[CLOSED] MtGox Volatility Trading Bot [GMVT-BOT]

[cytokine]

If the price goes downwards out of the range we will end up with only bitcoins and no fiat money. In that case I would raise a motion if we want to wait for the price to go back upwards into our range, and/or to spend all the profit we made during that week to extend the range downwards or to shut down the asset and distribute bitcoins to shareholders. That's the exit strategy if price goes below the range. In this case we will end up with more bitcoins because we bought them lower than we sold them.
It may happen also that price will go steeply upwards and bot will not be able to catch up moving range upwards. This scenario less likely because I made it so that the range can move upwards faster (and much less costly) then downwards. In such scenario, bot is spending (some) profit for moving the range upwards. Also if bot will not be able to catch up moving range upwards and price will slip out of the range and will remain at higher levels for several weeks and forseeable future (looking at the MtGox market depth), we may extend the range upwards and continue trading at that higher prices as well but in this case the dividends/profits will be lower as the trading amount will be lower (I may raise a motion to spend let's say 50% of profits for strengthening the range). In this case investors will still not lose a single bitcoin but may expect lower dividends until we catch up with the price increase or until the price correction occurs. Right now we USD bot covers range approximately between 8.5 and 18 USD.

Also I would note now that at higher prices we have smaller orders and (at MtGox) we pay higher fees, so expect lower profits at higher prices if volatility stays the same. And also I don't understand why this asset is traded as high as 0.25. That's 2.5 times higher then was the IPO price and unless you expect such huge volatility as was last week to occur often don't buy it at that high price 

I will think about this for a while before I go in big. In the meantime I purchased a small quantity of shares. It is really great to see something like this appearing; it's a good alternative to the usual bonds and mining shares (or overvalued equities).

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[GeoRW]

Just to let you know, the motion to issue additional 700 shares has passed:

% to pass motion: 60
Voted Yea:563
Voted Nay:79

But I still don't have those additional shares in my account. I have opened support ticket on GLBSE and it is assigned to Nefario right now. Hopefully, it will be resolved soon. I will put an ask at 0.1 afterwards. Some of those shares (around 200) I plan to buy myself if they won't be sold.

[Carnth]

Just to let you know, the motion to issue additional 700 shares has passed:

% to pass motion: 60
Voted Yea:563
Voted Nay:79

But I still don't have those additional shares in my account. I have opened support ticket on GLBSE and it is assigned to Nefario right now. Hopefully, it will be resolved soon. I will put an ask at 0.1 afterwards. Some of those shares (around 200) I plan to buy myself if they won't be sold.

Any word on the new shares? Are they still held up by Nefario?

[GeoRW]

Just to let you know, the motion to issue additional 700 shares has passed:

% to pass motion: 60
Voted Yea:563
Voted Nay:79

But I still don't have those additional shares in my account. I have opened support ticket on GLBSE and it is assigned to Nefario right now. Hopefully, it will be resolved soon. I will put an ask at 0.1 afterwards. Some of those shares (around 200) I plan to buy myself if they won't be sold.

Any word on the new shares? Are they still held up by Nefario?

Yep. Still no response from Nefario on that support ticket.

[stochastic]

Just to let you know, the motion to issue additional 700 shares has passed:

% to pass motion: 60
Voted Yea:563
Voted Nay:79

But I still don't have those additional shares in my account. I have opened support ticket on GLBSE and it is assigned to Nefario right now. Hopefully, it will be resolved soon. I will put an ask at 0.1 afterwards. Some of those shares (around 200) I plan to buy myself if they won't be sold.

Any word on the new shares? Are they still held up by Nefario?

Yep. Still no response from Nefario on that support ticket.

Did you click on "issue more security" in your asset portfolio page?

[Trance104]

I'm interested in this and commend you for your bot sir! Well done!

[GeoRW]

Just to let you know, the motion to issue additional 700 shares has passed:

% to pass motion: 60
Voted Yea:563
Voted Nay:79

But I still don't have those additional shares in my account. I have opened support ticket on GLBSE and it is assigned to Nefario right now. Hopefully, it will be resolved soon. I will put an ask at 0.1 afterwards. Some of those shares (around 200) I plan to buy myself if they won't be sold.

