Bitcoin Forum
December 07, 2016, 02:49:10 PM *
News: Latest stable version of Bitcoin Core: 0.13.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: About ATS / Bots + Market Making Partnership  (Read 1881 times)
Gyom
Donator
Member
*
Offline Offline

Activity: 83


View Profile
October 19, 2011, 06:30:38 PM
 #1

I've seen a few posts where people claim they have identified bots manipulating Bitcoin prices... I haven't investigated that in detail and I think what one calls "manipulation" is something another will call "finding equilibrium price".

So my personal conclusion is that I don't give it a shit as it doesn't matter and it's actually a good thing to see some people actually willing to put their money where their mouth is. A lot of people seem to just drown this forum in useless noise and pump and dump / FUD schemes... Speaking with your money is usually much more effective than speaking with your words.

What I noticed however is that there are bots on MtGox and Tradehill that are incredibly badly designed and that are easily manipulated / taken advantage of.

Over the last month, I was able to bring prices down across the market at least twice, and brought them up once, (by up to 5%...) without even actually making a single transaction, by taking advantage of theses bots. (basically every time I tried... it was fun!).

Pretty simple how you do it... Take a wide spread on Tradehill, put a buy order for like 0.1 bitcoin at 0.0001 or something above the current bid price (if you want to bring prices down, do a sell order) and you will see almost instantly a bot undercutting you by a little bit. Cancel your order. Repeat. Do it fast enough and you can bring the price up or down

Now bot writers need to take in account the market liquidity in order to not be fooled by such simple techniques.

Shameless plug here : I've been writing automated trading systems for the stock market and forex for about 8 years, and I'd be more than happy to provide automated trading programming / consulting services to large miners, large volume merchants or very early investors who are sitting on large quantities of bitcoins (50k or more, please don't waste my time if you have 10 bitcoins to trade...).

I'm not looking for compensation in the short term for my work, but rather for a long term partner (or partners) that has access to a lot of bitcoins or a regular bitcoin flow in order to set up a good market making platform. I am also hoping to be able to learn a lot on the bitcoin economy from you, so I'd rather work with someone who has been around for a while and who has a solid background in technology and / or economics.

I have several trading models and market making algorithms that I've been trading very successfully on Forex and on the stock market for years, that could easily and quickly be adapted to operate on bitcoin exchanges. I also have significant capital (in USD and CAD) to invest, as well as pretty good connections in the technical and financial spheres that we can bring on board in due time if needed.

Please send me a PM if this is something you would be interested in. Please make sure you fit the profile of partner I'm looking for and don't take it personal if I ask a lot of questions and / or want to move slowly / for the long term.
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1481122150
Hero Member
*
Offline Offline

Posts: 1481122150

View Profile Personal Message (Offline)

Ignore
1481122150
Reply with quote  #2

1481122150
Report to moderator
1481122150
Hero Member
*
Offline Offline

Posts: 1481122150

View Profile Personal Message (Offline)

Ignore
1481122150
Reply with quote  #2

1481122150
Report to moderator
Aureum_Coffee
Full Member
***
Offline Offline

Activity: 128


View Profile
October 20, 2011, 02:52:34 AM
 #2

Planning on bringing HFT to bitcoin world?

I am interested in hearing more about algo trading applied to bitcoin.

Generally in low trading volume, it will be easy to manipulate xchange rate.
Gyom
Donator
Member
*
Offline Offline

Activity: 83


View Profile
October 20, 2011, 04:53:13 AM
 #3

Liquidity on the markets is one of the first steps necessary to bring price stability. This is what a market maker provides. At this moment the opportunities are limited, because there is very little volume as you mentioned...

I don't expect this to be a profitable venture in the short term, but it will certainly be scalable and I will be ready to crank it up when the time comes. I think I hold a pretty solid edge from my existing technology platform that has been tested successfully on a much much more hostile trading environment (stock market + forex)... :-)
Clark
Hero Member
*****
Offline Offline

Activity: 540


So much code.


View Profile WWW
October 20, 2011, 04:20:43 PM
 #4

This thread is relevant to my interests...

I am developing a web-based trading platform for the Bitcoin exchanges, and I'm about to push a nice update to my current data delivery platform.

I would be interested in creating tools right into my platform that enable the execution of complex strategies at the discretion of the trader. I'm not sure I would want to build bots into a web platform (yet).

PGP KEY | 1Bitcoin3Tg2KWyAq3wzivdqwYqGwKYaGd
molecular
Donator
Legendary
*
Offline Offline

Activity: 2128



View Profile
October 21, 2011, 10:54:37 PM
 #5

This thread is relevant to my interests...

I am developing a web-based trading platform for the Bitcoin exchanges, and I'm about to push a nice update to my current data delivery platform.

I would be interested in creating tools right into my platform that enable the execution of complex strategies at the discretion of the trader. I'm not sure I would want to build bots into a web platform (yet).

Just found about this, might be relevant here:

https://bitcointalk.org/index.php?topic=49218.0 "Aricie: Trading Competition (50 btcs bounty)"
https://dnnbitcoin.aricie.com/Default.aspx?tabid=39

These guys offer we web-based bot platform. Definitely interesting. The currently implemented trading strategy looks to me like it would provide liquidity to the market if used by enough people, but I'm in no was an expert on this.

PGP key molecular F9B70769 fingerprint 9CDD C0D3 20F8 279F 6BE0  3F39 FC49 2362 F9B7 0769
Gyom
Donator
Member
*
Offline Offline

Activity: 83


View Profile
October 28, 2011, 06:40:01 PM
 #6

I agree this is a good entry point for people who want to learn about ATS / Bots programming and everything.

I hope to see more competitions like this in the future... (and hopefully competitions that will not require people to host their bots on their platforms)...
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!