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Author Topic: [CANCELLED] High Frequency Trading Algorithm ETF IPO  (Read 5921 times)
stslimited
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April 22, 2013, 12:36:49 AM
 #1

September 4th 2013 edit: Pursuing this particular asset has been cancelled. The algorithm was used instead on cryptocurrency stock exchanges and was able to make a profit of several hundred percent in three months. Future offerings will be structured with more regulatory scrutiny in mind, as well as the improvements in the bitcoin securities community.



=============== Original post =============


This is an IPO of an exchange traded fund (ETF). The underlying asset is the profit of a high frequency trading (HFT) algorithm created by State Trading Society (STS Ltd.)

STS Ltd. engages in algorithmic trading and derivatives research. The company’s trading algorithms currently run on electronic exchanges such as Nasdaq, BATS, EDGE, NYSE, and BTC-E.

The cryptocurrency market is engaging because there are no settlement times for trades and no limitation on market trading hours, allowing for a greater frequency of trades to occur as liquidity improves. This algorithm will be trading on usd and cryptocurrency markets.

Net Asset Value (NAV) of a share will be posted weekly priced in Bitcoin and in shorter intervals as the market grows.

Holders of interests in the ETF will benefit from the appreciation of the NAV and special dividends.

Share capital is used directly for the trading algorithm. This is a computerized operation whose funding (for this ETF) will be from the ground up, much like how the mining companies operate. STS Ltd. will cover the IPO listing fees.

Specifications:
Exchange for listing: BTCT.CO BTC Trading Corp.
Shares: 100,000
Price: .20 bitcoins, but tbd by free market
Dividends: Quarterly or special dividends, TBD

Anybody that has ever lost money trading should understand the implications of this fund and why it would be good for them.

Transferring ownership of shares can continue even if the exchange goes down.

If there are any questions, skepticism or concerns, please PM me. This thread will be used to judge sentiment and post NAV.

Risk Disclosure and how this fund mitigates them:
Currency Risk - The algorithm will be trading in bitcoin markets as well as usd markets, and at limited times also be holding other cryptocurrencies while engaging in pair trades. The main volatility of these holdings will come from the bitcoin to usd exchange price, as there will be significant holdings priced in usd on usd exchanges. The fund will seek to hedge bitcoin volatility in relation to the USD holdings with forward delivery.

Liquidity Risk - The amount of liquidity in cryptocurrency exchanges can be limited, especially in alternate currencies. The algorithm mitigates this by calculating optimal position sizes which are a fraction of the portfolio. The algorithm reads the order books and dynamically creates orders.

Software Risk - Exchanges can change their API. Bitcoin and cryptocurrency exchanges are not as established as other capital markets.


Regulatory Disclosure:
This security is not marketed to US citizens. If only there was some sort of foreign bitcoin stock exchange where people could purchase shares with nothing but an email and bitcoin address.  Roll Eyes


TO DO:
- Historical performance, case study
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April 22, 2013, 12:53:41 AM
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This is an IPO of an exchange traded fund (ETF). The underlying asset is the profit of a high frequency trading (HFT) algorithm created by State Trading Society (STS Ltd.)

STS Ltd. engages in algorithmic trading and derivatives research. The company’s trading algorithms currently run on electronic exchanges such as Nasdaq, BATS, EDGE, NYSE, and BTC-E.

The cryptocurrency market is engaging because there are no settlement times for trades and no limitation on market trading hours, allowing for a greater frequency of trades to occur as liquidity improves.

Net Asset Value (NAV) of a share will be posted weekly priced in Bitcoin and in shorter intervals as the market grows.

Holders of interests in the ETF will benefit from the appreciation of the NAV and special dividends.

Share capital is used directly for the trading algorithm. This is a computerized operation whose funding will be from the ground up, much like how the mining companies operate. STS Ltd. will cover the IPO listing fees.

Specifications:
Exchange: BTCT.CO BTC Trading Corp.
Shares: 100,000
Price: .20 bitcoins, but tbd by free market
Dividends: Quarterly or special dividends, TBD

Anybody that has ever lost money trading should understand the implications of this fund and why it would be good for them.

Transferring ownership of shares can continue even if the exchange goes down.

If there are any questions or concerns, please PM me. I would like to address skepticism outside of the public fora, this thread will be used to judge sentiment and post NAV.

