Topic: Bitcoinica - Advanced Bitcoin Trading Platform - page 14. (Read 51103 times)

Regarding the large spread over price spikes, I'd like to apologize first. At first, the mechanism was designed to minimize the risk for Bitcoinica under extreme market conditions. It turned out to be overly sensitive and caused a problem called "a chain of forced liquidations".

A chain of forced liquidations - When price increases and a few large forced liquidations are being triggered, the system automatically prepares itself for a sudden change in hedging volume and increases the spread based on the market depth. Due to the spread increase, more forced liquidations can be triggered, and it goes on… Last time, when the price spikes to $4.50, our reserve is already depleted which means that we can't hedge at all, and the "ask" price spikes to $4.90 with a chain of forced liquidations.

I have since then introduced a few changes to the system:

- A limit on the pending orders as a factor for the pricing algorithm to reduce sensitivity.
- Redflag "No Reserve" when we are out of reserve. Strictly no buying OR no selling when we're out of reserve.
- Tweaking the algorithm to prevent a chain of forced liquidations without actual trading activity.

The market conditions are more and more harsh everyday. The trading volume is highly concentrated in very short time periods and it's very unpredictable. It's very hard to deal with the market right now.

I hope the changes will improve the system and make trading and profiting on Bitcoinica easier than ever.

Way to go zhou! Good move

I don't like GoDaddy at all. The domain has already been transferred out.

For SSL certificates, I will switch to another vendor soon.

Also, I have removed all the GoDaddy certification logos in the new version.

Hey goat, didn't I see you say earlier that you were using shorts on bitcoinica to hedge against the debt for your mining operation?

Frankly speaking, their leverage trading system is only game in town right now. My long position in Bitcoinica is more profitable then my 7G+ mining operation . But their exchange system is another story, it is OK as long as you don't convert more than 49BTCs per conversion.

Me2. I'm finding it quite difficult to make a profit on Bitcoinica even when correctly predicting 20%+ movement on Mt. Gox, but predict wrong and one swallows the full force of the change plus some.

Same thing happened when I converted USD to BTC three weeks ago. It is a bug of Bicoinica exchange system. Below was my post to their help desk on 8 December -
Reply from their staff Jon
No further reply after this

I do not withdraw my petition, though I will not hold it against Bitcoinica in any way. I would still appreciate if Bitcoinica withdraws financial support of GoDaddy.

Although I still do not like go daddy, they have apparently withdrawn support of SOPA. So, I suppose they are back in "Hated, but tolerated" camp as far as I am concerned.

I withdraw my petition.

+1

I strongly support the boycott of GoDaddy. Zhou, I enjoy the services that you offer and hope you do switch away from GoDaddy. I intend to boycott all sites that support SOPA including sites that support GoDaddy. This political issue is more important to me than trading on leverage. I think many of your customers will agree.

Zhoutong,

I'd like to publicly petition you to stop doing business with GoDaddy. GoDaddy has come out in support of SOPA. SOPA is not good for many reasons. Not the least of which is that Bitcoinica could easily be one of the sites that would be censored by it.

Please take my petition into consideration. Please ask the community about the issue. Please ask for assistance in understanding any issue involved in this decision if there is any doubt.

Hi,

I have fixed the trailing stop error. Now it's trailing again.

Thank you for your feedback. Each of you will get 1 BTC bonus. (Both, please give me either your Bitcoinica account or a Bitcoin address so that I can send money to you.)

There is, but I haven't configured it.

I don't use NameCoin personally.

Is there a bitcoinica.bit?

'offshoregenius77' hitting zhoutong pretty hard (or trying to) in the first seconds of round #1.  Who's little sock puppet are you OSG77?  Sounds like a fun topic for a poll.

it's not down for me (as of now anyway)

This is not a good sign....... Site down.

They are called derivatives. I think the young man has a great plan. My hope is HE is actually hedging, because what he really is doing is legal bookmaking...And bookies do go BUST if they dont watch it! Too much action on one side.....

Thats not very nice.......

I will check the code and see if everything is right. Perhaps I broke something since the last minor update. I apologize in advance!