Topic: (Closed) Butter Bot!: Premier Bitstamp, and BTC-E EMA Trading Platform (Closed) - page 93. (Read 274784 times)

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V2.1.1 Release
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Friends,
   We have just released Butter-Bot V2.1.1; which fixes some minor issues with the V2.1 release, particularly as related to Bitstamp trading. The release should be in your inbox, please take a few minutes to upgrade .

Thank you,
   Pablo.

At this point this is true.  If automated transfer were to be negotiated with the exchanges, the bot could make the transfers.  If not a simple re-charge routine ("send x number of LTC to x address") could make "recharging" a one click process.

The problem is that the exchange APIs do not allow for withdrawing funds if I'm not mistaken, so all the transfers between the exchanges would have to be done manually. Or am I missing something?

Ok... off the top of my head, but is something to start the building process for an arbitrage bot, using GOX & BTC-e as examples:

BTC value GOX = BG
BTC value BTCe = BB
LTC value ratio between houses = LR
BTC/LTC ratio on GOX = GR
BTC/LTC ratio on BTCe = TR
Console-adjustable variable = X
 
Rule 1:  BTC & LTC accounts in both houses to remain equal (GOX & BTCe)
Rule 2:  If GR > TR by X% buy BTC on BTCe & sell BTC on GOX.  Invoke Rule #1 to equalize.
Rule 3:  Flip side of Rule #2
Rule 4:  If BG -LR>BB by X% sell GOX buy BTCe.  Invoke rule #1 to equalize.
Rule 5: Flip side of Rule #4.
 
A crude place to start, but would give a coder an idea of what we are looking for.  Rule 1 is a key.  The bot would be able to act fast on an imbalance, to the extent we could fund it.  It will take an hour to "recharge" in BTC, less to recharge LTC to be able to "fire" again; but because transactions are locked in at the time of trigger you never risk any loss during recharge... you just can't do any more trades until Rule 1 cycle is complete.

Hi Balanghai ,
   A lot of people using this one, and we recommend 250-300 USD starting capital; of course the more capital you have, the smaller the swing you need to make a profit.

Feel free to peruse the thread or download a demo at Butter-Bot.com .

Pablo.

anyone using this one? And starting bitcoin capital in trading?

To further develop this, how do you guys visualize the mechanics of such a bot?

As Pangia noted, extracting funds through wire would be very difficult to automate so I imagine we would need to do all our trading in crypto-coins?

Example: Buy BTC in Gox, Sell for LTC in BTCE.
With LTC in BTCE, wait for profit opportunity and sell those for BTC in Exchange X for net profit?

Pablo.

Hi Sean,

Thank you for sharing your thoughts.  Based on what you've shared I have to reconsider my opinion.  I did not give enough thought about an arbitrage opportunity involving the alt coins. 

Thanks.

Hi Bruce ,
   I'm guessing you posted the trade prices of your last two trades?

Like has already been stated, EMA will likely generate about 70% small loss trade (like the one above) and 30% profit trades that would account for all the small losses plus a healthy profit. Also, as back testing will show, you need to run the bot for at least a couple of weeks on uninterrupted, un-interfered with trading to let the math kick in and get rid of mean deviators. Think "The Law of Large Numbers" and you will get a good idea of what I mean.

Back testing and community response is a better gauge of profitability than short term testing .

Please do not hesitate to let me know if you need anything, I am here to help .

Pablo.

Not true.  As someone who does it manually, there is more profit in arbitrage then there is in trading right now; it is just time consuming and a lot of work.  A bot would change this.

Alts are what makes arbitrage fast & easy.  You will notice that exchanges that support alts stay pretty close.  As they drift apart, there is too much profit to be made through arbitrage using alts for them to stay that way long.  This is healthy for the market, and very profitable for those with arbitrage bots.  _I want one!_

Based on GOX's announcements, their next generation trade engine will support at least LTC.  This opens a massive opportunity for arbitrage profit, and will cause GOX's price to quickly equalize with BTC-e & the other alt-supporting exchanges and stay there.  Those with a bot ready & waiting for this stand to profit nicely, and the volume difference between GOX and the others will mean profits will continue as arbitrage brings the rest of the exchanges into step with GOX as it moves up & down.

At last check, there were literally hundreds of stock-bots... and have been for a long time.  I have played with stockbots over the years, and can purchase them at will.  What I have not found is a good (read "safe) release of an arbitrage bot.  This so far is a closely guarded profit maker, & I want in.

