ax10 (OP)
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January 23, 2014, 06:42:30 PM |
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The bitcoin prices on BTC-E seem to range from approximately $800 - $840 for the past week or so. I was wondering if the below strategy seemed reasonable when the goal is to make small profits (more BTC / $) every day.
Strategy: Make small profits every day ($10)
e.g. Buy @$815 & sell at $825 (Hopefully repeat this twice a day). Stop loss trades will of course be put at appropriate levels.
Does this strategy seem reasonable?
Appreciate any comments or thoughts
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Catswold
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January 23, 2014, 07:04:28 PM |
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What you're talking about basically is arbitrage of a sort. Problem is liquidity. You have to be certain that your buy/sell orders are carried out instantly. You're also betting that the value will continue in that pattern.
It's possible, but the liquidity problem adds to the difficulty.
Good Luck!!!
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hilariousandco
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January 23, 2014, 07:50:23 PM |
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The bitcoin prices on BTC-E seem to range from approximately $800 - $840 for the past week or so. I was wondering if the below strategy seemed reasonable when the goal is to make small profits (more BTC / $) every day.
Strategy: Make small profits every day ($10)
e.g. Buy @$815 & sell at $825 (Hopefully repeat this twice a day). Stop loss trades will of course be put at appropriate levels.
Does this strategy seem reasonable?
Appreciate any comments or thoughts
Of course you can make money this way, but it's not as easy or as simple as it sounds/looks. |
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keithers
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January 23, 2014, 08:42:31 PM |
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With a margin that slim, your timing would have to be perfect, and you have to be willing to put some serious skin in the game, if you want to make any sort of real money.
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ax10 (OP)
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January 23, 2014, 09:44:37 PM |
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With a margin that slim, your timing would have to be perfect, and you have to be willing to put some serious skin in the game, if you want to make any sort of real money.
Thanks everyone for your comments. I have never traded before so thanks a ton for your thoughts. Can you please elaborate on why timing may be such an issue? Here's what I was planning on doing in BTC-e. Not yet clear on why this is a challenge. Thats where I need your help. Strategy: Observing the current prices buying at $800 / btc seems like a good entry point. To do this I would place a limit order at $800 Then I would place a sell order at any price above $825 (limit sell order) What should I be careful about? Does BTC-e accept limit orders? |
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jonanon
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January 24, 2014, 06:56:21 AM |
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What you're talking about basically is arbitrage of a sort. Problem is liquidity. You have to be certain that your buy/sell orders are carried out instantly. You're also betting that the value will continue in that pattern.
It's possible, but the liquidity problem adds to the difficulty.
Good Luck!!!
What the OP described is in no way arbitrage. Arbitrage is taking advantage of the price differences between markets of the same commodity. What the OP described is called 'trading' and his 'strategy' is in no way such. Buying low and selling high is the basic idea of trading. A strategy is HOW you intend to do so. |
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jonanon
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January 24, 2014, 07:02:42 AM |
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With a margin that slim, your timing would have to be perfect, and you have to be willing to put some serious skin in the game, if you want to make any sort of real money.
What should I be careful about? Does BTC-e accept limit orders? Nothing at all to be careful about. If you buy at $800 you can guarantee there is no chance that the price will go down - it will definitely go in the direction YOU want it to go every time. I can see you making an absolute fortune at trading BTC/USD and am very envious of you. I only wish I could do the same....... |
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keithers
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January 24, 2014, 10:46:27 PM |
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With a margin that slim, your timing would have to be perfect, and you have to be willing to put some serious skin in the game, if you want to make any sort of real money.
Thanks everyone for your comments. I have never traded before so thanks a ton for your thoughts. Can you please elaborate on why timing may be such an issue? Here's what I was planning on doing in BTC-e. Not yet clear on why this is a challenge. Thats where I need your help. Strategy: Observing the current prices buying at $800 / btc seems like a good entry point. To do this I would place a limit order at $800 Then I would place a sell order at any price above $825 (limit sell order) What should I be careful about? Does BTC-e accept limit orders? Here is why timing is important. It occurred to me last night. I was planning on buying some more LTC. I purchased 1 extra BTC on coinbase. At the time of purchase, I believe the price per BTC was about $13 higher than that of bitstamp/coinbase. Therefore, I would almost be able to get 1 LTC for free in addition to the LTC I was going to purchase. I purchased 1 BTC, and immediately sent it over to BTC-E. It took exactly 1 hour and 5 minutes to confirm (just within the coinbase database for 6 confirmations). Once that had occurred it took about another 45 minutes after reaching BTC-E.com for the 3 confirmations required for the bitcoin to be available for trade. By that time, the price per bitcoin on BTC-E.com was $10-$11 less than the price on bitstamp/coinbase. So, in this scenario, the money that you were planning on profiting by just purchasing BTC and then sending it to a different exchange for profit would not have worked. |
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curt.rowland
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January 25, 2014, 01:49:04 AM |
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I would like to just get some USD transferred to btc e but all of their payment methods seem fishy and no bank wire transfer from US bank?  |
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kellrobinson
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January 25, 2014, 11:27:28 PM |
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Your have formulated a strategy that will work if btc trades in the narrow 800-840 range.
It's all but certain that the price of btc will make a move not accounted for in your scenario, nobody knows when.
Clearly, you haven't covered all the bases.
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jcoin200
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January 26, 2014, 12:22:53 PM |
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Yes the price swings and so its possible to make profit, but you never ever KNOW when the price is going up or down. One of the hardest things I've found is waiting. One time I set a buy order and waited over a week for it to fill. The price eventually dropped just under my target price and so I made a small gain of LTC. Every other time I seem to lose money when I try to day trade like you are trying to do. Also, factor in the possiblilty of BTC-e "losing" your withdrawal...which seems to be a fairly regular occurance
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Nova!
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January 27, 2014, 03:47:31 PM |
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I would like to just get some USD transferred to btc e but all of their payment methods seem fishy and no bank wire transfer from US bank? Thats because they're russian. Buy with another source and move it to Cryptsy or Coinex.pw |
Donate @ 1LE4D5ERPZ4tumNoYe5GMeB5p9CZ1xKb4V
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Shahrukh
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January 27, 2014, 04:50:26 PM |
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In my opinion this strategy doesn't works everyday, the other day I made 4000 profit and now I am waiting for such a day again
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I turned everyone down  Sorry for that |
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