First of all sorry for the massive delay on this post, I have started a new part time job and have started to settle in, so I am still getting used to that and I have also been kind of lazy this week xD
Here's the weekly report for last week Weekly Report
This week I have been working on selling of mining bonds that do not offer any upgrades, as well as selling off old and non profitable assets. I have sold of most of our YABMC,BitBond and PureMining bonds, while I have purchased more Gigamining bonds instead (which do offer a upgrade path).
I have been moving capital into bonds, loans and CDs as part of the plan mentioned below. I have moved more into our insured pirate pass through, which is now up to 1000 BTC, I have also moved 1,500 BTC into differerent bonds and deposits on https://mybitcointrade.com/en
. We have invested 500 BTC into each of Long Term Loaning ZiggiStar 12% / 30 days. and Long Term Loaning ZiggiStar 20% / 30 days guarantee, These are both loaning bonds, that are open to be traded on the market, which pay a daily dividend. As these are not affected by the Bitcoin price decrease or increase, I decided it was a good idea to move some capital into such ventures.
My Smartphone has arrived
I have setup google authentication for two factor authentication on MtGox, GLBSE and the fund email. This is just one of the many security upgrades that will be arriving soon, if you have any feedback or want to help out with security or any of the other upgrade areas then please send me a email or a pm.
I was on holiday during the majority of this week, which could be partly why the profit is low. I did not do my normal active trading or so called flipping, during the time I was on holiday, instead I placed bid walls and ask walls that was for long term holding/selling. I do think though that most of the negative profit came from the massive rally which made GLBSE bearish and made the share prices plummet. Really sorry about the bad performance of the fund recently, But I am not going down without a fight
, so check the investment plan below for my plan!
Thank you for another week and thank you for your trust in these hard times!
Market analysis/investment plan
I can start by mentioning the massive rally that has been going on for the last couple of weeks, the Bitcoin market is currently in a very strong positive motion. The Bitcoin price moved from 6.86 USD per BTC to 7.64$ last week, the rally has continued and is now up to slightly over 9$. As it looks like right now the rally will continue up to 10-15$ range before it will have any real counter support. It's currently obvious that a manipulator (maybe pirate?) is keeping the market steady and increasing the price slowly over time, this can easily be seen by the massive walls of thousands of BTC and USD that has been placed in both bid and ask by the same person.
Well how does this rally effect us you might ask?
Well as we are currently heavily into GLBSE assets (about 65%), we are heavily affected by the way this rally affects GLBSE. When the Bitcoin price market moves up and is bullish, then GLBSE becomes negative and bearish, this might be due to several factors. I will mention some shortly, hardware and other real life assets that are valued in USD now become less valued in BTC as the BTC/USD price increases, hence the asset holdings are worth less in BTC. It might also be the factor that people think in USD, and they value the assets on the basis of their USD share price not the BTC. Hence when the price increases the value of the share in BTC decreases. These are two of the many reasons why GLBSE become bearish when the Bitcoin price market becomes bullish. This means that as long as the price is decreasing, we are going to be in a less advantageous position as share prices will fall. (Please read the investment plan for more detail of what I will do to prevent this).
What has been done to improve our situation so far?
What I have done is to slowly liquidate our holding on GLBSE, so far about 2000 BTC has been liquidated. This process is slow and takes a lot of time, as the bids are few in numbers and volume, a fund of our magnitude can't simply dump our shares on the market, that would lead to a massive crash and only losses for us. Hence it needs to be done slowly and surely, by placing asks and playing the waiting game, as well as shooting down any high bids. It's an unfortunate situation we are in as the way GLBSE is currently built is that you have to have the same amount of BTC in your account as the total amount of all your bids, and as we all know keeping BTC lying around costs as you miss out on interest, while placing an ask costs nothing, as you would have the shares on GLBSE anyways. Hence there's more incentive to place an ask than a bid, this leads to an imbalance in the system, which I have noticed is one of the reasons we are having so much trouble liquidating assets on GLBSE.
What will be done in the future/what's the plan?
The plan I have setup is to setup our portfolio as follows (a draft/goal, final results might vary):
Bot trading (arbitrage/margin) 20%
High risk investments (startups etc) 5%
Liquid assets (BTC,USD etc) 5%
This will be reached by slowly liquidating GLBSE, and rinsing out all assets that do not hold a certain quality or profitability. This will be done using the spreadsheet mentioned previously which will be built up slowly over time as we go through an analysis of each asset. We will then start moving away from short term holdings on GLBSE, and aim for more stable and safe long term assets, which we know will be profitable and successful. We will also be working to improve and setup more trading bots on more exchanges
That way we can take advantage of the volatile market.
As always, if there's any questions or concerns please do ask