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Offline srcgpsmp

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BTSX portfolio manegment
« on: September 07, 2014, 07:54:09 AM »

I have some BTSX that I got from from my PTS holdings and I have been thinking about what I should do with them so here is the idea that came to me.
How to increase my BTSX value without risk using bitusd and/or bitbtc?

example:
Lets say I start with 100000 btsx at the beginning .
I buy BItUsd at market price (market pag working fine at the moment ,and should keep working in my opinion) with 25000 btsx and I buy BitBtc with 25000 btsx.

Now what I have is this:
50000 btsx
25000 btsx worth of bitusd
25000 btsx worth of bitbtc

If the price of btsx goes up (against usd and btc obviously)then my btsx can buy more bitusd and bitbtc and visa versa ,what it does effectively is keeping my initial 100000 btsx  at the same value I started with no matter how the market moves plus the interest on my bit assets holdings as proposed by BM here- 
https://bitsharestalk.org/index.php?topic=8396.0

In the long run this strategy will give you big leverage against any crypto currency or crypto asset that went down in value during the same time.

Does this sound right or I am missing something?







 
« Last Edit: September 07, 2014, 09:55:26 AM by srcgpsmp »

Offline Shentist

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Re: BTSX portfolio manegment
« Reply #1 on: September 07, 2014, 04:48:25 PM »
the question is - what did you wanted to achieve with this allocation?

Offline srcgpsmp

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Re: BTSX portfolio manegment
« Reply #2 on: September 07, 2014, 04:54:33 PM »
Btsx and bit asset exposure without volatility risk plus interest .

Offline bytemaster

Re: BTSX portfolio manegment
« Reply #3 on: September 07, 2014, 07:15:33 PM »
Go short/long at the same time.   If the short "wins" then borrow real USD to buy the USD necessary to cover and claim your profits, then repay the real USD from those profits.  If the "short" loses, cover with your long position and keep your long yield.   

This will give you a position better than just holding BTSX.    The trick is that this position requires your "short" to be matched which means you have to buy at or above the median feed.   Ie: supporting the peg *and* you must pay more than all the other shorts.   The good news is that if people do this then it will end up supporting the PEG *AND* paying a high yield on USD.... thus greatly increasing demand for USD *AND* thus increasing the value of BTSX which then maximizes your real investment in BTSX.

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Offline soniq

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Re: BTSX portfolio manegment
« Reply #4 on: September 07, 2014, 07:45:53 PM »
Go short/long at the same time.   If the short "wins" then borrow real USD to buy the USD necessary to cover and claim your profits, then repay the real USD from those profits.  If the "short" loses, cover with your long position and keep your long yield.   

This will give you a position better than just holding BTSX.    The trick is that this position requires your "short" to be matched which means you have to buy at or above the median feed.   Ie: supporting the peg *and* you must pay more than all the other shorts.   The good news is that if people do this then it will end up supporting the PEG *AND* paying a high yield on USD.... thus greatly increasing demand for USD *AND* thus increasing the value of BTSX which then maximizes your real investment in BTSX.

So  if you have 100000 BTSX  you should  take 50000 BTSX  and buy BitUSD  and the other 50000 you should short BitUSD?

So what is "at or above median feed"?  the numbers listed beside "Range"?


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Offline mf-tzo

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Re: BTSX portfolio manegment
« Reply #5 on: September 07, 2014, 08:29:03 PM »
Quote
This will give you a position better than just holding BTSX.    The trick is that this position requires your "short" to be matched which means you have to buy at or above the median feed.   Ie: supporting the peg *and* you must pay more than all the other shorts.   The good news is that if people do this then it will end up supporting the PEG *AND* paying a high yield on USD.... thus greatly increasing demand for USD *AND* thus increasing the value of BTSX which then maximizes your real investment in BTSX.

Sorry can you give us a simple example with specific numbers? running a bit slow here...

Offline jernau

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Re: BTSX portfolio manegment
« Reply #6 on: September 08, 2014, 07:26:40 AM »
Just to be crystal clear, before I do something I regret:

1. I use the 'Short BitUSD' option to purchase x BitUSD at a price that is higher than the 'current highest bid' (that is listed immediately below the 'price' box.

2. I use the 'Buy BitUSD' option (this is the going long option) to purchase x BitUSD at a price that is higher than the the 'Median Price' (that is listed below the BitUSD : BTSX in the top right of the GUI)

This way, I am effectively borrowing from myself so that I am my own broker?
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Offline serejandmyself

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Re: BTSX portfolio manegment
« Reply #7 on: September 08, 2014, 07:48:48 AM »
Just to be crystal clear, before I do something I regret:

1. I use the 'Short BitUSD' option to purchase x BitUSD at a price that is higher than the 'current highest bid' (that is listed immediately below the 'price' box.

2. I use the 'Buy BitUSD' option (this is the going long option) to purchase x BitUSD at a price that is higher than the the 'Median Price' (that is listed below the BitUSD : BTSX in the top right of the GUI)

This way, I am effectively borrowing from myself so that I am my own broker?

im missing something, any chance for another explanation?
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Online leon

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Re: BTSX portfolio manegment
« Reply #8 on: September 08, 2014, 01:01:34 PM »
I think it's simple as that:you go short\long at the same tame and it's a win\win situation.If the short "wins " than you cover your position at a profit (repaying your short)  ,if "loses" than you're  still in plus by going long on a bit asset (receiving interest on that).
Sorry guys if I'm wrong ...but so far it's how i see it  :) :) :) :)

Offline Xeldal

Re: BTSX portfolio manegment
« Reply #9 on: September 08, 2014, 03:13:55 PM »
Go short/long at the same time.   If the short "wins" then borrow real USD to buy the USD necessary to cover and claim your profits, then repay the real USD from those profits.  If the "short" loses, cover with your long position and keep your long yield.   

This will give you a position better than just holding BTSX.    The trick is that this position requires your "short" to be matched which means you have to buy at or above the median feed.   Ie: supporting the peg *and* you must pay more than all the other shorts.   The good news is that if people do this then it will end up supporting the PEG *AND* paying a high yield on USD.... thus greatly increasing demand for USD *AND* thus increasing the value of BTSX which then maximizes your real investment in BTSX.

I think this needs some clarification as it may be misleading some. 

If your short wins, your bitUSD long loses. Whatever you gained by going short, you lost by going long.(equally Vic-a-versa)  All you net from this deal in either case is the interest earned on the bitUSD long.  Also, If it requires you to buy up the bitUSD order book to enact this trade then you've lost this net balance as well, and your overexposed to bitUSD.

It does support the peg though, and this should lead to higher BTSX valuation, but don't think that your increasing your BTSX exposure with this plan.  If your simply interested in capturing the interest on bitUSD or supporting the peg, this is a good way to do it with little risk, provided you don't have to buy up the book to enact it.

Going short/long at the same time is equivalent to holding BTSX with an option to double your stake at todays prices at any time.

I don't think this is true.  The second half of this 'double stake' was spent in the initial trade to purchase the bitUSD to balance the short.

Please correct me if I'm wrong.

Offline bytemaster

Re: BTSX portfolio manegment
« Reply #10 on: September 08, 2014, 05:18:13 PM »
I was wrong. All you gain is btsx plus interest on usd.
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

 

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