I predict the next difficulty
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[quote name=“Bushstar” post=“15210” timestamp=“1371287370”]
I may get two 12" centrifugal fans in a push-pull setup in the room and replace the air in the room frequently.
[/quote]Out of curiosity: What’s your ambient temperature? (and where are you from?)
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About 20C and from Oxford, UK.
The room I am in is a bit small for four rigs. I may make a video of my setup as a break from work at some point.
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[quote name=“Radacoin” post=“15031” timestamp=“1371243301”]
[quote author=Kevlar link=topic=1841.msg15026#msg15026 date=1371243109]
Feathercoin IS over .0011 on Bter.com. :oUp or down, either way arbitrage is the way to go; My bot is making a killing on the volatility. Is anyone else doing arbitrage?
[/quote]How do you arbitrage? I mean on what exchanges and with what coin pairs?
[/quote]Bitstamp, CampBX, and MtGox: BTC->USD
Bter, BTC-e: FTC->BTC, LTC->BTC -
[quote name=“Kevlar” post=“15337” timestamp=“1371312786”]
[quote author=Radacoin link=topic=1841.msg15031#msg15031 date=1371243301]
How do you arbitrage? I mean on what exchanges and with what coin pairs?
[/quote]Bitstamp, CampBX, and MtGox: BTC->USD
Bter, BTC-e: FTC->BTC, LTC->BTC
[/quote]But that’s essentially only one-way trade/chain: FTC/LTC -> BTC -> USD
From what I understood arbitrage has to be two-way.
(Def: " … taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices. …").
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[quote name=“Magic8Ball” post=“15030” timestamp=“1371243231”]
[quote author=Kevlar link=topic=1841.msg15026#msg15026 date=1371243109]
Feathercoin IS over .0011 on Bter.com. :oUp or down, either way arbitrage is the way to go; My bot is making a killing on the volatility. Is anyone else doing arbitrage?
[/quote]At lease I am not. How do you get that bot? Would love to increase my 440 odd FTCs.
[/quote]I wrote it myself, and I’m not sure it’s for sale. Maybe for the right amount, but I’d prefer to keep the opportunities to myself.
I’m sure if someone were to make me the right offer we could work something out, but 440 FTC isn’t it.
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[quote name=“Radacoin” post=“15343” timestamp=“1371313298”]
[quote author=Kevlar link=topic=1841.msg15337#msg15337 date=1371312786]
[quote author=Radacoin link=topic=1841.msg15031#msg15031 date=1371243301]
How do you arbitrage? I mean on what exchanges and with what coin pairs?
[/quote]Bitstamp, CampBX, and MtGox: BTC->USD
Bter, BTC-e: FTC->BTC, LTC->BTC
[/quote]But that’s essentially only one-way trade/chain: FTC/LTC -> BTC -> USD
From what I understood arbitrage has to be two-way.
(Def: " … taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices. …").
[/quote]You’re correct in your definition, but not in your execution. The bot requires (and checks first) that you have enough liquidity in the correct currencies on both exchanges. That means you have both FTC/LTC AND BTC in both places. When the opportunity presents itself, you take it, selling FTC for BTC in one place, and buying FTC for BTC in another at a lower rate. It does this at the same time as part of an atomic operation, thereby locking in instant profit. Your FTC holdings goes up on one exchange while your BTC holdings goes down, and on the other exchange the opposite happens, with the amount of FTC your holding going down and BTC going up.
Later on, the price may go down quicker on one exchange than the other, allowing you to do the reverse, buying where you sold, and selling where you buy. The point isn’t to go from FTC/LTC/BTC to USD, it’s to increase total holdings of any coin by buying low and selling high, and squaring up the differences later. It requires that you have all traded currencies in all the markets so when the opportunity presents itself, you’re ready to go.
The opportunities are generally small… less than 0.001 bitcoins worth of profit after commissions and fees, but when your bot can do 3,000 of them in a day, it’s suddenly very profitable. Especially on high volatility days, where the differences in prices between exchanges are larger.
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So I’m assuming the answer to my question is “no, no one else is doing market arbitrage”?
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There is a lot of what-ifs in the scenarios you described. No guarantee the price will be where you want it when you successfully transfer FTC from one exchange to another.
Arbitrage opportunities exist but there is risk.
I say just stick with one exchange for now until confirmations are lowered to deposit (say on btc-e).
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Oh yeah, let me tell you, moving the coins between exchanges is a major no-no, as it just eats up your profits. The only way to make this work is to put your money in, and keep there long term. These opportunities don’t last more than 20 seconds on average.
You get the coins in there, wait for the order book to show an opportunity, make the trade… and that’s it. That way the risk is extremely low since the order book showed the opportunity literally a second ago.
Liquidity is REQUIRED. Otherwise you’re waiting on confirmation times, and getting fucked with withdraw fees. Won’t work. Wish it would.
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[quote name=“Kevlar” post=“15536” timestamp=“1371350355”]
Oh yeah, let me tell you, moving the coins between exchanges is a major no-no, as it just eats up your profits. The only way to make this work is to put your money in, and keep there long term. These opportunities don’t last more than 20 seconds on average.You get the coins in there, wait for the order book to show an opportunity, make the trade… and that’s it. That way the risk is extremely low since the order book showed the opportunity literally a second ago.
Liquidity is REQUIRED. Otherwise you’re waiting on confirmation times, and getting fucked with withdraw fees. Won’t work. Wish it would.
[/quote]I think many of us played that game until we got burned bad enough. I agree 100% with Smoothie and Kevlar.