Any word on the new shares? Are they still held up by Nefario?

Yep. Still no response from Nefario on that support ticket.

Did you click on "issue more security" in your asset portfolio page?

I didn't have that item under Security administration panel. Now Nefario responded to the ticket and it is there. But still I'm not able to issue those shares. When I try, I get the "You need to get your security holders to vote to allow you to issue." error message.

[GeoRW]

So, finally Nefario fixed it and 700 additional shares were issued.

[Brian Puccio]

Very interesting concept. Have you looked into arbitrage opportunities and creating a security for that? If you can move quickly, especially between exchanges, grabbing 1%+ seems possible on a somewhat regular basis since this is a fairly slow moving market (compared to, say, NYSE, where there's thousands of AIs looking for arbitrage opportunities all the time and milliseconds make or break them)?

[GeoRW]

Very interesting concept. Have you looked into arbitrage opportunities and creating a security for that? If you can move quickly, especially between exchanges, grabbing 1%+ seems possible on a somewhat regular basis since this is a fairly slow moving market (compared to, say, NYSE, where there's thousands of AIs looking for arbitrage opportunities all the time and milliseconds make or break them)?

Maybe some time in the future when I will have a lot of free time to develop, fine-tune and test such a bot. Goat had failed with his arbitrage bot, beacause of the amount of fiat money he had to move between exchanges and had many other problems because of that (money laundering accusations, terrorism). You may check TYGGR-BOT thread somewhere here on these forums.

[Rygon]

This is a great tool for the market. Profiting from volatility leads to overall market stability. We have a need for more bots like this one, especially since attempts at arbitrage trading haven't been successful.

[Slushpuppy]

So how is this going?

[🏰 TradeFortress 🏰]

I'm interested. Get verified!

[lagmo]

So how is the GLBSE closure going to affect GMVT-BOT?

[GeoRW]

So how is the GLBSE closure going to affect GMVT-BOT?

I haven't decided yet. After Nefario provides a list of investors there are some options:

1. Close down the operation, i.e. move bitcoins from exchanges (including buying bitcoins for current fiat balances) and distribute bitcoins to investors. This is the easier option for me.
2. Move to other exchange. It depends if this can be easily done, if some other exchange owner allows to move asset there and if we will have to pay additional costs for this move. I'm not sure if some other exchange can be safe enough.
3. Administer the dividend payouts by myself. I'm not sure if this option is feasible if there are many small investors. The frequency of payouts would change to once per month or once per 2-3 months maybe. Maybe I would buy back shares from small investors to continue like this if they will agree.

What are opinions of my investors?

Edit: Bots are still working meanwhile and profits are being accumulated.

[btharper]

So how is the GLBSE closure going to affect GMVT-BOT?

I haven't decided yet. After Nefario provides a list of investors there are some options:

1. Close down the operation, i.e. move bitcoins from exchanges (including buying bitcoins for current fiat balances) and distribute bitcoins to investors. This is the easier option for me.
2. Move to other exchange. It depends if this can be easily done, if some other exchange owner allows to move asset there and if we will have to pay additional costs for this move. I'm not sure if some other exchange can be safe enough.
3. Administer the dividend payouts by myself. I'm not sure if this option is feasible if there are many small investors. The frequency of payouts would change to once per month or once per 2-3 months maybe. Maybe I would buy back shares from small investors to continue like this if they will agree.

What are opinions of my investors?

Edit: Bots are still working meanwhile and profits are being accumulated.

As much as I'd love to retain the revenue that my shares of this bot produce, I probably qualify as a small investor anyway and I would figure that closing up for now would be the easiest. Even if you're later listed at another exchange getting all the current owners their shares  back would probably be tedious at best, and possibly expensive. If you do reopen somewhere else you can always just reissue the shares and start over.

For larger accounts (probably an arbitrary distinction that you'd have to make) you might give them the option of continuing or shutting down as running things manually for five people with 100 shares each is a lot easier than 50 people with 2-20 shares each.

