Author Topic: Arbitrage Opportunity... BitUSD bids are above market..  (Read 6406 times)

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Offline JakeThePanda

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Arbitrage should bring everything in line. If you can add features to eliminate arbitrage then the market will work out the peg. Ideally there shouldn't be any arbitrage since this is a sign of iliquidity and inefficiency

It's a new market, give it time.  Arbitrage is eliminated by too many market participants competing to profit from the opportunity.  As the market becomes more efficient the arb opportunity is eliminated.  Make sure you include transaction fees in your arbitrage calculation.

Offline Riverhead

fill in the gaps...

Code: [Select]
while True:
    time.sleep(2)
    new_price = get_true_price()
    sec_since_update += 2
    if abs(new_price - last_price) / last_price > (SPREAD / 3):
        log("Price moved  -  old:  %f   new:  %f" % (last_price, new_price))
        log("Seconds since previous update:  %d" % sec_since_update)

        client.cancel_all_orders("USD", SYMBOL)
        client.wait_for_block()
        usd_balance = client.get_balance("USD")
        btsx_balance = client.get_balance(SYMBOL)
        client.submit_bid(0.3*(usd_balance * new_price), SYMBOL, new_price * (1+SPREAD), "USD")
        client.submit_ask(0.3*btsx_balance, SYMBOL, new_price * (1-SPREAD), "USD")
        last_price = new_price


Thanks Toast! I know what I'm doing tomorrow :).

Offline oldman

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if most people are just lazy and check the feeds.

feeds from multiple sources is the key here, Why make people run a bunch of windows to check other sources when we can keep it all in house

It's all about information feeds and signalling. When there is a profit opportunity it should signal directly in the interface so that this cannot happen. The user should select their mode, bull, bear, or market maker, then the opportunities should signal to them.

 +5% This would be ideal. Select asset and mode. Interface does the leg work. Would stabilize pegs and vastly improve user experience.

Offline luckybit

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if most people are just lazy and check the feeds.

feeds from multiple sources is the key here, Why make people run a bunch of windows to check other sources when we can keep it all in house

It's all about information feeds and signalling. When there is a profit opportunity it should signal directly in the interface so that this cannot happen. The user should select their mode, bull, bear, or market maker, then the opportunities should signal to them.

https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

Offline Gentso1

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if most people are just lazy and check the feeds.

feeds from multiple sources is the key here, Why make people run a bunch of windows to check other sources when we can keep it all in house

Offline liondani

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Ok we definitely need something that shows on the bitshares client live the prices from the different exchanges so we know if we can buy cheap BITUSD and support the peg...
+5

Offline mf-tzo

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Arbitrage should bring everything in line. If you can add features to eliminate arbitrage then the market will work out the peg. Ideally there shouldn't be any arbitrage since this is a sign of iliquidity and inefficiency

Offline JakeThePanda

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I think we need to give the market time to get settled in.  Arb will bring everything in line.  I think.  :-\

Offline toast

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if most people are just lazy and check the feeds.
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline toast

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I'm against it putting feeds directly in the client, it ties us to a source of failure
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline oldman

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Ok we definitely need something that shows on the bitshares client live the prices from the different exchanges so we know if we can buy cheap BITUSD and support the peg...

 +5%

Offline mf-tzo

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Ok we definitely need something that shows on the bitshares client live the prices from the different exchanges so we know if we can buy cheap BITUSD and support the peg...




Offline bitmeat

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BTC/USD   511
BTSX/BTC   0.00007
BTSX/USD   0.03577
BitUSD/BTSX   27.95638803

Need to put liquidity here, BitUSD/BTSX should be above 27 for the peg to work:

https://bter.com/trade/bitusd_btc

[EDIT] They reversed it, so it looks like the other exchanges:

https://bter.com/trade/btc_bitusd
« Last Edit: August 26, 2014, 03:57:01 pm by happypatty »

Offline CLains

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That didn't last long

Time                    Type          Price(USD)/(BITUSD)
08-26 14:19:35     Buy             1.0000   1.0000

 +5%

Offline cygnify

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My order history isn't actually in order of time/date. Anyone else get that?

What you mean you have an 'order history' for your account/wallet? A GUI one?

Yup, not ordered properly. From the GUI wallet ubuntu.