Ok, so back to the new design.  I think the idea of programmable logic is an admirable idea, but when someone is just setting up for the first time, there needs to be a logical set of defaults included.  In my fork, I've set the default logic to be VWAPCross, not because I believe it is in any way inherently better, but because it's the simplest and easiest to understand.  Last trade was below vwap we buy, above vwap we sell.  As it stands now if you don't put anything into the bid/ask logic fields it spits out a nasty stack trace and does nothing.  I've fixed that in my branch, but it's refusing to let me commit at the moment.  I'm sort of at a loss on that one and will try to massage it a bit tomorrow.

After we refactor to use the order book and limit orders, the next step will be to add in a proper AI.  Right now, all we are using are algorithmic traders.  The AI will be optional and until it's trained with a few weeks of data it runs a very real risk of making very expensive mistakes.  However it's "learning profile" is a stored data set that can be downloaded and updated regularly with new market information.

Because it will attempt to predict the market direction, it will necessarily be significantly different than the algo traders we have now. 

The AI is a predictive DSP with a genetic algorithm based on a project I wrote a few years back for a company that couldn't afford downtime (downtime meant lives lost not just dollars).  The AI would watch all systems globally and learn about which systems were failing.  At first it just watches everything and reports failures, then it begins to make predictions and give each prediction a weight based on if it comes true or not.  Eventually the strongest predictions survive and the weakest ones die out.
The goal here was to compile an alert of probabilities and send it as far in advance as possible. 
The longer it runs the smarter it gets.  With a failure rate of 1 machine per day it could predict up to 4 hours in advance with 90% certainty.

I've been running it against MtGox since I first created the Isis-ATP project and it's a bit novel in that it can deduce the lump sum direction of the algorithmic traders at play (after all that's what a DSP does it isolates signals from noise).

Since January it's been showing that the pricing structure is actually being supported by VWAPCross and someone somewhere appears to be running a stochastic oscillator and that someone has some serious dollars.  That's pretty much all the bots and it accounts for over 80% of the trading activity.  The remaining is human traders (random noise tends to be from human activity). 

This is MtGox data only.  I haven't tried it against any other exchange and the DDOS attacks a few weeks ago gave the poor thing brain damage for lack of a better word. I'm not sure how to reconcile the dataset so I'll start a new profile when I integrate it.

I will also be adding an internal wallet and a configurable "sweep" to allow you to get your profits out daily and still keep enough on hand for expected volume.

Finally I will also be adding peer to peer mode to allow nodes to specialize in exchanges and share resources.

If that doesn't make a lot of sense imagine this...
There is a significant arbitrage opportunity between btc-e & mtgox on BTC right now.  You can buy bitcoins cheaper on BTC-e and sell them for more on MtGox (feel free to check this).

Each node can be configured to specialize in a particular exchange and this is where the bulk of it's money is at. 

If we can predict the size and length of an arbitrage opportunity we can do the buying and selling individually and settle up the profits later.  This obviously only works if you are working with close friends and people you know.  But the fact is this can work in the right circumstances.

Imagine if I had $5000 USD on BTC-e and Aido (sorry you're volunteered), has a few hundred BTC on MtGox.  I can authorize my machine to spend the $5000 USD into BTC on BTC-e and Aido can authorize his machine to spend the BTC on MtGox into USD.  I am effectively lending him my USD while he in turn is loaning me his BTC.

Once the arbitrage window is over (or we run out of cash), then we settle and split the profits.

Obviously this system would require trust which is scare in the bitcoin community, but if the transactions were small enough and there were enough people running it and we added a "confidence" ranking of some sort based on previous interactions, this thing has real potential to make serious money for anyone who cares to participate while not requiring everyone to have a hundred thousand accounts everywhere to try and keep track of. 

It's optional and will be default disabled, but just be aware this is one really easy way to run arbitrage without so much risk from window expiry.
Hope you guys find it exciting.  There is quite a bit of work to do here, but I think it will all be worth it in the end.

Oh dear. I feel I must explain where the business plan in my sig comes from.....Gnomes (South Park)


PLatform for Advance Trading (PLATR - pronounced Platter)

Professional/Programmers Framework for Intelligent Trading (ProFIT)