Hi Pablo,

First, a great big thank you to you and your dev team. You folks have created a great product.

In regards to your request for feedback --- while an arbitrage bot could be very profitable, the issue that we face is the extraction of the funds to place them back into another exchange to permit the arbitrage to work.  If we look at MTGOX for example, the time frame for withdrawing funds could be forever and recently there have been several posts about not being able to withdraw BTC's for a variety of reasons.  The arbitrage bot would be an alert system and therefore the actual moving of BTC's and funds in an out of exchanges would be up to the customer (time consuming). The profits would also be eaten up (factoring in trading fees and other fees associated with the depositing of funds into financial entities to get the funds into a BTC exchange of course a great arbitrage spread could make up for that, but how often would those opportunities surface).

I believe that the best opportunity in terms of a money maker might be the 2nd suggestion ---- trading stocks on Bitfunder.  There is a great deal of volatility on that exchange and the bot would function on that exchange, like the current Butterbot functions on a designated exchange. There won't be a need to move funds/BTC's in and out of an exchange to another exchange as in the arbitrage idea.

You know that I've always been asking you to create a bot to trade stocks on a financial exchange (DOW, Nasdaq, etc.) and a bot to trade on Bitfunder is an EXCELLENT start.

I'd would like to be your first customer for the StockBot

Thanks and keep up the great work.

Do the suggested reading of the journals by Goomboo, and understand EMA.  The rules and the principal will make you money... _is_ making me money like no other system I have tried.  But, rule of thumb with EMA is that approx 70% of your trades will lose money.

Do the reading and understand the system... or, turn butter loose & let him make you money...

I am looking into buying butter. Right now I am using the demo. Please explain this to me:

EMA diff is at -0.296% (1 BTC = 118.166 USD) at btce --- Sept 6
EMA diff is at  0.256% (1 BTC = 118.2 USD) at btce -- Sept 8

How does this make money?

If I had 1 BTC and it sold for 118.116 and then I bought at 118.2, would I not have less than I had before?

I would like butter bot to support the alt currencies on BTC-E and maybe since their are so many it can find opportunities by trading in one verse any other. Like maybe buying bitcoins from USD then buying litcoins with the bitcoins verse just buying litcoins with USD.Which ever one has more volatility or it detects an opportunity in a certain one.  I hope you know what I mean I had a hard time explaining it  I love butter bot but I can see it needs volatility to really shine. I was interested in the virtual stocks also but if they don't have much volatility I don't know if that would be much better like seanrarey said it may be better to direct all your efforts here??

Add the the list of wonderful additions to butter that I am hoping for are the ability to test against data from different exchanges (not just GOX), and the ability to tune the settings on the different exchanges individually based on these tests.

Hey ,
   Alts will most likely be a part of the V3 release if nothing big comes up . We are asking for feedback because we would like to develop more high quality products for your profit and enjoyment. Please note development on Butter Bot will continue just as it has been (we have the next three versions already sketched out) .

Pablo.

I 2nd this.  Butter is the best cryptobot I have found, but there is so much that can be added, I too vote to keep resources toward improving it; particularly the ability to trade the alts and arbite between exchanges.

On the one hand this would indeed be interesting, but considering the lack of liquidity of the BTC stock markets, I, personally, would be very cautious with automated trading.
Also it is worth noticing the spread (typically ~5%), which I believe in large contributes to the (perceived) volatility.

I would much prefer that efforts and resources be directed at expanding functionality/algorithms on the existing markets. E.g. crypto-to-crypto trading, including the possibility to trade more than one pair of currencies simultaneously on a single exchange.

Just my 2 satoshis

This feature would be totally awesome! I'm more than only interested!
Litecoinglobal.com and btct.co share the same design and API (since they are both operated by burnside), so maybe you wanna take a look into these two.
They seem to be the ones with highest volume i think - with Bitfunder.

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Different Request for Feedback
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Friends,
   We have received another interesting suggestion. A couple of customers have suggested a bot that would be similar to Butter-Bot but which would trade stocks on sites like Bitfunder based on different analysis principles. It has been suggested to us that there is high volatility on these stock sites and that this would be a useful tool.

We would appreciate feedback on this idea as well, is a stock trading bot something that interests the majority? What kind of features would you like to see in such a bot?

Thank you.

Pablo.