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

Every ponzi/scam pays out dividends.

Until they stop.

until they pay dividends I really don't care what people call it, lol 

I'm a little disappointed that the company's name is now associated with the near-libelous accusations in this thread on search engines, I knew that was a risk but I thought I was being transparent

lol, yep, you can't judge ev1 equaly, oh my... 

lol, thats funny because the crux of 3 pages worth of "why this fund is a scam" was based on that other person's fund being a scam in the past

Just to report, Im receiving dividends from my JDBIF scam shares  It is paying a bit every day. And I withdraw ASAP. 

Damn straight.

LOL @ being insulted at a poor scam attempt. 

Q. What sort of scammers are these Bitcoiners?
A. Nothing but the best!

I started this thread cautiously interested, I think you (STS) have been actually treated very politely considering how little you have offered.

So far it seems you are trying to rip people off either through massive incompetence or deceit and you are doing such a bad job at it, it is insulting.

His is an outrgiht scam.

He promised 20% dividends per month, stopped paying and vanished once sales dried up.  Then about 5 months later he shows back up says he didn't pay dividends because he was increasing the share's NAV then explains he can't buy back because the share price has fallen.  Or some such bullshit.

Last time I looked the screenshots on his blog showed evidence of nothing - as nowhere was there anything identifying any of them as being related at all to any activity conducted by him.

Rather than worrying about the questions we ask, focus on the answers.  Think to yourself : "What can I do to prove that my business and algorithm are real and make a profit denominated in Bitcoins."  If you address that then nearly all the questions asked so far will be answered.  I emboldened the last part - as proving a small profit in USD is worthless.  Over any significant length of time just holding Bitcoins has made a good profit if expressed in USD - with no counter-party risk.

And to answer your last point - yes, people DO want to invest in this sort of thing.  But they want to know:

a.  That the issuer can actually do it.
b.  That it will outperform just holding Bitcoins.
c.  That the plans of the asset issuer actually make sense.

Yours almost certainly fails on one of b. or c.  With the funds you're asking for there's no way you can use them all on BTC.E - and the only other alternatives you've suggested are USD sites where you're unlikely to outperform just holding BTC (it's NOT totally impossible - just highly unlikely that you can do it AND have to come post on a forum to raise capital).

Also GLBSE had BDT or BDK or w/e that bitdaytrade thing was called. Remember bitdaytrade?

HFT trading on 1hr+ lag MtGox & co, it's happenin'.


No, he's looking for more usagis. Apparently the original one is getting kinda worn at the seams.

Okay I was able to look those two funds up.

Jokerdragon's seems to have been running for a year, the screenshots on the blog sites are interesting because some people wanted to see something similar from this offering.

Exchange.ESIF's thread pretty much has the exact same scrutiny as mine, except all by you.

Which reveals to me a better question to ask: Are you actually looking to buy shares of similarly structured securities at all?

Yeah, Crypto has JDBIF and Bitfunder has Exchange.ESIF, so only fair BTC.CO gets one (a mainly USD denominated fund run by someone with no history in the community, no evidence that they've every made a profit doing anything, no accounts of any sort provided and zero explanation of how their trading will influence unit price to any significant extent compared to the BTC/USD exchange-rate's impact).  Though this one actually seems to have a set price for units (though laughably claims the market will actually set it - as though he actually expects $2.5 million or whatever to be handed to him in a rush allowing him to sell out and remove his price ceiling) - which is more than either of the other two ever managed to date.

Why does it sounds like JDBIF (jokerdragon) on Cryptostocks.... hmmmm


I think the following campaign advertisement will work more effectively for your IPO.

Except there's no harsh questioning of new investments. This thing here is NOT an investment. The toilet bowl is not an investment. It is true that in both the toilet bowl and this thing here you could throw money and then flush. This however does NOT make them investments. Investments are NOT those things in which someone could put money, that's not the criteria.

So, in fact, there's (recently) a lot of telling off of idiots who masquerade doing "investments" while doing no such thing. No amount of pretending will save this, the OP's braindamaged attempt to install himself as an actual investment in the symbolic space by this backhand gimmick works no better than his original direct approach, or any better than his attempt to sound sorta like State Street Corporation (and for that matter the Capital One Corporation noob scammer was probably related in some manner on the strength of the naming mo).

