Fair Value

[Ani_]

Hello,

I am creating this topic to understand is it possible to achieve the fair value while trading (crypto, gold, derivatives...)? I am conducting a research at the moment, because its crazy how market can go up and down, and (after all) there are some trading strategies named 'The Fair Value Trading Strategy' like this one: https://finance.yahoo.com/news/fair-value-trading-strategy-explained-153843774.html and definition from Zacks (https://finance.zacks.com/difference-between-premarket-futures-fair-value-10349.html) ''fair value is the futures rate before market opening adjusted for purchasing shares at the opening.''

So, my question is - do you know some platform or solution which can assist us to find out when the ''fair-value'' trading moment is? Or, does anyone has some tip? Advise needed. Thanks!

[level01]

Hello there!

‘Fair Value’ is the sale price that is agreed upon by a willing buyer and an equally keen seller in an agreement. Sometimes the market determines fair value of an investment, other times; fair value represents a company’s assets and liabilities when a subsidiary company’s financial statements are consolidated by its parent company. Our Quantitative Analyst, Donatas Vadopalas, isn’t really into either. Instead, he and his team chose to perfect true fair value on their cutting edge platform Level01, the World’s First Peer-to-Peer Exchange for Derivative Contracts.

“In the derivatives markets no-arbitrage principles often dictate where the fair value or, in other words, pricing should be. Market fragmentation between retail investors and institutional investors often puts retail investors at odds against their brokers as their ability to trade at (or close to) no-arbitrage prices is limited.” explains Vadopalas.

Our system architects and engineers have achieved ‘Fair Value’ by harnessing artificial intelligence onto the platform. We invite you to read more about the solution, our FairSense AI and how we can support you to perfect true fair value, here: https://level01.io/2018/11/13/how-can-artificial-intelligence-be-harnessed-to-achieve-fair-value-on-a-derivatives-exchange/

Of course, for direct communication you can always DM us here, or in our community group (https://t.me/level01ico), 24/7.

[Red-Apple]

this strategy with all its definitions and any other trading strategy that you can find out there are all defined for a market that has little to no manipulation in it. markets such as stocks market, gold market,... which even though have manipulation but the power of it is minimal.
but when a market (like the altcoin market) is dominated by manipulation and is completely unpredictable no strategy could work in it no matter the type of it.

[Ani_]

Hello there!

‘Fair Value’ is the sale price that is agreed upon by a willing buyer and an equally keen seller in an agreement. Sometimes the market determines fair value of an investment, other times; fair value represents a company’s assets and liabilities when a subsidiary company’s financial statements are consolidated by its parent company. Our Quantitative Analyst, Donatas Vadopalas, isn’t really into either. Instead, he and his team chose to perfect true fair value on their cutting edge platform Level01, the World’s First Peer-to-Peer Exchange for Derivative Contracts.

“In the derivatives markets no-arbitrage principles often dictate where the fair value or, in other words, pricing should be. Market fragmentation between retail investors and institutional investors often puts retail investors at odds against their brokers as their ability to trade at (or close to) no-arbitrage prices is limited.” explains Vadopalas.

Our system architects and engineers have achieved ‘Fair Value’ by harnessing artificial intelligence onto the platform. We invite you to read more about the solution, our FairSense AI and how we can support you to perfect true fair value, here: https://level01.io/2018/11/13/how-can-artificial-intelligence-be-harnessed-to-achieve-fair-value-on-a-derivatives-exchange/

Of course, for direct communication you can always DM us here, or in our community group (https://t.me/level01ico), 24/7.

[/size]

Wow, will definitely check, thank you very much. Happy to hear there's someone working on this, and makes things easier for us, new new traders Do you have platform?

[Vitamin_52]

Oh man, it's hard to say how much cryptocurrency has fair value. Each stage of time has its own price, today it is 10K dollars, and tomorrow more people will start using bitcoin 2 times and the price will be approximately 2 times higher.

[Ani_]

this strategy with all its definitions and any other trading strategy that you can find out there are all defined for a market that has little to no manipulation in it. markets such as stocks market, gold market,... which even though have manipulation but the power of it is minimal.
but when a market (like the altcoin market) is dominated by manipulation and is completely unpredictable no strategy could work in it no matter the type of it.

True Thats what scares me. In those situations only experience helps...or, like the member above posted, AI I do believe AI algorithms will help us, at least, not to have tension or market manipulation

[ATSgrowth]

Yeah, I have heard about this many times that BTC price goes back to levels where are gaps on CME futures. Nobody knows why but in 90% this happened.

[Murat]

There are not such sites Exist as far as I know. If there are they probably not that correct. In Crypto things like Fair Value doesn't Work. Because the market is not regulated so the manipulation is at their best. There is no away a project who Raised over $80M in their token sale lost value of 98% it's because they sold everything they had and did not deliver anything they promised. 