Regulatory Disclosure: This security is not marketed to US citizens. If only there was some sort of foreign bitcoin stock exchange where people could purchase shares with nothing but an email and bitcoin address.  Roll Eyes


There is so much wrong with this, I hope others can step in cause I'm short on time.

I would like to address skepticism outside of the public fora, this thread will be used to judge sentiment and post NAV.

Too bad its not about what you like.

Btw side note, if you want to get something real started someday, come to -assets, learn, and maybe...

stslimited
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April 22, 2013, 01:07:12 AM
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This is an IPO of an exchange traded fund (ETF). The underlying asset is the profit of a high frequency trading (HFT) algorithm created by State Trading Society (STS Ltd.)

STS Ltd. engages in algorithmic trading and derivatives research. The company’s trading algorithms currently run on electronic exchanges such as Nasdaq, BATS, EDGE, NYSE, and BTC-E.

The cryptocurrency market is engaging because there are no settlement times for trades and no limitation on market trading hours, allowing for a greater frequency of trades to occur as liquidity improves.

Net Asset Value (NAV) of a share will be posted weekly priced in Bitcoin and in shorter intervals as the market grows.

Holders of interests in the ETF will benefit from the appreciation of the NAV and special dividends.

Share capital is used directly for the trading algorithm. This is a computerized operation whose funding will be from the ground up, much like how the mining companies operate. STS Ltd. will cover the IPO listing fees.

Specifications:
Exchange: BTCT.CO BTC Trading Corp.
Shares: 100,000
Price: .20 bitcoins, but tbd by free market
Dividends: Quarterly or special dividends, TBD

Anybody that has ever lost money trading should understand the implications of this fund and why it would be good for them.

Transferring ownership of shares can continue even if the exchange goes down.

If there are any questions or concerns, please PM me. I would like to address skepticism outside of the public fora, this thread will be used to judge sentiment and post NAV.

Regulatory Disclosure: This security is not marketed to US citizens. If only there was some sort of foreign bitcoin stock exchange where people could purchase shares with nothing but an email and bitcoin address.  Roll Eyes


There is so much wrong with this, I hope others can step in cause I'm short on time.

I would like to address skepticism outside of the public fora, this thread will be used to judge sentiment and post NAV.

Too bad its not about what you like.

Btw side note, if you want to get something real started someday, come to -assets, learn, and maybe...

what is going on in the bitcoin-assets channel?

Is the belief that mining companies are the only viable bitcoin share companies, or is it about the wording of the description that can be improved

I would like to iron out the kinks before listing on BTCT.CO
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April 22, 2013, 02:29:30 AM
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A good place to start would be proving that the company exists and has been trading profitably.

Historical financial statements in the format you'd be reporting future ones in would also be useful.

There's no point discussing the detail of your operation until you've proven there actually IS an operation.
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April 22, 2013, 02:38:17 AM
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This ETF performs HFT on btct.co only? That's quite interesting given how there's about 8 trades a hour on btct.co
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April 22, 2013, 03:38:26 AM
 #6

This ETF performs HFT on btct.co only? That's quite interesting given how there's about 8 trades a hour on btct.co

I highly doubt the trading was intended to be on btct.co.

I would like to know what exchanges you are trading on though?  I saw btc-e mentioned.  Are you also trading on gox and vircurex?  I've often wondered if money could be made with some automated multi-exchange algo's.


I'm not a Coinbase fan -- I placed a buy order, they took the funds out of my account, then a week later the price went up and they canceled the buy and closed my account.  You've been warned.  Use a different exchange.
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April 22, 2013, 03:39:20 AM
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This ETF performs HFT on btct.co only? That's quite interesting given how there's about 8 trades a hour on btct.co

no. the ETF will listed on btct.co , thats where people will buy shares.

the HFT performs on BTC-E, NASDAQ, NYSE, BATS, ARCA etc.

bitcoin has the added volatility of swinging at least 10% every 24 hours, this is favorable to a subroutine of the algorithm which is related to the way it places orders.



currently all the bitcoin share companies are all mining companies. this is not a mining company and that is where I see the opportunity.
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April 22, 2013, 03:41:15 AM
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This ETF performs HFT on btct.co only? That's quite interesting given how there's about 8 trades a hour on btct.co

I highly doubt the trading was intended to be on btct.co.