Finally, a lot of failures USED to happen, before MP via me introduced this entirely novel, muchly appropiate and very very effective strategy of calling idiots idiots,  scammers scammers and sending delusional noobs packing to the library. Before we pretend like nothing changed it'd be a good idea to compare numbers and see how in fact they got cut in half since MPOE-PR showed up, roughly speaking.

Fantastic, that makes life a bit easier. What's STS Ltd's CRD# or SEC#?


That's a pretty typical argument, but it does help to show how eager some new users are to get into various parts of the forum..such as lending, auctions, or securities...which 75% of the time speaks volumes to their underlying intentions.


As are most statements.


I'm not sure how this differs from a real-world scenario. Think of this as your "big debut at an Investment Firm" even if it isn't. You're job when coming to us is to give us the full presentation. Show us your charts, your data, your credentials, your financials...all the evidence that we can utilize to make the most informed decision. You're here to give an astounding presentation on just what you (or your company) have created in order to gather investors.

For the sum of money you're looking to raise, this situation is no different than if you stood in front of a Board and gave your presentation on why they should invest in your algorithm.

The more transparent you are, the better off you'll be. There are a lot of smart people here in the Bitcoin community and we've seen more scams (both real and "would be") than we can count...we're used to smelling bullshit more than a mile (or kilometer) away (not saying you fall in this category, just trying to make a point). We're more than inclined to ask the tough questions, and we expect thorough answers.


The more information you provide, the better off you'll be.


Approval by a number of "senior" members doesn't necessarily prevent a scam, but it most certainly helps...and I can say that we've certainly vetted a number of individuals with nefarious intentions, the majority of which are over in the Lending section, but there are a few here in Securities as well. I have no idea how you think senior members are a "bigger threat to bitcoin commerce"...is it because we try not to let new users steal other users money through their carefully crafted words and businesses?



This ^^


This too ^^

So you (correctly) assert that:

1.  There's a significant amount of harsh questioning of new investments,
2.  A lot of scams/failure still happen.

And then, SOMEHOW, reach the conclusion that means there's too MUCH questioning?  Aren't those two points evidence that there's not enough?  So you really believe everyone should just roll over and hand out cash without question?  Or does that only apply to YOUR investment?

Answer #2 is concerning.

Coins NOT on exchanges aren't doing anything.  So either:

A.  A lot of coins aren't used so you're "mitigating risk" by not using most of the capital - which people can do better themselves just by not sending them to you in the first place.

or

B.  Nearly all coins ARE on exchanges and your answer is irrelevant.

The correct answer would have been that you CAN'T mitigate the risk of exchanges you trade on going bust - it's a risk investors have to assess before parting with their coins.  And they can only do that when you give clear information on how much capital you'll be using on eaching exchange (at which point they'd realise that either this is total fantasy or it's mainly USD-denominated being misrepresented as a BTC investment).

I would wait for a better exchange with good volume, stable API, and reasonable fee, no % fee thing, before attempting frequency trading, or wait until IB has it.

There is no "chicken and egg" problem here.  We're not asking for proof that you know how to trade bitcoin markets.  We're asking for proof that you know how to trade _any_ markets, for a starter.  If you truly have a day-trading/HFT background then you would already have proof, maybe in the form of an already profitable ETF trading on a _real_ stock exchange, for example.

As I said in a previous post - it's simple.  Imagine it's me asking you to invest a significant proportion of your free cashflow in me and my trading enterprise.  What proof would you want me to show you, to convince you that a) I won't just run away with your money, and b) that I actually know how to turn a profit trading.

There will always be doubters and haters, so stop engaging.  Instead, answer the reasonable questions.

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.

Quoting as still largely not addressed.

SAYING it's been profitable isn't the same thing as proving it.  Even then you only claimed to have increased BTC by 20% in 4 weeks during a period where BTC fell heavily.

Maybe sort out some demonstration of it actually trading?  Seeing it trade (over Teamviewer or similar) wouldn't give away any details of your algorithms but would at least prove you actually had software that did automatic trading.

How are you going to present financial reports?

