Enjoy the dividends. 
Topic: [CLOSED] MtGox Volatility Trading Bot [GMVT-BOT] - page 3. (Read 11113 times)
Second dividend was paid. This week was hugely volatile, started with a market crash, then volatility continued due to uncertainty around pirateat40. This is probably the highest dividend for a while. I didn't expect this bot will perform above 1% weekly, now we got 6.29% Enjoy the dividends.
Enjoy the dividends. Out of curiosity how did you do in the two flash-crashes? This weekend has been a pretty good test of bots 
If market's going down we are buying coins cheaper, so profit in BTC is high now. What I'm worried though is that the price will go downwards too much and it will slip out of the range the bots are covering. So I'm slowly extending the range downwards which may cut down our profit a bit if price recovers quickly upwards but I would rather have this as a long term project. If the price will go below around 8 USD and below 5 EUR quickly and will not recover in under a week I will raise a motion if investors want to wait a bit longer for markets to stabilize or liquidate the asset or move the range downwards (this third option will be costly but may make us more profit in longer term). I will let you know exact figures if that will happen for you to decide.
Out of curiosity how did you do in the two flash-crashes? This weekend has been a pretty good test of bots
First dividend was paid. It is rather low 'cause the price went most of the time straight upwards. But good news is that with recent market crash and huge volatility we are profiting a lot. Also we breached 100 BTC trade volume barrier and having only 0.55% trade fees as of now. Next trade volume barrier to 0.53% is close (92.74% - almost there). Also BitcoinCentral bot is almost ready and working nicely, I have fed him with 70 bitcoins and plan to implement 2-factor authentication this week. If remaining shares from IPO will not be sold this week I will buy them myself. The week after I plan to raise a motion to issue additional 700 shares (70 BTC) for BitcoinCentral bot. Have a nice weekend.
Awesome. Your bot must have had a hell of a good time yesterday
First dividend was paid. It is rather low 'cause the price went most of the time straight upwards. But good news is that with recent market crash and huge volatility we are profiting a lot. Also we breached 100 BTC trade volume barrier and having only 0.55% trade fees as of now. Next trade volume barrier to 0.53% is close (92.74% - almost there). Also BitcoinCentral bot is almost ready and working nicely, I have fed him with 70 bitcoins and plan to implement 2-factor authentication this week. If remaining shares from IPO will not be sold this week I will buy them myself. The week after I plan to raise a motion to issue additional 700 shares (70 BTC) for BitcoinCentral bot. Have a nice weekend.
There are 2 bots, one on BitcoinCentral and one on MtGox.
He's talking about the BitcoinCentral now, the MtGox is the one for the shareholders I think.
He's talking about the BitcoinCentral now, the MtGox is the one for the shareholders I think.
Yep, if shareholders will agree I will issue some more shares for BitcoinCentral bot. IPO was for bot working at MtGox (now there are actually 2 bots at MtGox, one at USD market and one at EUR market). BitcoinCentral bot needs more testing and also there are some additional risks, like it's a small less known exchange that can close down more likely maybe, there's no API for trading (I need to parse HTML which is pain in the ass), and I don't have 2-factor authentication for this bot.
There are 2 bots, one on BitcoinCentral and one on MtGox.
He's talking about the BitcoinCentral now, the MtGox is the one for the shareholders I think.
He's talking about the BitcoinCentral now, the MtGox is the one for the shareholders I think.
Added stats for BitcoinCentral bot. This week bot managed to make a profit of 1.81% 
Price swings were huge, at one time price was as low as 7.34 EUR/BTC at other time almost 10 EUR/BTC Note that this bot is not working for shareholders yet.
Price swings were huge, at one time price was as low as 7.34 EUR/BTC at other time almost 10 EUR/BTC Note that this bot is not working for shareholders yet. This would be true in case we decided to close down the operation and spent all dollars to buy BTC and pay them to shareholders. But if the bot is working and price swingsin the range he is covering, he is making money, no matter what is the price of BTC. Also when I move the range upwards, no money is lost, cause the dollar value of each order is constant and bot is keeping revenue on BTC side (always spending available dollar balance first).
Absolutely key.
