Bitcoin Forum

Economy => Trading Discussion => Topic started by: Reggie Middleton on February 11, 2015, 07:36:21 PM



Title: How to Use Bitcoin To Trade Macro Trends in Stocks, Bonds, Commodities & Forex
Post by: Reggie Middleton on February 11, 2015, 07:36:21 PM
The Veritaseum bitcoin wallet now allows users to lever up to 10,000x to trade stocks, bonds, currencies (and pairs, and major cryptocurrencies).We are offering over 45,000 tickers in all of these asset classes, through all major exchanges.

You can download our Excel-based trade designer to help you design trades and simulate their expected outcomes. The spread sheet, the UltraCoin bitcoin wallet (this is a pure, smart contract-driven bitcoin wallet, not an alt-coin, token, or sidechain - 100%, pure, unadulterated BITCOIN). and associated research here: http://ultra-coin.com/index.php/download-beta  (http://ultra-coin.com/index.php/download-beta)

To demonstrate the depth and quality of the research that went into the design and implementation of this system, read this article on using it to monetize the possibility of the Danish central bank breaking the krone's peg to the euro. For those who don't know, when the Swiss central bank did the same thing last month, it drove many forex houses out of business and pushed many hedge funds into a loss for the year. See http://ultra-coin.com/index.php/homes/item/89-is-the-danish-krona-peg-to-euro-more-fragile-than-glass-beads-the-danish-national-bank-infers-so (http://ultra-coin.com/index.php/homes/item/89-is-the-danish-krona-peg-to-euro-more-fragile-than-glass-beads-the-danish-national-bank-infers-so)

http://ultra-coin.com/images/Long_the_Danish_Krona_in_UltraCoin_client.png


Title: Re: How to Use Bitcoin To Trade Macro Trends in Stocks, Bonds, Commodities & Forex
Post by: Elijah5692 on February 11, 2015, 07:58:07 PM
I saw this post on ZeroHedge and was wondering if there is a reason for the rampant disbelief in the capabilities of Bitcoin enabled financial products. I put some funds into the wallet and played with the product and realized the possibilities after a significant gain on my swap with RUSL/RUSS. The potential is definitely there it just needs more user traffic.


Title: Re: How to Use Bitcoin To Trade Macro Trends in Stocks, Bonds, Commodities & Forex
Post by: Reggie Middleton on February 11, 2015, 08:38:52 PM
A lot of people are suspicious of things that they do not understand. Thus, my our primary responsibility is education. We have to teach the Bitcoin literati exactly what Bitcoin is capable of WITHOUT resorting to tokens, altcoins and sidechains. We have to teach the broader financial community that Bitcoin is capable of much more than mere payments and plain vanilla trading for fiat. We need to teach the lay person that our system is strong, safer, and more flexible/transparent than legacy systems. And finally, we need to teach the regulators that Bitcoin is not the bogeyman that the media is making it out to be. Actually, our system makes the regulators job much easier as long as they don't overdo it on the regulation.

As for what it can do, these are some of the screen shots from our spreadsheet-based trade setup model (what all newbies should be using to setup trades in their UltraCoin wallet).

http://ultra-coin.com/images/Coins/Krona_lonb_model_results.png
In case your wondering, the absolute net payout is bounded by what you put in (principal+collateral). If you increase that amount, you increase the amount you are able to claim from your counterparty. The leverage allows this (or the opposite, a loss) to happen very, very quickly if you ratchet it up. The collateral is just that, collateral - and is return to you as yours if it is unused. It's purpose is to allow you to stay in the trade if your original principal is eaten up and to guarantee that your counterparty gets paid up to the "smart contract"ual limits. The more you pay, the more can play!

Of those that are amazed, there are probably some of you saying, "That's cool and all, but  I don't want to trade through or have any exposure to bitcoin price volatility." Well, for one, the entire interface can be expressed in the (major) fiat currency of your choice. More importantly, the sytem does a lot to quell the noise of bitcoin. It's almost as if it wasn't there.
This is the result of this trade when bitcoin drops 10% mid-trade...
http://ultra-coin.com/images/Coins/bitc_drops_10_on_Krone_long_trade.png

 This is what happens if BTC were to go catastrophic and collapse 40% during the trade...

http://ultra-coin.com/images/Coins/bitc_drops_40_on_Krone_long_trade.png

Yes! You still profit roughly 9%. There are a plethora of other advantages to this "bitcoin" wallet as well...
http://ultra-coin.com/images/Coins/UltraCoin_summary.png