Topic: [CLOSED] MtGox Volatility Trading Bot [GMVT-BOT] - page 2. (Read 11113 times)

So, finally Nefario fixed it and 700 additional shares were issued.

I didn't have that item under Security administration panel. Now Nefario responded to the ticket and it is there. But still I'm not able to issue those shares. When I try, I get the "You need to get your security holders to vote to allow you to issue." error message.

I'm interested in this and commend you for your bot sir! Well done!

Did you click on "issue more security" in your asset portfolio page?

Yep. Still no response from Nefario on that support ticket.

Any word on the new shares? Are they still held up by Nefario?

Just to let you know, the motion to issue additional 700 shares has passed:

% to pass motion: 60
Voted Yea:563
Voted Nay:79

But I still don't have those additional shares in my account. I have opened support ticket on GLBSE and it is assigned to Nefario right now. Hopefully, it will be resolved soon. I will put an ask at 0.1 afterwards. Some of those shares (around 200) I plan to buy myself if they won't be sold.

I will think about this for a while before I go in big. In the meantime I purchased a small quantity of shares. It is really great to see something like this appearing; it's a good alternative to the usual bonds and mining shares (or overvalued equities).

You mean the thing you can do with the watch button?

Sorry nothing to see here just subscribing

http://devtome.org/wiki/index.php?title=Open_Transactions

http://open-transactions-tv.github.com/

https://bitcointalksearch.org/topic/open-transactions-server-assetbondcommoditycryptocoindeedsharestock-exch-53329

-MarkM-

I don't know what's Open Transactions  Any links?

I notice you mention that percentage commission on trades somewhat limits you, but then I also notice you like to place huge numbers of tiny trades.

So I am wondering whether the fee structure used by Open Transactions, in which there are no percentages but there is instead a "usage token" fee per API call, would tend to seem better or worse than the "traditional" commission-percent type fee structure?

-MarkM-

Motion was raised to issue 700 additional shares for operation of BitcoinCentral bot. Please vote.


You can see the BitcoinCentral bot performance stats in the original post.

If the price goes downwards out of the range we will end up with only bitcoins and no fiat money. In that case I would raise a motion if we want to wait for the price to go back upwards into our range, and/or to spend all the profit we made during that week to extend the range downwards or to shut down the asset and distribute bitcoins to shareholders. That's the exit strategy if price goes below the range. In this case we will end up with more bitcoins because we bought them lower than we sold them.
It may happen also that price will go steeply upwards and bot will not be able to catch up moving range upwards. This scenario less likely because I made it so that the range can move upwards faster (and much less costly) then downwards. In such scenario, bot is spending (some) profit for moving the range upwards. Also if bot will not be able to catch up moving range upwards and price will slip out of the range and will remain at higher levels for several weeks and forseeable future (looking at the MtGox market depth), we may extend the range upwards and continue trading at that higher prices as well but in this case the dividends/profits will be lower as the trading amount will be lower (I may raise a motion to spend let's say 50% of profits for strengthening the range). In this case investors will still not lose a single bitcoin but may expect lower dividends until we catch up with the price increase or until the price correction occurs. Right now we USD bot covers range approximately between 8.5 and 18 USD.

Also I would note now that at higher prices we have smaller orders and (at MtGox) we pay higher fees, so expect lower profits at higher prices if volatility stays the same. And also I don't understand why this asset is traded as high as 0.25. That's 2.5 times higher then was the IPO price and unless you expect such huge volatility as was last week to occur often don't buy it at that high price 

Thanks for the prompt reply!

So, lets assume that the volatility suddenly spiked far beyond what we saw even on the crash day - in this case, you could potentially have a large loss as you continuously attempt to get in at lower and lower prices awaiting a rally, correct? Because even by having a very large range relative to recent price action, the potential to go far outside that range still exists (and in many studies, these types of volatility spikes have been proven to occur far more often than would be expected by random chance). At what point will you cut losses? There must be an exit strategy here both for winning trades and for losing trades.

I'm not saying I won't invest if you admit to the potential for losses exists; rather, I'm saying the exact opposite. I know that it's impossible to avoid them, so I'd feel much more comfortable knowing what the scenario is that would causes loses so I can properly judge the risk here. Saying "never loses money" doesn't ring right with me at all, it makes me imagine that the volatility bot is doubling down as prices move farther and farther out of the bbands (or whatever you use for volatility measurement), which means no losses for sure until one day it goes poof...

Sorry if my questions are harsh but I must do some due diligence here (it's just business), I mean no harm . Thanks GeoRW!

The secret is keeping the range large enough, so that the price will not slip out of it and in case price is approaching the end of the range start moving the range. I don't want to explain everything in detail (so everyone will just start to copy it) but I set it up so that moving range upwards is much easier than moving it downwards. Even after the market price slips out of the upper range boundary I can still move it upwards and cost will be minimal (this may be considered as a loss but is so small that it will be quickly covered when normal operation resumes). The last market rally and crash was quite a test and we passed it very comfortably, just for one day price went below 8 USD which was the lower range boundary but it quickly recovered back to around 10.

Good for you, and I am also considering making a short-term BTC/USD trading bot for my fund. In the meantime, I will consider investing here... but one big problem:


There are many ways to scalp volatility, but I've never ever heard of a system that doesn't have any losing trades. Could you please elaborate?

Thanks Geo

Yes sir, thank you very much.