I would like to know what exchanges you are trading on though?  I saw btc-e mentioned.  Are you also trading on gox and vircurex?  I've often wondered if money could be made with some automated multi-exchange algo's.



Mt Gox api is wayyyy too wonky. they turn off the api before they turn off other parts of the site. Mt. Gox is more liquid and can handle larger bitcoin orders though, but the algorithm is doing pair trades between cryptocurrencies as well as trading with USD, making BTC-E the most liquid place to do this.
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April 22, 2013, 04:20:13 AM
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A good place to start would be proving that the company exists and has been trading profitably.

Historical financial statements in the format you'd be reporting future ones in would also be useful.

There's no point discussing the detail of your operation until you've proven there actually IS an operation.

I logged into bitcoin-assets channel and talked to some people about this as well.

Turns out its more a chicken and egg problem, over there they swear by bitcoin-otc's web of trust , yet this is a computer, trading, that has never needed to sign up to a forum.

Fortunately I have been able to talk to some people privately today about actual finance related nuances, and I do like the interest.

It is profitable, but data is limited by chronology.

Bitcoin holdings increased 120% over the past 4 weeks, due to volatility. As in, they were X bitcoins held 4 weeks ago, and now there are X*1.2 bitcoins held. I think that part is attractive since so many people lost their shirts in the speculative bubble, while this algorithm performed well even with the lack of shorting facilities. The trading algorithm for the stock markets are limited by the pattern day trader rule until funded. It has run on a direct market access co-located proprietary trading shop's systems, and performed very well there.



I was also under the impression that the share company listing exchanges help take care of possible accountability issues. But I could be mistaken in this regard.
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April 22, 2013, 04:51:14 AM
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Where is STS Ltd registered?
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April 22, 2013, 05:11:53 AM
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Algorithm... I thought you are developing an algorithm for a trading platform such as Mtgox, so that they can improve their delay and never have a down time any more.

If it is only considering transferring BTC/USD from one exchange to another, I will step aside. However I will appreciate the work you made to balance the BTC/USD ratio everywhere.
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April 22, 2013, 05:49:09 AM
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That is arbitrage, not high frequency trading.
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April 22, 2013, 06:49:26 AM
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Where is STS Ltd registered?

I'd like to know this too before considering investing. Plus proof that you are legitimate and own STS Ltd.
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April 22, 2013, 07:29:51 AM
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the ETF will listed on btct.co , thats where people will buy shares.
the HFT performs on BTC-E, NASDAQ, NYSE, BATS, ARCA etc.

It's an interesting proposal, but you should be aware that getting listed on BTC-TC is not guaranteed. Assets listed on BTC-TC (and litecoin global) have to pass moderator approval before trading. The process is a bit like getting hazed. Quite a few businesses are given a hard time listing, often for no reason. And a lot of scams get pushed through because the moderators don't really know what they're doing and there's no quality control. One of the big problems is there's no real way to answer a moderator's comment. Many moderators vote anonymously, and leave ridiculous or even defamatory comments in their votes. Moderators will often downvote you for something they just voted YES on in another asset. There's no way to complain, and there's no way to strive to meet some minimum standard, because there is no standard. The way you get listed is to be friendly with the mods. In practice it's the only way to get listed there. You can get listed even without providing any contact details or even a real contract, so long as you know the right people.

It's a bit of a crap shoot actually, but I say go for it and don't listen to anyone who tries to discourage you.

(Keep in mind this could be sour grapes on my part -- my own business, SILVER, has 12 downvotes and can't get listed despite being in profitable operation for four months.   Cheesy )
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April 22, 2013, 08:44:00 AM
 #15

Quote
Domestic Limited-Liability Company   
File Number:    2012-000626131
Filing State:    Wyoming (WY)      
Company Age:    9 Months      
Principal Address:       Po Box 20539
New York, NY 10001      
Mailing Address:       Po Box 20539
New York, NY 10001

The level of lol is too high even for a see here link.

My Credentials  | THE BTC Stock Exchange | I have my very own anthology! | Use bitcointa.lk, it's like this one but better.
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April 22, 2013, 09:14:48 AM
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the ETF will listed on btct.co , thats where people will buy shares.
the HFT performs on BTC-E, NASDAQ, NYSE, BATS, ARCA etc.

