Bitcoin Forum
May 07, 2024, 12:01:43 PM *
News: Latest Bitcoin Core release: 27.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Opensource tradebot to guard Bitcoin against speculation (and hyperdeflation)  (Read 1008 times)
rhythmvs (OP)
Newbie
*
Offline Offline

Activity: 1
Merit: 0


View Profile
April 05, 2013, 04:19:46 PM
 #1

1. Build an algorithmic Bitcoin trading bot (aka black-box): minimize risk, maximize profit, optimize speculative gain.
2. Opensource it.
3. Observe bankers, traders, speculators (plus, who knows, systemic powers) jump on it. (Temporarily, they’ll profit even more. Accept it.)
4. Since the tradebot performs better at optimizing profits, it has increasingly more liquidity to embay/withdraw than an irrational individual.
5. Since the bots all behave likewise (performing the same best algo), they balance each other.
6. Eventually, independent selfinterest-optimizing trading bots will outnumber human traders driven by panic/greed.
7. Resulting in a distributed “botnet” that behaves as an automated stabilizer for fluctuations in the Bitcoin exchange rate. An invisible hand.
8. Bitcoin will be more stable than any other currency and its exchange rate will reflect its true intrinsic value.
9. Rejoice: Adam Smith to the benefit of cypherpunk anarcho-libertarianism!

Just my two cents. I’m a total BTC noob, not especially good at game theory math, and, at best, a wannabe hacker. What do you think: naive idea?
1715083303
Hero Member
*
Offline Offline

Posts: 1715083303

View Profile Personal Message (Offline)

Ignore
1715083303
Reply with quote  #2

1715083303
Report to moderator
1715083303
Hero Member
*
Offline Offline

Posts: 1715083303

View Profile Personal Message (Offline)

Ignore
1715083303
Reply with quote  #2

1715083303
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
1715083303
Hero Member
*
Offline Offline

Posts: 1715083303

View Profile Personal Message (Offline)

Ignore
1715083303
Reply with quote  #2

1715083303
Report to moderator
1715083303
Hero Member
*
Offline Offline

Posts: 1715083303

View Profile Personal Message (Offline)

Ignore
1715083303
Reply with quote  #2

1715083303
Report to moderator
1715083303
Hero Member
*
Offline Offline

Posts: 1715083303

View Profile Personal Message (Offline)

Ignore
1715083303
Reply with quote  #2

1715083303
Report to moderator
whiskers75
Hero Member
*****
Offline Offline

Activity: 658
Merit: 502


Doesn't use these forums that often.


View Profile
April 05, 2013, 04:25:59 PM
 #2

Nice idea Wink
It would be cool if that happened! Why don't you try to make one, and see what turns up? Smiley

Elastic.pw Elastic - The Decentralized Supercomputer
ELASTIC ANNOUNCEMENT THREAD | ELASTIC SLACK | ELASTIC FORUM
bitfoo
Donator
Sr. Member
*
Offline Offline

Activity: 289
Merit: 250



View Profile
April 06, 2013, 04:31:20 AM
 #3

1. Build an algorithmic Bitcoin trading bot (aka black-box): minimize risk, maximize profit, optimize speculative gain.
2. Opensource it.
3. Observe bankers, traders, speculators (plus, who knows, systemic powers) jump on it. (Temporarily, they’ll profit even more. Accept it.)

It's a nice thought, but if your bot's trading strategy is public, it'll be quite easy to game it or to front-run the bot to your disadvantage. Also, in a trending market, uninformed bots that try to add liquidity and damp out the noise will typically be overrun by people with knowledge of the true fundamentals.

Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!