10 cents is a big spread? How frequently are you trading?
10 cents spread on a 5$ price _is_ a big spread. Just saying
Topic: Bitcoinica sucks a lot worse than it used to (Read 1589 times)
10 cents spread on a 5$ price _is_ a big spread. Just saying
10 cents is a big spread? How frequently are you trading?
10 cents spread on a 5$ price _is_ a big spread. Just saying
Even worse when you try to catch the spikes, and the spread suddenly jumps to 20 or 30 cents. I'm better at intuitively catching the spikes closer to the moment, rather than predicting them ahead of time. I suppose I should attempt a bot, but I don't think I have the capital to trial-and-error an algorithm.
The spread doesn't really matter if you think you are buying at the right price. You're not going to sell it right away anyway.
When there's a upward spike, usually the bid will remain at the bottom until the depth has been established by bots at Mt. Gox. The ask will rise to the actual trading price immediately. If you are catching the spike, you can buy at the actual trading price. Even though you may suffer from a larger temporary unrealized loss, it's fine after the spike has settled.
We don't just take the trading price and add a spread onto it, we actually calculate both buying and selling prices using the same algorithm independently. So the spread doesn't really matter. It just reflects the actual depth.
I'm glad to see that sense is finally emerging on the issue of bitcoinica!
75K btc traded on bitcoinica in the past 24 hours, with several 100K days in the past couple weeks. what is this sense which you speak of?
I think this is another "any publicity is good publicity" scenario.
The Bitcoinica tagline may not be right, Bitcoinica may not be for anyone. But anyway we still have attracted a lot of attention from the right people.
10 cents is a big spread? How frequently are you trading?
10 cents spread on a 5$ price _is_ a big spread. Just saying
Even worse when you try to catch the spikes, and the spread suddenly jumps to 20 or 30 cents. I'm better at intuitively catching the spikes closer to the moment, rather than predicting them ahead of time. I suppose I should attempt a bot, but I don't think I have the capital to trial-and-error an algorithm.
I'm glad to see that sense is finally emerging on the issue of bitcoinica!
75K btc traded on bitcoinica in the past 24 hours, with several 100K days in the past couple weeks. what is this sense which you speak of?
If you are trading small amounts (<50 BTC), certainly. Gox's spread for 50BTC of liquidity is about 4 cents right now, plus 0.65% on both sides is ~6 cents (4.88 x 1.3%). Seems like the spread is almost the same at these levels.
Did I get my math wrong?
Did I get my math wrong?
10 cents is a big spread? How frequently are you trading?
10 cents spread on a 5$ price _is_ a big spread. Just saying
10 cents is a big spread? How frequently are you trading?
I'm glad to see that sense is finally emerging on the issue of bitcoinica!
The spreads bothered me until I stopped day trading on Bitcoinica and started swing trading. My trading windows are now about a week long and I'm looking for huge swings in either direction. The spread doesn't matter to me at that point, when I'm well into the green.
+2More profitable, and also provides liquidity at Gox, which is better for the market overall and creates more value for your long coins. At bitcoinica, your "trades" might just be balancing Zhou's buckets, with no corresponding orders at mt gox. I like virtual currencies (obviously), but placing leveraged side bets on the Mt. Gox exchange rate is two steps removed from the bitcoin blockchain, and is a bit too virtual for me.
The spreads bothered me until I stopped day trading on Bitcoinica and started swing trading. My trading windows are now about a week long and I'm looking for huge swings in either direction. The spread doesn't matter to me at that point, when I'm well into the green.
+1
Day trading sucks on Bitcoinica for obvious reasons ^^
The spreads bothered me until I stopped day trading on Bitcoinica and started swing trading. My trading windows are now about a week long and I'm looking for huge swings in either direction. The spread doesn't matter to me at that point, when I'm well into the green.
Isn't this just a function of the order book on Gox?
Right now I see that there is no significant order depth on the bid or ask side between about 4.78 and 4.90 on Gox. So makes sense that the spreads on Bitcoinica would be equally huge.
Right now I see that there is no significant order depth on the bid or ask side between about 4.78 and 4.90 on Gox. So makes sense that the spreads on Bitcoinica would be equally huge.
Not really their fault atm. The spreads at Mtgox are enormous as well, and there's no depth for atleast a 20+ cents range
The spreads have just become so ridiculous. After this position, I'm out. Thanks for some fun and interesting times, Zhou. I wish you the best (which you probably already have).
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