Topic: [CANCELLED] High Frequency Trading Algorithm ETF IPO - page 2. (Read 6091 times)

It sure prevented shit like this: https://bitcointalksearch.org/topic/a-high-yield-bond-low-risk-interst-paid-daily-02-12-109883

they are longer answers, take a breather

I said it was "guilty until senior members stop heckling you" and I wonder, statistically, how effective that has been at preventing scams from happening or preventing the community approved companies from going into receivership. From my casual observation it hasn't and that the senior members are a bigger threat to bitcoin commerce than any of the companies they blacklist.

I understand the need to prove trust as well as offer historical data. But this is a chicken and egg problem, for this IPO, so it is more likely I will begin operations with closely held shares and just post the NAV changes weekly.

No info about dividends! No info about infrastructure! No earnings info! No screenshots or proof of any kind! Reserved!

> "ASIC-MINER PT"

That is a passthrough..

> "The manager of it owns half of the shares"

Correction: Half of Bitfountain was offered for sale as ASICMINER (difference being the break even clause). ASICMINER is not one guy, and the manager does not own half of Bitfountain.

> "I want to offer exposure to the HFT profits."

Proof that it actually exists?

1. reserved
2. coins won't sit on the exchanges, only when trading. This the the current way to mitigate what I will call exchange risk
3. reserved
4. I think this is addressed in the original post.
5. reserved
6. BTC, LTC . Evaluations of others based on their liquidity.
7. reserved

reserved answers are just placeholders for answers longer than 1 line

I am a newbie at creating my own IPO, if that is what you mean. This isn't a skill most people are exposed to, and even the ones that are do not manage all the elements of it, except here in bitcoin land. I couldn't find a template or figure out where to do the roadshow in this market. I want to offer exposure to the HFT profits.

I didn't price this based on the size of current companies, but I did notice that there are ALOT of outstanding shares in even the biggest share companies, such as ASIC-MINER PT. The manager of it owns half of the shares and few people hold any of the other half. So I don't expect all the shares to be held overnight.

(Regarding many shares not selling) If the share capital is under certain thresholds then the algorithm will not run since I won't be able to meet any meaningful diversification criteria in the fiat capital markets. If the share capital is that low I can run the algorithm on the order books on BTC-E without disrupting liquidity, but it is intended that the HFT also trades in the fiat capital markets.


I'll stick around but the company has accumulated diverse cryptocurrency holdings and simply hasn't needed to signup here except for the fact that this is the only place where people talk about their securities and btc companies. If there was a more official-like or standardized place to do a roadshow, I wouldn't be here.....

Do you have existing exposure to HFT trading profits? This is where I think there is demand

Daydream, Overactive Imagination and Fap. It's a law firm. You know this because you see its name right here on the Internet, which makes it so.

This is silly, you're a real HFT outfit yet you're talking about doing a play IPO on a play simulated-asset-exchange?

What law firm advises you on this stuff?

-MarkM-

What happens if you can't sell all your shares?

If you sold 100,000 shares at 0.2 BTC each in your IPO, you would have the biggest asset on BTC-TC (by market cap) - twice as big as the current leader and twenty times as big as #2.

I don't think there is any chance of your IPO succeeding with that as your goal. Honestly, I would be surprised if you sold 100 shares.

I hate to be so negative and skeptical, but your statements lead me to believe that one or both of these statements are true:

1. You are a newbie, and your lack of experience means that the probability of failure is very high.
2. You are a scammer.

Why don't you stick around for a while? Contribute to the community and build some credibility before asking people to give you money.

I am interested. However, I would like to get more data:

1. What part of the profit (if any) will be fed back into the algorithm and what part will be given out as dividends?
2. What happens if btc-e is ddosed/shuts down/your account is hacked?
3. How reliable is your infrastructure? Is it running on a dedicated server/ec2? How is it monitored?
4. I assume most trading activities carry risk. Do you have any risk assessment for the types of trades/positions you will be involved in?
5. Can you provide a time graph of your earnings, preferably superimposed over btc/usd and other relevant ratios (since you said you are also trading other cryptos)
6. Related to 5, which cryptos will you be trading? I assume btc, ltc. Are there more?
7. A screenshot of the algorithm in action/log file/sample transactions might help convincing (if possible).

Sorry for raining questions on you, your effort is appreciated.

I've got a couple of ideas.  Why don't you treat this as just another ETF?  What sort of prospectus information would need to be published for a new ETF/hedge fund?  Forget it's bitcoin, that's an implementation detail.