It's an interesting proposal, but you should be aware that getting listed on BTC-TC is not guaranteed. Assets listed on BTC-TC (and litecoin global) have to pass moderator approval before trading. The process is a bit like getting hazed. Quite a few businesses are given a hard time listing, often for no reason. And a lot of scams get pushed through because the moderators don't really know what they're doing and there's no quality control. One of the big problems is there's no real way to answer a moderator's comment. Many moderators vote anonymously, and leave ridiculous or even defamatory comments in their votes. Moderators will often downvote you for something they just voted YES on in another asset. There's no way to complain, and there's no way to strive to meet some minimum standard, because there is no standard. The way you get listed is to be friendly with the mods. In practice it's the only way to get listed there. You can get listed even without providing any contact details or even a real contract, so long as you know the right people.

It's a bit of a crap shoot actually, but I say go for it and don't listen to anyone who tries to discourage you.

(Keep in mind this could be sour grapes on my part -- my own business, SILVER, has 12 downvotes and can't get listed despite being in profitable operation for four months.   Cheesy )

The hazing is more a forum thing.  We expect forum discussion (Q&A) as part of the approval process.  We realize not everyone can be a pro, so we lean heavily on the pros in the forums asking the hard questions.  This thread is a good example.  It's not always pleasant, but if your business plan is a good one it'll stand up just fine.

Responding to moderators is easy, you just post a response in your thread.  Most, if not all of the mods read the threads.

Not wanting to side-track this thread more than that I'll just add that Usagi has definitely seen more scrutiny than others due to various ongoing controversies.

Feel free to PM me or post any questions you might have about the process.

Cheers.


I'm not a Coinbase fan -- I placed a buy order, they took the funds out of my account, then a week later the price went up and they canceled the buy and closed my account.  You've been warned.  Use a different exchange.
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April 22, 2013, 11:23:12 AM
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I love the drama here in the securities section.
stslimited
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April 22, 2013, 11:32:35 AM
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I love the drama here in the securities section.

yeah both the companies wanting to get listed as well as the listing exchanges get "hazed", this is pretty funny, although time consuming, but probably due to the follies of previous companies

STS Ltd engages in algorithmic trading, software development by the nature of algorithm development, and derivatives research
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April 22, 2013, 11:35:44 AM
 #19

the ETF will listed on btct.co , thats where people will buy shares.
the HFT performs on BTC-E, NASDAQ, NYSE, BATS, ARCA etc.

It's an interesting proposal, but you should be aware that getting listed on BTC-TC is not guaranteed. Assets listed on BTC-TC (and litecoin global) have to pass moderator approval before trading. The process is a bit like getting hazed. Quite a few businesses are given a hard time listing, often for no reason. And a lot of scams get pushed through because the moderators don't really know what they're doing and there's no quality control. One of the big problems is there's no real way to answer a moderator's comment. Many moderators vote anonymously, and leave ridiculous or even defamatory comments in their votes. Moderators will often downvote you for something they just voted YES on in another asset. There's no way to complain, and there's no way to strive to meet some minimum standard, because there is no standard. The way you get listed is to be friendly with the mods. In practice it's the only way to get listed there. You can get listed even without providing any contact details or even a real contract, so long as you know the right people.

It's a bit of a crap shoot actually, but I say go for it and don't listen to anyone who tries to discourage you.

(Keep in mind this could be sour grapes on my part -- my own business, SILVER, has 12 downvotes and can't get listed despite being in profitable operation for four months.   Cheesy )

This was very helpful thanks


yeah so far I have been discouraged by the lack of a "roadshow" that IPOs on real world exchanges go through as part of the process, any opinions about the contents of the IPO are usually made in private by bankers and investors and the IPO packaging is refined. Here I have to post on a forum and thats it.
stslimited
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April 22, 2013, 11:38:35 AM
 #20

Quote
Domestic Limited-Liability Company   
File Number:    2012-000626131
Filing State:    Wyoming (WY)      
Company Age:    9 Months      
Principal Address:       Po Box 20539
New York, NY 10001      
Mailing Address:       Po Box 20539
New York, NY 10001

The level of lol is too high even for a see here link.

spend literally two more seconds on google and you can see it is older than 9 months, but continue with your expert detective work. The HFT algorithm shares are not shares or membership interests of STS Ltd. Regardless, share ownership will be the vehicle used to realize profits.
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