To what extent is your capital actually kept BTC denominated?  If you're trading nasdaq etc then that means using USD there.  If only a minority of your holdings are on BTC-E and only part of them are in BTC then it oculd well be that the vast majority of your holdings are actually NOT in BTC - in which case your NAV is going to change more as a result of the BTC/USD exchange-rate moving than from any results of your own trading.  That's why historical results would be good - as they'd allow us to assess the actual effective denomination of what you're offering (that it's sold priced in BTC means nothing of itself if the funds will then largely be converted into USD).

How do you move USD in and out of BTC-E btw?  That's the biggest issue with trying to arbitrage their price vs that on Gox - it's easy to move the BTC in one direction but getting USD in the other is time-consuming/tricky/expensive.

OK. I'm interested.

I've looked at other listed bitcoin share companies and I just don't think that question is relevant. You made up that question on the spot as well as the arbitrary amount of legitimacy it earns. We could do this all day and it won't get anyone anywhere.

How about this, read the prospectus of any ETF trading in NYSE or NASDAQ and tell me in clear numbers how many people are managing that ETF. Then tell me what you would like to see in this one.

Secondly, look at a couple public algorithms on Tradestation and tell me how many developers worked on them, and if that is at all correlated to their performance.

So rather than denying it, you essentially confirm that you're a one man show. Trading algorithm born out of a basement?

How do you expect to get through the btct.co moderation process? (You won't)

I want to list a company, diversify bitcoin listings away from mining, thanks for the "education". You literally put me on ignore within 2 minutes of joining your channel. You are a bigger danger to bitcoin commerce than any of the potential companies you blacklist and discredit within 120 seconds.

If you want to be a defacto regulatory, at least come up with sensible regulations.

Also a red herring, BTCT.CO 's dividend distribution for every company listed is run by one person.

I would be surprised if STS Ltd had more than one employee.

Its SEO ambiguous, as google isn't a need or a consideration nor does it contain the target audience in a company like this.

The algorithms are property of STS Ltd, and that is pretty much the entire extent the company has in this endeavor. The algorithms exist and they function, so how does investigating secretary of state filings help anyone? I mentioned the company name solely so you guys could google it but the direction of the investigation seems to have turned into a complete red herring for everyone now.

The share distribution is a solely related to the listing of and the profits of the HFT algorithm. As far as company hierarchy is concerned, this will be a division that can be spunoff.

This guy is a nobody and doesn't want to learn apparently. Move along.

As someone who's interested in diversifying my Bitcoin holdings away from mining companies, I am very interested.

However I am also skeptical.

A google search for  "state trading society ltd" has this thread as its first result, and the rest of the first page is irrelevant.   Putting quotes around the "state trading society" bit confirms that a company of that name actually exists, but nothing more.

So, if you are an entity that has been created purely to list on btct.co and trade bitcoin, whose IP (algos) are you using, and where is the "proof" that these algos are real and work (and that you have the rights to use them)?  And if STS Ltd  is an entity that actually trades BATS, EDGE etc, then where is the "proof"?

On a totally different note, quarterly dividends is a lifetime in Bitcoin land (it's a cliche, I know, but it's true).

You mention your plan to

I hope by that what you really mean is that you intend to hedge USD volatility.   This is a bitcoin-based investment in a bitcoin-based trading fund - all profits should be measured in bitcoin.  (that's probably what you meant, however the sentence to me could be read either way).

Given the significant price differentials between the exchanges (I've seen $10 differences between btc-e and mtgox at times), I am hoping that cross-exchange arbitrage is one of your plans.

I have high hopes - if you get this right, the possibilities are huge.

Its a bit time consuming and tedious actually as none of the critics have even asked about the business plan or commented about the ample disclosures I posted.

Zero other traded companies in this forum have listed these things that I think make a public company more legitimate, although mine does and these are things that publicly traded American companies disclose.

My impression, at this point, is that this community does not know how to vet anything except mining companies, and a couple of gambling websites. Just from taking a cursory look at other threads on the securities subforum, and taking a cursory look at the companies that have been approved for listing on the exchanges. I'll be available to address further criticism for a limited time to further understand this community, but this process has already put a bad taste in my mouth and I think there should be a real discussion on how to attract commerce and wealth generation in bitcoin and cryptocurrencies.