Or, imagine you're approached by an anonymous stranger on the internet, and he asks you to invest your hard-earned and not-all-that-keen-to-piss-away money in him (ie. you're not a millionaire with a couple grand to drop on a "what he hell" investment).   What sort of information would _you_ want to be presented with?  What would convince _you_ that the whole endeavour is legit and not just some half baked scam?

You act like this forum only has mining securities. No, there's a ton more, and this is one of the shittier ones (like that Joker one).

The downside of a quarterly dividends is that you're able to try to get as much shares sold as possible for 3 months, dump all the shares on the orderbook, and then run away without paying a satoshi.

This isn't "innocent until proven guilty", you need to prove that (i) you can be trusted (ii) you are actually competent at what you do, and actually has a trading algorithm and (iii) that it makes a profit.

1a) Incorp, that is in the public filings.
2a) DAS, IB API
3a) Yes. STS Ltd is in contracts with other entities in various capacities, such as Limited Partnerships between STS and other entities, where the LP gets the profits.

1b) Clearly Newbie jail is pretty pointless now
2b) Not a question
3b) I have been thinking about this throughout the day, and the "guilty till senior members stop heckling you" thing is pretty common here. Literally in every security and alt-coin on this site has this. How does anyone NOT have to be on the defensive in that situation? I am genuinely curious at this point. The skepticism I've felt compelled to respond to, out of bewilderment, has largely been about things not relevant to a successful fund.

Fund-related question: The same percentage gains over a finite period of time will simply be worth more if the capital is larger to begin with. I do operate it without you, it has done well. The traditional capital markets do not provide exposure to profits from high frequency trading algorithms for small investors, it would be marvelous to IPO such a thing here.

Interesting.

There seems to be an awful lot of hazing (or harassment?) going on so I'll give you my perspective on this.

You need to try harder at proving yourself. You're using a new forum account created yesterday. You're making fairly large claims, but as far as I can see, haven't really proved yourself. Bitcoin assets aren't legally recognized (yet), so virtually nothing stops you from taking people's money and running. This causes quite a bit of skepticism in prospective investors. If you haven't noticed, there are only a couple genuinely successful assets at the moment, and of those, there is really only one that I'd be comfortable holding any sizable investment in. Those successful assets all have a few things in common though, their backed by either a great reputation and/or a something that's already in production release for anyone to see. Right now, you have neither.

I think the solution to the problem above would be :

• Personally identify yourself (I know two of the most successful assets have done this)
• Provide some kind of proof of earnings/concept.

Then we have problems with the IPO itself...

• 100,000 shares at 0.2 BTC each. You're asking for 20k bitcoins (or $2.4 million USD at current exchange rate).
• You're offering quarterly dividends on something that daily dividends would be easy enough to provide.

I feel like I don't really need to explain why those are problems, but I'll do it anyways... Putting first set of problems together with the second set just doesn't sit well, but lets ignore that. You want your bot to be trading 20k bitcoin, the market isn't even active enough for a HFT bot to effectively utilize 20k bitcoins. The next question is, what happens if the exchange you're trading on gets hacked/shutdown/or turns scam? How do you plan to minimize this risk? Why would dividends be paid quarterly when you could attract investors by (easily) automating daily dividend payouts and built in growth plan. How will reporting be handled? You could have a site with an 8 hour delay that feeds some kind of data on the bots actions. I've got plenty more thoughts on all this but I think for now, this is plenty to go off of.

Few questions on the company:
1) Who's the registered agent under STS Ltd?
2) What platform does the company currently use to execute HFT on the Nasdaq and NYSE exchanges?
3) Does the company currently have real-world investors that profit from the HFT?



Here's what I've gathered so far by reading this thread:
1) User creates an account on April 21st, 2013 and rapidly gets out of Newbie jail with the sole intent of getting into Securities
2) User creates a Securities listing asking for BTC20,000 (100,000 available shares) for their HFT "expertise".
3) Instead of pleading their case with evidence, User badmouths anyone who shows skepticism.

Here are my fund-related questions:
If you're algorithm worked so well under a real-world scenario, why come to Bitcoin? Followup question to this is; Couldn't you have used your own money / profits from your algorithm, convert them to BTC, and operate your algorithm on the Bitcoin Exchanges without any help from us?


I look forward to your responses.

glad to see this, keep following the thread

This algorithm is not doing arbitrage between bitcoin exchanges. It trades the order book, and also engages in pair trades between correlated assets.

The amount of assets kept in USD depends on how large the fund gets. The majority of the portfolio will be in bitcoin because the trading algorithm does not require all capital to be deployed. (an individual trade may use 10% of capital, for instance) BTC-E cannot handle many large orders as there is not liquidity there to support it right now.

I have been thinking about how to post previous performance just to get the fund rolling. I also talked to someone on bitcoin-assets about this sort of thing too.