I just read this article and found very interesting knowledge ''Guide to Determining Fair Market Value (FMV) for Cryptocurrency Assets''

Full read here - https://cryptforensic.com/2019/01/10/guide-to-determining-fair-market-value-fmv-for-cryptocurrency-assets/

[target]

Nothing is fair here in crypto. You can see the price of a coin go up like there is a technology behind it superior than the rest but not an hour later, you realize its just a pump and then you of course hurry to dump but an hour is just too long and you miss the chance. No strategy can stand to that kind of event.  You will be left thinking how is the fair value of a coin but the value of it will not be back just when you pray. Scary of course, when the market is very volatile.

[Ani_]

There are not such sites Exist as far as I know. If there are they probably not that correct. In Crypto things like Fair Value doesn't Work. Because the market is not regulated so the manipulation is at their best. There is no away a project who Raised over $80M in their token sale lost value of 98% it's because they sold everything they had and did not deliver anything they promised. 

I just read this article and found very interesting knowledge ''Guide to Determining Fair Market Value (FMV) for Cryptocurrency Assets''

Full read here - https://cryptforensic.com/2019/01/10/guide-to-determining-fair-market-value-fmv-for-cryptocurrency-assets/

Nice. This is valuable! But I am interested in all kinds of popular assets classes such as Currencies, Stocks, Commodities, Index, and (of course) Cryptocurrencies. But not only crypto. I am looking for a solution where I can invest with crypto in other financial asset. I was reading that now, with smart contacts, trust and probability has much better scores, since all transactions are visible. Also, If it's possible to buy an option with crypto, through smart contract...if anyone know any option/heard about solution - please, suggest

[magneto]

Hello,

I am creating this topic to understand is it possible to achieve the fair value while trading (crypto, gold, derivatives...)? I am conducting a research at the moment, because its crazy how market can go up and down, and (after all) there are some trading strategies named 'The Fair Value Trading Strategy' like this one: https://finance.yahoo.com/news/fair-value-trading-strategy-explained-153843774.html and definition from Zacks (https://finance.zacks.com/difference-between-premarket-futures-fair-value-10349.html) ''fair value is the futures rate before market opening adjusted for purchasing shares at the opening.''

So, my question is - do you know some platform or solution which can assist us to find out when the ''fair-value'' trading moment is? Or, does anyone has some tip? Advise needed. Thanks!

Fair value is a concept that seems really good on paper to form trading signals, but in reality, probably doesn't even exist.

After all, at any given moment, the fair value is really just the market value of an asset. The demand and supply come together to form the market value, and that should be the market's equilibrium and that given moment.

I'd say just look at sentiment for starters, if you want to find whether a coin is overvalued or undervalued. If sentiment is bullish and people are FOMOing, then the coin is likely to be extremely overvalued, and vice versa. Finding "fair value" requires a ton of modelling that I don't think casual traders are simply up for.

[Red-Apple]

this strategy with all its definitions and any other trading strategy that you can find out there are all defined for a market that has little to no manipulation in it. markets such as stocks market, gold market,... which even though have manipulation but the power of it is minimal.
but when a market (like the altcoin market) is dominated by manipulation and is completely unpredictable no strategy could work in it no matter the type of it.

True Thats what scares me. In those situations only experience helps...or, like the member above posted, AI I do believe AI algorithms will help us, at least, not to have tension or market manipulation

artificial intelligence in its simple form can only do what people could do in a faster way not something people can't do themselves which is the case here.
and AI in its advanced way it not that advanced to do anything this complicated and if it could then it would be worth millions of dollars!

[Ani_]

Hello,

I am creating this topic to understand is it possible to achieve the fair value while trading (crypto, gold, derivatives...)? I am conducting a research at the moment, because its crazy how market can go up and down, and (after all) there are some trading strategies named 'The Fair Value Trading Strategy' like this one: https://finance.yahoo.com/news/fair-value-trading-strategy-explained-153843774.html and definition from Zacks (https://finance.zacks.com/difference-between-premarket-futures-fair-value-10349.html) ''fair value is the futures rate before market opening adjusted for purchasing shares at the opening.''

So, my question is - do you know some platform or solution which can assist us to find out when the ''fair-value'' trading moment is? Or, does anyone has some tip? Advise needed. Thanks!

Fair value is a concept that seems really good on paper to form trading signals, but in reality, probably doesn't even exist.

After all, at any given moment, the fair value is really just the market value of an asset. The demand and supply come together to form the market value, and that should be the market's equilibrium and that given moment.

I'd say just look at sentiment for starters, if you want to find whether a coin is overvalued or undervalued. If sentiment is bullish and people are FOMOing, then the coin is likely to be extremely overvalued, and vice versa. Finding "fair value" requires a ton of modelling that I don't think casual traders are simply up for.

After reading ??$190 Million in Crypto Gone Forever, How Canada?s Biggest Bitcoin Exchange Lost it All?? or ??Exit Scam? Crypto Exchange Delists High-Profile Tokens & Users Allege Sell-Off??, of course the trust if questioned. Constant manipulations and fraudulence are devastating the market.


 

[level01]

this strategy with all its definitions and any other trading strategy that you can find out there are all defined for a market that has little to no manipulation in it. markets such as stocks market, gold market,... which even though have manipulation but the power of it is minimal.
but when a market (like the altcoin market) is dominated by manipulation and is completely unpredictable no strategy could work in it no matter the type of it.

