 minutes will rack up 0.1% of the price of a bitcoin?
Let's say for one profitable trade, with one BTC buy @ $23737.00, and one BTC sell @ $23751.00, with a presumed profit of $14, would the fee for the buy = $23.737, and the fee for the sell = $23.751, making the total fee for both transactions = $47.488?
If so, how would it ever make sense to trade with an HFT algo? The fees would seem to outweigh any profits an HFT algo could eek out of trading.
Or am I misunderstanding fee schedules completely?