The Bitcoin Trading Group - page 2. | Bitcointalksearch.org

FXTrader

newbie

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Quote from: DonnyCMU on September 15, 2011, 09:39:34 PM

Cycle begins in 48 hrs? I'm interested too.

Quote from: FXTrader on September 14, 2011, 07:01:38 PM

2. We will trade in the hopes of growing the bitcoin balance of individual participants

But one more question, is your goal to maximize the USD value of the account, not the number of Bitcoin in account, right?
For example, if BTC/USD are to slide down to $2 over the next month, it wouldn't be consider a profit even if you manage to double the amount of bitcoin we have.

The objective of the program is to maximize your BTC, not your USD. If the exchange rate slides $2 over the next month, I will seek to be out of BTC and in USD. By so doing, we will ultimately be preserving your buying power in whichever currency you chose to use, but that is secondary to our primary objective - maximize your BTC wealth.

DonnyCMU

full member

Activity: 143

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Cycle begins in 48 hrs? I'm interested too.

Quote from: FXTrader on September 14, 2011, 07:01:38 PM

2. We will trade in the hopes of growing the bitcoin balance of individual participants

But one more question, is your goal to maximize the USD value of the account, not the number of Bitcoin in account, right?
For example, if BTC/USD are to slide down to $2 over the next month, it wouldn't be consider a profit even if you manage to double the amount of bitcoin we have.

FXTrader

newbie

Activity: 42

Merit: 0

Quote from: Yankee (BitInstant) on September 15, 2011, 10:54:49 AM

Quote from: FXTrader on September 15, 2011, 10:27:30 AM

Quote from: Yankee (BitInstant) on September 15, 2011, 10:11:57 AM

Is there a difference in your commission for a higher volume account?

For example, Id I gave you my api key to one of my accounts, letting you trade with 10k USD to start, will you take the same commission from me as you would an account with $500.00 ?

-Charlie

Charlie,

I will answer this question for both performance and account commission:

1. Performance commission - My performance commission is based on the bitcoin I was able to generate in your account. I am trying to generate BTC profit for individuals who are following our trading account.

2. Mt. Gox commission - this is for your account and varies with your volume, but my performance commission is after your Mt. Gox commission. So my performance incentive is your gains net Mt. Gox commissions.

I prefer accounts to be opened in bitcoin. My performance commission is based on the bitcoin I generated in your account. At the end of a trading cycle, I will "flatten" my positions by buying bitcoin so if your objective is to maximize USD, I would suggest different trading programs.

Ok, I may open a new account and buy 1000 BTC to start, have you started the cycle yet?

The first investment cycle will begin in the next 48 hours. The first trade will happen as soon as the market presents a trading opportunity.

Yankee (BitInstant)

legendary

Activity: 1078

Merit: 1000

Charlie 'Van Bitcoin' Shrem

Quote from: FXTrader on September 15, 2011, 10:27:30 AM

Quote from: Yankee (BitInstant) on September 15, 2011, 10:11:57 AM

Is there a difference in your commission for a higher volume account?

For example, Id I gave you my api key to one of my accounts, letting you trade with 10k USD to start, will you take the same commission from me as you would an account with $500.00 ?

-Charlie

Charlie,

I will answer this question for both performance and account commission:

1. Performance commission - My performance commission is based on the bitcoin I was able to generate in your account. I am trying to generate BTC profit for individuals who are following our trading account.

2. Mt. Gox commission - this is for your account and varies with your volume, but my performance commission is after your Mt. Gox commission. So my performance incentive is your gains net Mt. Gox commissions.

I prefer accounts to be opened in bitcoin. My performance commission is based on the bitcoin I generated in your account. At the end of a trading cycle, I will "flatten" my positions by buying bitcoin so if your objective is to maximize USD, I would suggest different trading programs.

Ok, I may open a new account and buy 1000 BTC to start, have you started the cycle yet?

FXTrader

newbie

Activity: 42

Merit: 0

Quote from: Yankee (BitInstant) on September 15, 2011, 10:11:57 AM

Is there a difference in your commission for a higher volume account?

