This is the official thread for
bitcoinsreserve.com's TRIANGLE ARBITRAGE FUND. serving as a means of communicating important notices, and answering questions.
ABOUT
Having done limited arbitrage into MtGox, and more recently into a number of Chinese exchanges, we have solid experience required to capitalise on Arbitrage opportunities between exchanges.
Through our facilities (which includes banking and currency exchange network setup in China, in addition to BTCE, mtgox and Bitstamp accounts), we currently perform round trips from USD -> BTC -> CNY -> USD through USD wires of 40k - 60k at a time.
RETURN
Historically, we've seen spreads as wide as 58% (such as during the senate hearings on 18/11/13). Current spreads are at 19% (25/11/13) between BTCE and BTCChina, less all exchange and wire fees involved, we're looking at a 13% ROI per round trip. We can perform on average 1 round trip per week, but sometimes defer due to poor spreads, as a trade during poor spread has an opportunity cost if the spread were to improve significantly in the coming days. We take a 50% profit share to give the process the attention required to ensure speedy turnaround at each stage of the arbitrage, so that we're able to make the money work harder for you.
FUND
Entry point into the fund is either BTC or USD and it's equivalents such as BTCE codes, we can accept international wires or bitcoins sent to our wallet. We will then work off the USD valuation of Bitcoins at the time, and track the growth of the fund through USD (as it gives a better representation of the solid results delivered through arbitrage).
RISKS
We only use major exchanges, such as BTCE, mtgox, Bitstamp, BTCChina, whilst we will do our best to balance risk diversification and profitability, but if these major exchanges were to do all do runners, then it may result in a total loss for the entire amount invested.
NOTE
We believe a mixture of speculation and arbitrage yields the best results, as both hold two very distinct risk profiles that complement each other during different stages of bitcoins growth cycle. Arbitrage is a means to guarantee solid ROI on your fiat currency (provided exchanges continue functioning), and involves no "speculation" as trades happen when spreads are profitable. It however doesn't mean it may out perform the long term appreciation in the value of bitcoin.
CONTACT
Feel free to PM me or add my skype id "aspiringentrepreneur" if you're keen to explore this concept further.
