Topic: Bot - page 6. (Read 21530 times)
How much to buy in? A lot.
Other people involved are my partner the coder and someone who helps him.
Other people involved are my partner the coder and someone who helps him.
Which means: guess it yourself. your imagination will be able to fill the hole. I have very good excuse to not disclosure anything that matters(privacy of course). I'm so popular on this forum and been paying so high rate of return, you just buy it.
You either want to spread FUD and buy in at a low rate or you are a troll. If you don't trust Goat then don't buy. It is that simple. I find it interesting that people argue so much to make strangers think they are right.
How much to buy in? A lot.
Other people involved are my partner the coder and someone who helps him.
Other people involved are my partner the coder and someone who helps him.
Which means: guess it yourself. your imagination will be able to fill the hole. I have very good excuse to not disclosure anything that matters(privacy of course). I'm so popular on this forum and been paying so high rate of return, you just buy it.
Well performance evidence will only be provided to people who want to buy into the company and not bond holders.
how much to buy into the company?I didnt see any answers to this questions.
Who developed the bot, and what is the developer's trading experience?
Are there any test results for the bot?
Has it run with live funds yet?
Are there any test results for the bot?
Has it run with live funds yet?
one more question who else is in the company? I didnt see it mentioned anywhere in this thread.
Just one question really.
How do account for volume/depth between exchanges?
I.E.
MTGOX 1000 BTC @ 5 USD
EXCHX 10 BTC @ 4 USD
etc...
I can see it on a small scale but not a large scale and not to mention all the competition from all the other bots trying to do the same thing.
How do account for volume/depth between exchanges?
I.E.
MTGOX 1000 BTC @ 5 USD
EXCHX 10 BTC @ 4 USD
etc...
I can see it on a small scale but not a large scale and not to mention all the competition from all the other bots trying to do the same thing.
Also, as other arbitrage bots have seen the ban hammer from exchanges, what assurances do you have that yours will not?
I wasn't aware of that anyone had been banned. Seems kind of strange to ban someone for brining liquidity to your market while paying you fees...I also have not heard of any bots being banned. I did hear that some were disabled because they were inputting the wrong password to log in. Also, mtgox sent emails to those accounts using its API that the authentication was going to change on March 1, but they did not ban any trading bots. That is what an API is for.
Also, as other arbitrage bots have seen the ban hammer from exchanges, what assurances do you have that yours will not?
I wasn't aware of that anyone had been banned. Seems kind of strange to ban someone for bringing liquidity to your market while paying you fees... "If you are doing this triangular arbitrage how will you protect against slippage in the fiat currency exchange rate?"
We will not protect against slippage other than be relatively balanced in what we hold. Yen goes down dollars go up a small amount. The difference will be not noticeable.
If we do 2000 trades a day and make 50 cents a trade the 5$ we might lose in the currency slippage for the day wont really matter all that much.
This system is not perfectly efficient but it will be more efficient than what is in the wild now if funded fully.
We will not protect against slippage other than be relatively balanced in what we hold. Yen goes down dollars go up a small amount. The difference will be not noticeable.
If we do 2000 trades a day and make 50 cents a trade the 5$ we might lose in the currency slippage for the day wont really matter all that much.
This system is not perfectly efficient but it will be more efficient than what is in the wild now if funded fully.
Do you have your bot hooked into fiat trading exchanges so you can exchange USD for EUR or RMB, ect?
At this time no. We can do this work by hand. No need to risk safety for speed in this case.
OK. Triangular arbitration has a lot of potential with bitcoin. Looking at exchanges that are denominated in the minor and exotic currencies shows that there is a lot of inefficiency in those markets. The problem is the volume.
Since you will be exchanging fiat currencies by hand I assume you will not be doing triangular arbitrage as all three currency exchanges need to occur simultaneously or else you have a risk of price change. It seems like you will be sticking with two-currency arbitrage and taking advantage of inefficiencies between bitcoin exchanges. For more information on three or multi currency arbitrage you can read this pdf on the subject.
A way to hook in a bot is to use Interactive Brokers. I unfortunately do not have the capital to open up an account with them, but their API is really nice.
I do understand precisely what you're doing. Yes, I think you need to explain it better to the those investors who do not understand the nature of what your bot does.
Basket trading is one means of achieving arbitrage. In this case he's using a triangular arbitrage based on a basket of positions (i.e. in EUR, USD, JPY, BTC, etc etc) http://en.wikipedia.org/wiki/Arbitrage
If you're suggesting that the bot will be trading 100% real time, and never hold a position on any currency then I will concede it is not basket trading. As soon as the bot has a bunch of USD or a bunch of BTC or EUR, it's got a position, and really - two - long one, short the other. This is where the risk is.
Also, as other arbitrage bots have seen the ban hammer from exchanges, what assurances do you have that yours will not?
I'm not trying to derail your project in any way. I am inclined to consider investing in a project like this. This, as pitched, sounds risky. ForEx trading is inherently risky, but this sounds more so. Perhaps if you provide more detail, and performance evidence, it wouldn't sound so risky
Basket trading is one means of achieving arbitrage. In this case he's using a triangular arbitrage based on a basket of positions (i.e. in EUR, USD, JPY, BTC, etc etc) http://en.wikipedia.org/wiki/Arbitrage
If you're suggesting that the bot will be trading 100% real time, and never hold a position on any currency then I will concede it is not basket trading. As soon as the bot has a bunch of USD or a bunch of BTC or EUR, it's got a position, and really - two - long one, short the other. This is where the risk is.