For example, Id I gave you my api key to one of my accounts, letting you trade with 10k USD to start, will you take the same commission from me as you would an account with $500.00 ?

-Charlie

Charlie,

I will answer this question for both performance and account commission:

1. Performance commission - My performance commission is based on the bitcoin I was able to generate in your account. I am trying to generate BTC profit for individuals who are following our trading account.

2. Mt. Gox commission - this is for your account and varies with your volume, but my performance commission is after your Mt. Gox commission. So my performance incentive is your gains net Mt. Gox commissions.

I prefer accounts to be opened in bitcoin. My performance commission is based on the bitcoin I generated in your account. At the end of a trading cycle, I will "flatten" my positions by buying bitcoin so if your objective is to maximize USD, I would suggest different trading programs.

FXTrader

newbie

Activity: 42

Merit: 0

Quote from: aq on September 15, 2011, 08:47:50 AM

What happens if I add/withdraw funds or even trade while you are at the trading phase? Just asking.

At this stage, I will more than likely just remove that account from participation until the next cycle. If I have a position on and the account holder disagrees with it and sells out, at the end of the cycle, there could be a debate of who actually generated any profit or loss.

Yankee (BitInstant)

legendary

Activity: 1078

Merit: 1000

Charlie 'Van Bitcoin' Shrem

Is there a difference in your commission for a higher volume account?

For example, Id I gave you my api key to one of my accounts, letting you trade with 10k USD to start, will you take the same commission from me as you would an account with $500.00 ?

-Charlie

aq

full member

Activity: 238

Merit: 100

What happens if I add/withdraw funds or even trade while you are at the trading phase? Just asking.

FXTrader

newbie

Activity: 42

Merit: 0

Quote from: Isepick on September 15, 2011, 08:19:12 AM

Is initial funding of the account only in Bitcoins?

It does not have to be. My personal preference is that it is in bitcoin, but a USD account is fine as well.

FXTrader

newbie

Activity: 42

Merit: 0

Quote from: aq on September 15, 2011, 06:22:51 AM

Quote from: FXTrader on September 14, 2011, 08:01:51 PM

1. Past performance - 9.85% return this month in my personal account. In my other trading activities I made 2.5% in July and 2.6% in August. As a trader my first priority is to manage risk, so I only enter trades with the exit already located and sufficient liquidity in the market.

Is this performance in USD or in BTC?

Other trading activities is in USD. The BTC trading is currently a 9.85% profit in USD with a floating profit of 29% in bitcoin.

FXTrader

newbie

Activity: 42

Merit: 0

Quote from: Clark on September 15, 2011, 12:31:36 AM

Quote from: FXTrader on September 15, 2011, 12:06:34 AM

Quote from: Narydu on September 14, 2011, 11:51:54 PM

Given there might be losses, how does one manages the maximum loss alowed for you to have?

The maximum loss really is determined by you since it is your account in the first place. If the drawdown exceeds a comfort level, feel free to close the account and move your bitcoin back to your main account. This said, all BTC in management should be speculative by nature.

Or I could simply revoke access to the API token you have on hand from within the MtGox interface.

Yes, that is a way to close the account. The platform I trade on will automatically reflect your withdrawn bitcoin so I will immediately trade as though that bitcoin were no longer in the balance.

Isepick

full member

Activity: 180

Merit: 100

Is initial funding of the account only in Bitcoins?

aq

full member

Activity: 238

Merit: 100

Quote from: FXTrader on September 14, 2011, 08:01:51 PM

1. Past performance - 9.85% return this month in my personal account. In my other trading activities I made 2.5% in July and 2.6% in August. As a trader my first priority is to manage risk, so I only enter trades with the exit already located and sufficient liquidity in the market.

Is this performance in USD or in BTC?

Clark

hero member

Activity: 548

Merit: 502

So much code.

