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Perhaps its obvious but I guess there are several bots doing arbitrage between mtgox and tradehill, if so shoudn't be tradehill leading the price fluctuations because of the smaller market? Meaning that buying 100 btc in TH rises the price higher that in Mtgox.
Ok i guess i'm wrong, please clarify. I'm asking this because I think that if someone would want to represent in a buying strategy an upward trend, he might try it on the smaller market right?
Ok i guess i'm wrong, please clarify. I'm asking this because I think that if someone would want to represent in a buying strategy an upward trend, he might try it on the smaller market right?
I've found that exact trading strategy discussed on http://cryptocurrencyarbitrage.net/day-trading-cryptocurrency/
Basically if you are a day trader it makes sense to find a way to already start you trade in a profit.
For example if Ethereum is trading at $500 on exchange #1 and trading at $550 on exchange #2 then you can just buy on exchange #1, transfer to exchange #2 and either take the profits immediately or use the 10% as a buffer for a winning trade.
That way you have the ability to set a stop loss at $525 and if you get hit you are still in profit.
If you don't get hit then you can watch you trade multiply without the stress of it dipping under your initial investment.
The strategy is discussed in more detail on the site above