Also, as other arbitrage bots have seen the ban hammer from exchanges, what assurances do you have that yours will not?
I'm not trying to derail your project in any way. I am inclined to consider investing in a project like this. This, as pitched, sounds risky. ForEx trading is inherently risky, but this sounds more so. Perhaps if you provide more detail, and performance evidence, it wouldn't sound so risky
"If you are doing this triangular arbitrage how will you protect against slippage in the fiat currency exchange rate?"
We will not protect against slippage other than be relatively balanced in what we hold. Yen goes down dollars go up a small amount. The difference will be not noticeable.
If we do 2000 trades a day and make 50 cents a trade the 5$ we might lose in the currency slippage for the day wont really matter all that much.
This system is not perfectly efficient but it will be more efficient than what is in the wild now if funded fully.
We will not protect against slippage other than be relatively balanced in what we hold. Yen goes down dollars go up a small amount. The difference will be not noticeable.
If we do 2000 trades a day and make 50 cents a trade the 5$ we might lose in the currency slippage for the day wont really matter all that much.
This system is not perfectly efficient but it will be more efficient than what is in the wild now if funded fully.
Do you have your bot hooked into fiat trading exchanges so you can exchange USD for EUR or RMB, ect?
No offense, but this does not sound as well planned or safe as your other ventures. This sounds extremely risky. Sell high, buy low is one of the least effective trading (un)strategies around. You do not sound like you have significant trading experience.
He is talking about arbitrage which is not the same as basket trading.All arbitrage is is buying low and selling higher at at the same time on different markets. There isn't much strategy to give besides having lots of liquidity in lots of markets. Profits aren't guaranteed and will only last as long as a bunch of other others don't join the game, but assuming the fees are accounted for properly no money should be lost.
No offense, but this does not sound as well planned or safe as your other ventures. This sounds extremely risky. Sell high, buy low is one of the least effective trading (un)strategies around. You do not sound like you have significant trading experience.
Basket trading is complex. Basket trading with live currency, rather than leveraged pairs is even more complex, as there are multiple exchange rates to arbitrage.
There are several questions to consider:
Who developed the bot, and what is the developer's trading experience?
Are there any test results for the bot?
Has it run with live funds yet?
Will the bot be using leveraged funds to trade?
No trading strategy is 100% effective. In many cases, the closer it comes to 100% the more likely a market change will make the strategy ineffective. Extremely high Win/Loss ratios tend to be accompanied by significant losses (after a successful run) A bot is only 90% as effective as the underlying strategy it uses.
I'm not saying it sounds like a bad deal, just very risky, and that some additional information might make for more informed decisions by investors.
Basket trading is complex. Basket trading with live currency, rather than leveraged pairs is even more complex, as there are multiple exchange rates to arbitrage.
There are several questions to consider:
Who developed the bot, and what is the developer's trading experience?
Are there any test results for the bot?
Has it run with live funds yet?
Will the bot be using leveraged funds to trade?
No trading strategy is 100% effective. In many cases, the closer it comes to 100% the more likely a market change will make the strategy ineffective. Extremely high Win/Loss ratios tend to be accompanied by significant losses (after a successful run) A bot is only 90% as effective as the underlying strategy it uses.
I'm not saying it sounds like a bad deal, just very risky, and that some additional information might make for more informed decisions by investors.
Will you be attempting to do any triangular or multi-currency arbitrage or are you going to only stick to two-currency pair arbitrage?
Yeah, that is the whole point of this. We are going to be the biggest fastest arb bot out there.
So both? I am sure you will do what most other bots in the bitcoin world do by taking advantage of inefficiencies between two bitcoin exchanges.
Will you be taking advantage of different exchanges that use different currencies? For example, an inefficiency exists between the BTC/USD on mtgox, BTC/RMB on btcchina.com, and USD/BTC at your bank. If you are doing this triangular arbitrage how will you protect against slippage in the fiat currency exchange rate?
We do not want to show our trade history. In the long run this will make us ineffective. However current positions from time to time will not be an issue. Desired positions can not really be reported. By the time the report comes it will already be trade history. We will only act when we can make a match and make some money.
How will posting trade history make you ineffective? Showing a trade history in this market is needed IMHO because anyone could say, "Hey guys/girls, we lost money this week...sorry". Desired trade positions can be monitored. Even in the volatility of the BTC market, if 'you're buying high and selling low', trade positions can be open for days/weeks.There is no trading methodology here or than sell high and buy low.
Without a trading plan, other than this, you are bound to fail... 
How are you going to get USD/EURO/etc funds? By selling BTC? How are you going to protect yourself against exchange rate swings in that case?
This risk will and can not be avoided. However it is not really an issue as we will be buying and selling all of the time. The only time it would become an issues is if/when we wind down the project.
Considering this is what brought LIF.X down, I would not underestimate exchange rate risk! You will effectively have assets in a mixture of BTC and fiat, but all your liability/equity will be in BTC. If would be less risk for you if you could raise funds in BTC and in fiat, or have some mechanism in place to hedge this risk.
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