This has been posted now but what would you like to see?

Funds do not traditionally need much of a web presence, especially not proprietary algorithms. And are there any traditions in bitcoin funds that have materialized over the last 8 months? is bitcoin-otc the best the community has, because that place is completely irrelevant to STS ltd operations.

I think I will post the letter from the Secretary of State where it is registered, but maybe this community has other things in mind.

The algorithm has several subroutines.

It actually does HFT at bid and ask judging latency and distance to exchanges where possible, as well as pair trades between correlated assets, amongst others things.

Although this algorithm can seek to engage in several orders within milliseconds, the exact interval or definition of HFT is ambiguous, as it is inaccessible to most people. Therefore people will be interested in any profitable trading algorithm.

spend literally two more seconds on google and you can see it is older than 9 months, but continue with your expert detective work. The HFT algorithm shares are not shares or membership interests of STS Ltd. Regardless, share ownership will be the vehicle used to realize profits.

This was very helpful thanks


yeah so far I have been discouraged by the lack of a "roadshow" that IPOs on real world exchanges go through as part of the process, any opinions about the contents of the IPO are usually made in private by bankers and investors and the IPO packaging is refined. Here I have to post on a forum and thats it.

yeah both the companies wanting to get listed as well as the listing exchanges get "hazed", this is pretty funny, although time consuming, but probably due to the follies of previous companies

STS Ltd engages in algorithmic trading, software development by the nature of algorithm development, and derivatives research

I love the drama here in the securities section.

The hazing is more a forum thing.  We expect forum discussion (Q&A) as part of the approval process.  We realize not everyone can be a pro, so we lean heavily on the pros in the forums asking the hard questions.  This thread is a good example.  It's not always pleasant, but if your business plan is a good one it'll stand up just fine.

Responding to moderators is easy, you just post a response in your thread.  Most, if not all of the mods read the threads.

Not wanting to side-track this thread more than that I'll just add that Usagi has definitely seen more scrutiny than others due to various ongoing controversies.

Feel free to PM me or post any questions you might have about the process.

Cheers.

The level of lol is too high even for a see here link.

It's an interesting proposal, but you should be aware that getting listed on BTC-TC is not guaranteed. Assets listed on BTC-TC (and litecoin global) have to pass moderator approval before trading. The process is a bit like getting hazed. Quite a few businesses are given a hard time listing, often for no reason. And a lot of scams get pushed through because the moderators don't really know what they're doing and there's no quality control. One of the big problems is there's no real way to answer a moderator's comment. Many moderators vote anonymously, and leave ridiculous or even defamatory comments in their votes. Moderators will often downvote you for something they just voted YES on in another asset. There's no way to complain, and there's no way to strive to meet some minimum standard, because there is no standard. The way you get listed is to be friendly with the mods. In practice it's the only way to get listed there. You can get listed even without providing any contact details or even a real contract, so long as you know the right people.

It's a bit of a crap shoot actually, but I say go for it and don't listen to anyone who tries to discourage you.

(Keep in mind this could be sour grapes on my part -- my own business, SILVER, has 12 downvotes and can't get listed despite being in profitable operation for four months.   )

I'd like to know this too before considering investing. Plus proof that you are legitimate and own STS Ltd.

That is arbitrage, not high frequency trading.

Algorithm... I thought you are developing an algorithm for a trading platform such as Mtgox, so that they can improve their delay and never have a down time any more.

If it is only considering transferring BTC/USD from one exchange to another, I will step aside. However I will appreciate the work you made to balance the BTC/USD ratio everywhere.

Where is STS Ltd registered?

I logged into bitcoin-assets channel and talked to some people about this as well.

Turns out its more a chicken and egg problem, over there they swear by bitcoin-otc's web of trust , yet this is a computer, trading, that has never needed to sign up to a forum.

Fortunately I have been able to talk to some people privately today about actual finance related nuances, and I do like the interest.

It is profitable, but data is limited by chronology.

Bitcoin holdings increased 120% over the past 4 weeks, due to volatility. As in, they were X bitcoins held 4 weeks ago, and now there are X*1.2 bitcoins held. I think that part is attractive since so many people lost their shirts in the speculative bubble, while this algorithm performed well even with the lack of shorting facilities. The trading algorithm for the stock markets are limited by the pattern day trader rule until funded. It has run on a direct market access co-located proprietary trading shop's systems, and performed very well there.