True Thats what scares me. In those situations only experience helps...or, like the member above posted, AI I do believe AI algorithms will help us, at least, not to have tension or market manipulation

artificial intelligence in its simple form can only do what people could do in a faster way not something people can't do themselves which is the case here.
and AI in its advanced way it not that advanced to do anything this complicated and if it could then it would be worth millions of dollars!

Good point! But, an analysis by Accenture indicates that between 2018 and 2022, banks that invest in AI and human-machine collaboration at the same rate as top-performing businesses could boost their revenue by an average of 34 percent. AI’s application is proven to improve efficiencies or customer outcomes and our software-development team is working hard to achieve a human-machine collaborated future in derivatives trading — to help people trade better, with ease and peace of mind. Shortly, our Fairsense AI analyzes trade intent patterns of users on the platform and matchmakes or suggests them to counterparty users. Specification is available here - https://level01.io/wp-content/uploads/2018/06/level01_whitepaper_final1-2.pdf

And, here's a bit longer article about AI influence on derivatives market: https://level01.io/2018/11/20/derivatives-trading-is-on-the-edge-of-a-new-world-with-artificial-intelligence-on-level01/

Also, we're helping retail investors, people like you, to access the global derivatives market through a secure, trustworthy, automated and intelligent trading environment on Level01. This decentralises the paradigm of investment in all kinds of derivatives including options, stocks, bonds, and commodities and can fundamentally change the investment ecosystem.

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Btw, great topic!

[Ani_]

Good point! But, an analysis by Accenture indicates that between 2018 and 2022, banks that invest in AI and human-machine collaboration at the same rate as top-performing businesses could boost their revenue by an average of 34 percent. AI’s application is proven to improve efficiencies or customer outcomes and our software-development team is working hard to achieve a human-machine collaborated future in derivatives trading — to help people trade better, with ease and peace of mind. Shortly, our Fairsense AI analyzes trade intent patterns of users on the platform and matchmakes or suggests them to counterparty users. Specification is available here - https://level01.io/wp-content/uploads/2018/06/level01_whitepaper_final1-2.pdf

And, here's a bit longer article about AI influence on derivatives market: https://level01.io/2018/11/20/derivatives-trading-is-on-the-edge-of-a-new-world-with-artificial-intelligence-on-level01/

Also, we're helping retail investors, people like you, to access the global derivatives market through a secure, trustworthy, automated and intelligent trading environment on Level01. This decentralises the paradigm of investment in all kinds of derivatives including options, stocks, bonds, and commodities and can fundamentally change the investment ecosystem.

---

Btw, great topic!

Interesting! I read on the article, the WP Document is a bit too industry professional for my understanding, but as I can see your platform allow investors/traders ''to simultaneously compete for the best offers without imposing them with a requirement to have their own algorithms for price estimation and having them continuously updating the quote manually.'' If I understand good, that means we can trade even if we are new in this? Because if we can see the Fair Value graph all the time - I do not need to have some super knowledge or understanding about options and derivates trading to try? Also, I am interested is it possible to buy/sell smart contracts?

@Red-Apple please check because I agree with your comment that ''AI in its advanced way it not that advanced to do anything this complicated ''!

[Ani_]

Thank you all! I researched a bit more, and I think it is possible for non traders to learn, or as Level01 suggested - let AI learn and help us

[gaston castano]

how can anyone know exactly when to buy and sell, it is only a prediction and all predictions are not necessarily true. if you want predictions from people, you can join a group that talks about pumps or something.
but here no one can be trusted because there is no guarantee that what he said is true. So be wise in making choices.

[Ani_]

how can anyone know exactly when to buy and sell, it is only a prediction and all predictions are not necessarily true. if you want predictions from people, you can join a group that talks about pumps or something.
but here no one can be trusted because there is no guarantee that what he said is true. So be wise in making choices.

yeah, of course they are not true, people tend to think they know everything.... in this fast changing world, i hope some smart ai will help people to make better choice, not gossips or predictions

[foxincoin]

It is very difficult to calculate this, even we can do some calculation but finally it back to predict, the news may push market down or up, so calculation at this time may useless.

[level01]

It is very difficult to calculate this, even we can do some calculation but finally it back to predict, the news may push market down or up, so calculation at this time may useless.

It is possible with an AI Trade Matching Technology and Trade Settlement on the Blockchain

This technology allows users to trade options contracts directly with one another peer-to-peer (P2P) without the need for an intermediary broker; with a proprietary system that was designed to leverage blockchain, cryptocurrency and smart contracts technology for automation and transparency in market data, trade contract intent & matching, transactional history, and trade profit settlement.

For improved efficiency, peer-to-peer trade matching on the platform is assisted by a specially formulated algorithm ‘FairSenseTM’, which analyzes trade intent patterns of users on the platform and matchmakes or suggests them to counterparty users.

The platform facilitates efficient functioning of a market and price discovery through proprietary developed intelligent algorithms that dynamically improve over time through machine learning. This helps retail users with trade matching, efficient price discovery and fair value analytics when conducting their trades.

Pages 5-7 in the document https://level01.io/wp-content/uploads/2018/06/level01_whitepaper_final1-2.pdf