Quick suggestion for a feature to add to your bot that I've seen be very VERY successful on MtGox bots:
Look at bid/ask spread - if looking to make a buy order place 0.01BTC sell orders very close to the buy price.
There are a surprising number of people on MtGox who will look at a spread like that, see the most recent sale price and place an order at that, because they're making a regular exchange rather than speculating and they just want it to go through quickly.
Then, as soon as sell volume appears at that price, you buy into it.
You can do the exact same thing in reverse when making sales. Taking advantage of the lack of "depth perception" of "casual" traders can make you a fairly tidy profit on the exchange, whereas a bot as simple as yours seems more likely to see steady growth eventually followed by catastrophic loss.
What do you mean by catastrophic loss?
All the revenue bot makes is kept on the BTC side, so he will not make a loss until after operation is closed down at the high price and I will need to convert fiat to BTC. Your proposed strategy is risky and on MtGox your bait order will be consumed faster than anyone will notice. BTW, I have currently around 1500 very small orders (around 0.01 BTC each) covering the whole range, so I don't see how I could even implement your suggestion. It's not easy to fool the market. This is volatility bot, taking advantage of price movements and it will stay so. You're free to create your own bot and compete with mine This would be true in case we decided to close down the operation and spent all dollars to buy BTC and pay them to shareholders. But if the bot is working and price swingsin the range he is covering, he is making money, no matter what is the price of BTC. Also when I move the range upwards, no money is lost, cause the dollar value of each order is constant and bot is keeping revenue on BTC side (always spending available dollar balance first).
Absolutely key.
Quick suggestion for a feature to add to your bot that I've seen be very VERY successful on MtGox bots:
Look at bid/ask spread - if looking to make a buy order place 0.01BTC sell orders very close to the buy price.
There are a surprising number of people on MtGox who will look at a spread like that, see the most recent sale price and place an order at that, because they're making a regular exchange rather than speculating and they just want it to go through quickly.
Then, as soon as sell volume appears at that price, you buy into it.
You can do the exact same thing in reverse when making sales. Taking advantage of the lack of "depth perception" of "casual" traders can make you a fairly tidy profit on the exchange, whereas a bot as simple as yours seems more likely to see steady growth eventually followed by catastrophic loss.
Added stats for the forth week of running bot at MtGox EUR market. First 2 days were pretty volatile, price went down, so bot made some coins when buying lower then he sold last week. The rest of this week was calm, except for today, when MtGox had some problems with disappearing orders on ask side (bot made some advantage of the price swings, though his orders were also vanishing most of the time).
Tomorrow is IPO so you may grab some shares if you want. Money from IPO will primarily go to bot that will work on USD market. If enough shares are sold than bot working on EUR market will get additional funds to work with. BitcoinCentral bot is still being tested, I will post his stats tomorrow, so far he's made 0.89%. After all IPO shares are sold and bot will be ready for some real trading I will raise a motion to sell additional shares to get some coins for him to work with.
Tomorrow is IPO so you may grab some shares if you want. Money from IPO will primarily go to bot that will work on USD market. If enough shares are sold than bot working on EUR market will get additional funds to work with. BitcoinCentral bot is still being tested, I will post his stats tomorrow, so far he's made 0.89%. After all IPO shares are sold and bot will be ready for some real trading I will raise a motion to sell additional shares to get some coins for him to work with.
I added stats for the third week of running bot at MtGox EUR market. In this period price went just straight up, there were only a few swings back, so the dividend is quite low. Tomorrow I will add weekly stats for bot running at BitcoinCentral, so far it has earned almost 0.4%.
So this bot basically waits for a wide gap and tries to be the winning bid on both sides of the spread?
He's making money on volatility. Always having gap between orders on the USD side and the BTC side, buying low and selling high. The higher the volatility (up and down swings), the higher the returns.
Bot is very secure, never makes a loss, makes money on volatility.
People claiming "never makes a loss" make me very nervous.....
Just saying.