Quote from: FXTrader on September 15, 2011, 12:06:34 AM

Quote from: Narydu on September 14, 2011, 11:51:54 PM

Given there might be losses, how does one manages the maximum loss alowed for you to have?

The maximum loss really is determined by you since it is your account in the first place. If the drawdown exceeds a comfort level, feel free to close the account and move your bitcoin back to your main account. This said, all BTC in management should be speculative by nature.

Or I could simply revoke access to the API token you have on hand from within the MtGox interface.

FXTrader

newbie

Activity: 42

Merit: 0

Quote from: Narydu on September 14, 2011, 11:51:54 PM

Given there might be losses, how does one manages the maximum loss alowed for you to have?

The maximum loss really is determined by you since it is your account in the first place. If the drawdown exceeds a comfort level, feel free to close the account and move your bitcoin back to your main account. This said, all BTC in management should be speculative by nature.

Narydu

donator

Activity: 743

Merit: 510

Given there might be losses, how does one manages the maximum loss alowed for you to have?

FXTrader

newbie

Activity: 42

Merit: 0

Quote from: DonnyCMU on September 14, 2011, 07:46:13 PM

Interesting. I have a few questions:
- Would you mind to show your past performance in Bitcoin trading?
- Can you explain how the 'mimick' part works?
- How much control would one have with the Mt.Gox API key? They would be able to execute trades, but couldn't possibly make withdrawal/deposit, right?

Thanks

Edit: yeah forget to ask about this 'high-watermark' point.

Quote from: FXTrader on September 14, 2011, 07:01:38 PM

requesting a 10% performance fee on all gains from trading activities. We will operate on an investment cycle – typically a week to a month.

So do you charge 10% of profit gained at the end of the investment cycle? Or charge 10% of the profit at the moment where the account's value is highest in the investment cycle?
For example, if the account did well and gained 20% early in the month, but didn't do so well afterward and ends the cycle with 10% loss, would you still charge fees from the unrealized gain at the peak, or won't charge anything because the account actually loss value at the end.

Reply to edit:

At the end of the investment cycle, I charge a 10% fee of (final balance - initial balance) if it is greater than 0. Your high watermark is set at the highest level I put your account. So let's say we go from 1,000 bitcoin to 2,000 bitcoin and back down to 1,100 bitcoin - my performance fee is 10 (10% of 100 profit) bitcoin and your high watermark is 2,000 bitcoin. I will not make another bitcoin from your account until I push you above 2,000 bitcoin.

FXTrader

newbie

Activity: 42

Merit: 0

Quote from: im3w1l on September 14, 2011, 08:11:08 PM

Sometimes, I feel more lazy than I feel paranoid. Would it be possible to give you api access to withdraw/deposit, so that I would not have to pay invoice manually?

No. This is an operational risk I don't want to be exposed to. Later down the road, possibly but until I can manage the risk of it, this is a trade I don't want to take

FXTrader

newbie

Activity: 42

Merit: 0

Quote from: Clark on September 14, 2011, 08:05:27 PM

Quote from: FXTrader on September 14, 2011, 08:01:51 PM

I will just request a fee for any profit I generate on a high watermark which you will voluntarily send me.

What is the 'high watermark'?

A high watermark is basically a term which says, "I have to make money for you before I get paid". It's a point equal to the highest value your account has been under my management.

Example - You start out with 10,000 bitcoin. I trade your account up to 11,000 bitcoin and I take a 100 bitcoin performance fee, so your balance is 10,900. The high water mark is 11,000. I will not receive any bitcoin from you until I push your account above 11,000 bitcoin.

DonnyCMU

full member

Activity: 143

Merit: 100

Quote from: im3w1l on September 14, 2011, 08:11:08 PM

Sometimes, I feel more lazy than I feel paranoid. Would it be possible to give you api access to withdraw/deposit, so that I would not have to pay invoice manually?

Why don't you give me your API access to withdrawal, and I'll manually pay the invoice on your behalf Grin

Topic: The Bitcoin Trading Group - page 2. (Read 4365 times)