[Trance104]

Even through you don't have any investor information, I commend you for your efforts and actually BEING THERE for us. Even if you are powerless for now. 

[GeoRW]

Even through you don't have any investor information, I commend you for your efforts and actually BEING THERE for us. Even if you are powerless for now. 

What do you mean being there? I'm still here  I have my own bitcoins invested in bonds/shares on GLBSE. So I hope Nefario will send assets information to issuers as soon as possible. Don't know why it's taking so long.

[GeoRW]

Just quick update for my investors. I ran some calculations, how the bots were performing since closing of GLBSE and what the liquidation of asset would mean for investors.
Since last dividend was paid at the end of September bots performed as follows:

Start	End	Profit	Man. Fee	Dividend	%
28.9.2012	27.11.2012	7.259981	0.725998	0.002420	2.42%

So if everything was as usual, the dividend at this time for past 2 months would be 0.002420 per share. As I'm considering to close down the operation (as per contract I'm allowed to do it), I calculated how much BTC would we have after liquidation of bot accounts and after conversion of fiat money that bots are working with. At this time at current prices that would bring us 262.776739191142 BTC (this includes unpaid dividends as calculated above). With 17.00892 BTC that was already paid as dividends before shut-down of GLBSE, I consider this project a success even after liquidation as I initially planned to run this for longer. I got 270 BTC from investors and total value produced for investors is at this time 279.785659191142 BTC.
After liquidation, each share is (at this time) entitled to 0.09732471821894 BTC. IPO price per share was 0.1 BTC. I expect that not all shares will be claimed so I will pay 0.1 BTC per share, which I think is a fair deal. Even after all shares are claimed I can pay 0.1 BTC per share as the difference is minimal.

I plan to continue to run bots with my own money afterwards (hopefully I will get as much BTC as possible from various assets I owned on GLBSE and invest them here). If there's a strong opposition to my plan of closing down the operation, I may consider to move this asset to some other exchange (BTCT.CO?) and continue to pay dividends from there. Paying dividends on my own is not something I would like to do as it is prone to errors

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Unfortunately I didn't receive the shareholders information from Nefario yet, so nothing can be done at this time 

[Trance104]

Just quick update for my investors. I ran some calculations, how the bots were performing since closing of GLBSE and what the liquidation of asset would mean for investors.
Since last dividend was paid at the end of September bots performed as follows:

Start	End	Profit	Man. Fee	Dividend	%
28.9.2012	27.11.2012	7.259981	0.725998	0.002420	2.42%

So if everything was as usual, the dividend at this time for past 2 months would be 0.002420 per share. As I'm considering to close down the operation (as per contract I'm allowed to do it), I calculated how much BTC would we have after liquidation of bot accounts and after conversion of fiat money that bots are working with. At this time at current prices that would bring us 262.776739191142 BTC (this includes unpaid dividends as calculated above). With 17.00892 BTC that was already paid as dividends before shut-down of GLBSE, I consider this project a success even after liquidation as I initially planned to run this for longer. I got 270 BTC from investors and total value produced for investors is at this time 279.785659191142 BTC.
After liquidation, each share is (at this time) entitled to 0.09732471821894 BTC. IPO price per share was 0.1 BTC. I expect that not all shares will be claimed so I will pay 0.1 BTC per share, which I think is a fair deal. Even after all shares are claimed I can pay 0.1 BTC per share as the difference is minimal.

I plan to continue to run bots with my own money afterwards (hopefully I will get as much BTC as possible from various assets I owned on GLBSE and invest them here). If there's a strong opposition to my plan of closing down the operation, I may consider to move this asset to some other exchange (BTCT.CO?) and continue to pay dividends from there. Paying dividends on my own is not something I would like to do as it is prone to errors

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Unfortunately I didn't receive the shareholders information from Nefario yet, so nothing can be done at this time 

I hope you don't close this down! I prefer things like this vs investing in a mining operation. The project was a huge success. I started trading on www.cryptostocks.com and it's not bad.  It just don't have the amount of volume that GLBSE had.

I do feel that if more companies such as yours found their way over there, that it would become a better place!

Either way, I appreciate the updates!