The code itself is very simple. Bot is just inserting orders when he finds out that the gap between maximum EUR and minimum BTC order is bigger than it should be. He's always buying low and selling high, he cannot make any loss by design. There are no complicated calculations for orders placing. I can put into contract, that I will personally cover any losses that will be caused by unexpected bot behaviour. Of course there is a chance that MtGox itself will close down and block the funds, that case I cannot cover.
I will run the bot for a couple of weeks more to see how it performs. Then I plan to issue shares for just 100 BTC for starters, then maybe expand to other markets (USD, GBP) or maybe to other exchanges. Depends on decision of shareholders, if it will come to that.
Example:
Bid is $8.50 and ask is $9.00. This is a nice spread so your bot places and ask at $8.99 and a bid at $8.51. Your ask gets hit, selling for $8.99, and then the price continues to increase, never returning to <$9. You how hold some dollars from selling BTC for cheap and the value of your account in BTC is lower overall.
This would be true in case we decided to close down the operation and spent all dollars to buy BTC and pay them to shareholders. But if the bot is working and price swings in the range he is covering, he is making money, no matter what is the price of BTC. Also when I move the range upwards, no money is lost, cause the dollar value of each order is constant and bot is keeping revenue on BTC side (always spending available dollar balance first).
Did you see what happened to TYGRR-BOT? Fees ate most of the profits.
That was an arbitrage bot that needed to move fiat between exchanges to function, entailing all the fees etc that go with that. I don't think the cost of the trading commissions were really the problem.
So this bot basically waits for a wide gap and tries to be the winning bid on both sides of the spread?
Bot is very secure, never makes a loss, makes money on volatility.
People claiming "never makes a loss" make me very nervous.....
Just saying.
The code itself is very simple. Bot is just inserting orders when he finds out that the gap between maximum EUR and minimum BTC order is bigger than it should be. He's always buying low and selling high, he cannot make any loss by design. There are no complicated calculations for orders placing. I can put into contract, that I will personally cover any losses that will be caused by unexpected bot behaviour. Of course there is a chance that MtGox itself will close down and block the funds, that case I cannot cover.
I will run the bot for a couple of weeks more to see how it performs. Then I plan to issue shares for just 100 BTC for starters, then maybe expand to other markets (USD, GBP) or maybe to other exchanges. Depends on decision of shareholders, if it will come to that.
Example:
Bid is $8.50 and ask is $9.00. This is a nice spread so your bot places and ask at $8.99 and a bid at $8.51. Your ask gets hit, selling for $8.99, and then the price continues to increase, never returning to <$9. You how hold some dollars from selling BTC for cheap and the value of your account in BTC is lower overall.
Did you see what happened to TYGRR-BOT? Fees ate most of the profits.
I would be very interested in such an asset. As you said, glbse is all about mining and pirate asset right now, we could use a little diversification.
I added some performance statistics for MtGox bot working on EUR market for first two weeks of operation. I payed 8 BTC for asset creation (was 2 days ago, still not on IPO page though). IPO is planned for 10-Aug-2012. I will issue 2000 shares for 0.1 BTC each. Around 250-300 will I buy myself, rest will go for public sale. I will run 2 bots at starters, one at MtGox EUR market with 50 BTC and one at MtGox USD market with approximately 150 BTC.
I already created 3rd bot that is working on Bitcoin Central currently, but that one needs more testing and performance statistics gathering before I can release it. There's no trading API at Bitcoin Central and I have to parse HTML pages, so it needs more testing for safe operation. Also I didn't figure out yet how to secure that account with 2-factor authentication and let the bot work on that exchange at the same time. On the other hand, Bitcoin Central charges no fees, so profits are potentially higher. I will definitely not release this bot before the IPO. There will need to be a motion if we will issue more shares to raise funds for this bot or not.
I already created 3rd bot that is working on Bitcoin Central currently, but that one needs more testing and performance statistics gathering before I can release it. There's no trading API at Bitcoin Central and I have to parse HTML pages, so it needs more testing for safe operation. Also I didn't figure out yet how to secure that account with 2-factor authentication and let the bot work on that exchange at the same time. On the other hand, Bitcoin Central charges no fees, so profits are potentially higher. I will definitely not release this bot before the IPO. There will need to be a motion if we will issue more shares to raise funds for this bot or not.
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