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Since there's too many mining and pirate related securities I'm curious if there would be a demand for something like this.
I'm considering creating a security for my MtGox volatility trading bot I created recently. Bot is very secure, never makes a loss, makes money on volatility. The bigger the market volatility, the bigger the returns. But according to my calculations ROI is pretty low. On a high volatile market (like the one this week and last week), it would yield up to 0.6-0.8% per week (I already substracted 10% management fees from that), but usually less than 0.5%. Profits should improve if there's bigger trade volume, currently bot pays 0.6% fee per trade as the trade volume is less than 100 BTC. For trade volume > 100 BTC, MtGox charges only 0.55% etc.
Bot is working on EUR/BTC market and has orders in the range between 3 EUR/BTC to 10 EUR/BTC (current price is around 7 EUR/BTC). If the price is swinging in this range bot is making money. If the price will go upwards of 10 EUR/BTC that shouldn't be a problem because all the profit is always on the BTC side (bot is always buying first if there's available EUR balance) and each order is valued at the EUR price, so I can move the range upwards without losing money. If price will go downwards of 3 EUR/BTC there will be a decision to make if to move the range downwards and lose some profit or close down the operation and return the money.
MtGox account will of course be protected by 2-factor authentication and withdrawals through API will be blocked.
I will setup this as a company with voting rights. I plan to issue
Any questions, ideas?
Bots funds:
| Bot | Approximate value of funds | Current Trade Fee |
| ----------------------- | --------------------------------- | ----------------------- |
| MtGox USD | 150 BTC | 0.53% |
| MtGox EUR | 50 BTC | 0.55% |
| BitcoinCentral EUR | 70 BTC | 0% |
Bots performance:
| Week | Start Date | End Date | Profit (BTC) | Management Fee (10%) | Dividend per share | ROI per week | |
| --------- | ------------ | ------------ | ---------------- | --------------------- | --------------------- | ----------------- | |
| 1 | 13.7.2012 | 19.7.2012 | 0.201616 | 0.020162 | 0.000726 | 0.73% | |
| 2 | 20.7.2012 | 26.7.2012 | 0.173569 | 0.060423 | 0.000625 | 0.62% | |
| 3 | 27.7.2012 | 2.8.2012 | 0.029527 | 0.002953 | 0.000106 | 0.11% | |
| 4 | 3.8.2012 | 9.8.2012 | 0.076204 | 0.007620 | 0.000274 | 0.27% | |
| 5 | 10.8.2012 | 16.8.2012 | 0.231258 | 0.023126 | 0.000139 | 0.14% | <= added bot working on MtGox USD market |
| 6 | 17.8.2012 | 23.8.2012 | 13.974017 | 1.397402 | 0.006288 | 6.29% | <= market crash and very high volatility |
| 7 | 24.8.2012 | 30.8.2012 | 1.523698 | 0.152370 | 0.000686 | 0.69% | |
| 8 | 1.9.2012 | 6.9.2012 | 0.779619 | 0.077962 | 0.000351 | 0.35% | |
| 9 | 7.9.2012 | 13.9.2012 | 0.892514 | 0.089251 | 0.000298 | 0.30% | <= added bot working on Bitcoin-Central |
| 10 | 14.9.2012 | 20.9.2012 | 0.605584 | 0.060558 | 0.000202 | 0.20% | |
| 10 | 21.9.2012 | 27.9.2012 | 0.40708 | 0.040708 | 0.000136 | 0.14% |
Note that some weeks were very volatile. I expect the average dividend to be below 0.5 % per week (maybe below 0.3% unless there'll be higher trade volumes).
Contract:
GMVT Trading Bot asset (GMVT-BOT) was created with the intent to give investors the opportunity to participate in operation of a trading bot. GMVT Trading Bot is operating on bitcoin exchanges (currently at MtGox only but may expand to other in the future). Each share in this asset represent share in the ownership of funds the bot is operating with and share on the revenue. 10% of the profits bot makes will go to the asset operator who will cover all operating costs (electricity, management etc.). Operator will also cover any loss that may result from unexpected bot behaviour. On the other hand, operator is not responsible for funds that may be lost due to particular BTC exchange default and funds blockage.
The operator reserves the rights, regardless of the amount of shares owned, to raise a motion, and close down the operation. At least 60% of the shareholders will need to agree for a motion to be valid. In the event of liquidation, all available funds the bot is operating with will be converted to BTC and will be distributed to shareholders.
Dividends will be paid at least once per month.
BTW, total market capitalization of these top 20 assets is 185704.31 BTC.
