#3 is what I was most worried about, but if precautions can be taken to avoid that I'm in. I'll donate .025 Bitcoin toward purchasing a trade bot for the DNotes community (if anyone else is interested).
I will contribute as well.
No contributions needed whatsoever for it. I just need your ideas on the trading strategy.
Is it possible to program it to bid X% inside each bollinger band? My other suggestion is cues to buy and sell when the price moves X% up or down in a specific timeframe.
I'm not an experienced trader by any means, more of a "cowboy" who got lucky early on, so please disregard if this doesn't make sense.
Good good. Makes perfect sense. I haven't explored the math behind bollinger bands, but I'm positive it's possible, especially if we use more simplified techniques.
Your second one targets market stabilization? And assumes you have an amount of DNotes and Bitcoin available? Which only trades when a swing occurs?
Keep them coming.
Exactly what I was thinking on the second one.
I did some quick research and the outer bollinger bands are 2 "standard deviations" away from the middle bollinger band (which is simply the moving average). Standard deviation is calculated by following these steps:
1. Calculate the average (mean) price for the number of periods or observations.
2. Determine each period's deviation (close less average price).
3. Square each period's deviation.
4. Sum the squared deviations.
5. Divide this sum by the number of observations.
6. The standard deviation is then equal to the square root of that number.
For more information about calculating standard deviation, including examples, visit:
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:standard_deviation_volatilityThank you for that.
The game plan would be to have a small light weight bot for each strategy. You would have a separate exchange account assigned to your bot. This would make it easy to run multiple strategies on multiple accounts.
So far the ideas for bots are (I will elaborate on features and options later):
Hold the Line - Ensures there is always a buy order with a given price range.
Market Stabilizer - Watches the market for swings in price and reacts to it to stabilize the market. (Without trying to hinder market growth*)
Accumulator - Slowly buys and competes at the best market price.
Bollinger Bands - bid X% inside each bollinger band.
Profit Model Accumulator - Buys low and sells higher with the intention of accumulating DNotes through small profit trades.
Feel free to throw out more ideas, strategies, and discuss what we have so far.