I was also under the impression that the share company listing exchanges help take care of possible accountability issues. But I could be mistaken in this regard.

Mt Gox api is wayyyy too wonky. they turn off the api before they turn off other parts of the site. Mt. Gox is more liquid and can handle larger bitcoin orders though, but the algorithm is doing pair trades between cryptocurrencies as well as trading with USD, making BTC-E the most liquid place to do this.

no. the ETF will listed on btct.co , thats where people will buy shares.

the HFT performs on BTC-E, NASDAQ, NYSE, BATS, ARCA etc.

bitcoin has the added volatility of swinging at least 10% every 24 hours, this is favorable to a subroutine of the algorithm which is related to the way it places orders.



currently all the bitcoin share companies are all mining companies. this is not a mining company and that is where I see the opportunity.

I highly doubt the trading was intended to be on btct.co.

I would like to know what exchanges you are trading on though?  I saw btc-e mentioned.  Are you also trading on gox and vircurex?  I've often wondered if money could be made with some automated multi-exchange algo's.

This ETF performs HFT on btct.co only? That's quite interesting given how there's about 8 trades a hour on btct.co

A good place to start would be proving that the company exists and has been trading profitably.

Historical financial statements in the format you'd be reporting future ones in would also be useful.

There's no point discussing the detail of your operation until you've proven there actually IS an operation.

September 4th 2013 edit: Pursuing this particular asset has been cancelled. The algorithm was used instead on cryptocurrency stock exchanges and was able to make a profit of several hundred percent in three months. Future offerings will be structured with more regulatory scrutiny in mind, as well as the improvements in the bitcoin securities community.



=============== Original post =============


This is an IPO of an exchange traded fund (ETF). The underlying asset is the profit of a high frequency trading (HFT) algorithm created by State Trading Society (STS Ltd.)

STS Ltd. engages in algorithmic trading and derivatives research. The company’s trading algorithms currently run on electronic exchanges such as Nasdaq, BATS, EDGE, NYSE, and BTC-E.

The cryptocurrency market is engaging because there are no settlement times for trades and no limitation on market trading hours, allowing for a greater frequency of trades to occur as liquidity improves. This algorithm will be trading on usd and cryptocurrency markets.

Net Asset Value (NAV) of a share will be posted weekly priced in Bitcoin and in shorter intervals as the market grows.

Holders of interests in the ETF will benefit from the appreciation of the NAV and special dividends.

Share capital is used directly for the trading algorithm. This is a computerized operation whose funding (for this ETF) will be from the ground up, much like how the mining companies operate. STS Ltd. will cover the IPO listing fees.

Specifications:
Exchange for listing: BTCT.CO BTC Trading Corp.
Shares: 100,000
Price: .20 bitcoins, but tbd by free market
Dividends: Quarterly or special dividends, TBD

Anybody that has ever lost money trading should understand the implications of this fund and why it would be good for them.

Transferring ownership of shares can continue even if the exchange goes down.

If there are any questions, skepticism or concerns, please PM me. This thread will be used to judge sentiment and post NAV.

Risk Disclosure and how this fund mitigates them:
Currency Risk - The algorithm will be trading in bitcoin markets as well as usd markets, and at limited times also be holding other cryptocurrencies while engaging in pair trades. The main volatility of these holdings will come from the bitcoin to usd exchange price, as there will be significant holdings priced in usd on usd exchanges. The fund will seek to hedge bitcoin volatility in relation to the USD holdings with forward delivery.

Liquidity Risk - The amount of liquidity in cryptocurrency exchanges can be limited, especially in alternate currencies. The algorithm mitigates this by calculating optimal position sizes which are a fraction of the portfolio. The algorithm reads the order books and dynamically creates orders.

Software Risk - Exchanges can change their API. Bitcoin and cryptocurrency exchanges are not as established as other capital markets.


Regulatory Disclosure:
This security is not marketed to US citizens. If only there was some sort of foreign bitcoin stock exchange where people could purchase shares with nothing but an email and bitcoin address.  


TO DO:
- Historical performance, case study