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Offline emski

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Food For Thought
« on: September 19, 2014, 08:49:13 AM »

We've seen a lot of examples where automated traders drive the price significantly upwards/downwards.
This is more likely to happen in shallow markets like BTSX bitAsset markets.
And it is even more troublesome when you can flash-lose collateral due to margin calls.
I think providing open source bots that might be similarly configured will only make such scenarios more likely.
Regardless of that anyone with sufficient capital could drive prices upwards and downwards as he pleases in order to harvest as much collateral as possible. Note this is not fault of BitsharesX but is due to the shallow market.
Furthermore anyone with lower capital and some knowledge about the configuration of the automated traders could also try to exploit this.

I'm not saying that the system is flawed in any way. It is just young and market needs more depth.

BTW: about the depth part I'm sure crosschain trading BTC<->BTSX will do miracles. You can see my proposals about this here: https://bitsharestalk.org/index.php?topic=9075.0

Offline nomoreheroes7

Re: Food For Thought
« Reply #1 on: September 19, 2014, 09:48:34 AM »
I agree this is very important. I've already had an issue with being margin called during a flash buy of BitCNY, when the actual price of BTSX/CNY on the exchanges never came close to that price.

Offline GaltReport

Re: Food For Thought
« Reply #2 on: September 19, 2014, 11:05:49 AM »
We've seen a lot of examples where automated traders drive the price significantly upwards/downwards.
This is more likely to happen in shallow markets like BTSX bitAsset markets.
And it is even more troublesome when you can flash-lose collateral due to margin calls.
I think providing open source bots that might be similarly configured will only make such scenarios more likely.
Regardless of that anyone with sufficient capital could drive prices upwards and downwards as he pleases in order to harvest as much collateral as possible. Note this is not fault of BitsharesX but is due to the shallow market.
Furthermore anyone with lower capital and some knowledge about the configuration of the automated traders could also try to exploit this.

I'm not saying that the system is flawed in any way. It is just young and market needs more depth.

BTW: about the depth part I'm sure crosschain trading BTC<->BTSX will do miracles. You can see my proposals about this here: https://bitsharestalk.org/index.php?topic=9075.0

I've been reading your posts.  Sounds very interesting.  Has BM weighed in on it yet?  I'm curious what his thoughts are on that. 

Offline emski

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Re: Food For Thought
« Reply #3 on: September 19, 2014, 11:12:46 AM »
I've been reading your posts.  Sounds very interesting.  Has BM weighed in on it yet?  I'm curious what his thoughts are on that.

Haven't seen him comment on that. He seems rather busy with the market engine. I'm not convinced further tinkering with market engine will produce much better results. Peg is enforced, and expectations fulfilled. What is missing is product polishing and market depth.

 

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