BitShares Forum

Main => General Discussion => Topic started by: bytemaster on August 26, 2014, 06:28:02 am

Title: Arbitrage Opportunity... BitUSD bids are above market..
Post by: bytemaster on August 26, 2014, 06:28:02 am
Anyone wanting to buy some cheap BitUSD has an opportunity to get in right now...
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: gyhy on August 26, 2014, 06:29:21 am
 +5%
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: bytemaster on August 26, 2014, 06:35:58 am
That didn't last long
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: CoinHoarder on August 26, 2014, 06:38:27 am
That didn't last long

Ya glad I'm didn't pull the trigger.. I had the order in, just had to click accept and it dropped even more. :)

I think it could go a little lower.. bter isn't looking so good right now.
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: CoinHoarder on August 26, 2014, 07:03:12 am
FYI-

on buy side, 18.5000 showing up above 18.50

The 18.5000 is me, I had typed in 18.500001 or something like that.. not sure if I'm selling at that and the number is truncated or if I'm selling at 18.5 and it's a glitch of some sort since I'm priority to the other 18.5

18.5000   350.00   6,475.00035
18.50   10,000.00   185,000.00
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: cygnify on August 26, 2014, 07:15:23 am
My order history isn't actually in order of time/date. Anyone else get that?
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: bitmeat on August 26, 2014, 07:21:39 am
Bytemaster, I'm thinking the tool that I was going to do for the feeds, could be repurposed into a bot via the RPC, for interested folks who would:

1) profit from market inefficiencies
2) stabilize the system by running it

Any ideas on how to fund such project? have delegates who fund it get votes from the market participants?
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: emski on August 26, 2014, 07:26:05 am
Bytemaster, I'm thinking the tool that I was going to do for the feeds, could be repurposed into a bot via the RPC, for interested folks who would:

1) profit from market inefficiencies
2) stabilize the system by running it

Any ideas on how to fund such project? have delegates who fund it get votes from the market participants?
You can propose this project to be funded by angel delegate. Not much aquired so far but it is doable. There is no other proposed projects (except one I plan to propose myself but some competition is OK).
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: toast on August 26, 2014, 07:27:59 am
Bytemaster, I'm thinking the tool that I was going to do for the feeds, could be repurposed into a bot via the RPC, for interested folks who would:

1) profit from market inefficiencies
2) stabilize the system by running it

Any ideas on how to fund such project? have delegates who fund it get votes from the market participants?

Or just let people do it because it's profitable?
I wrote a shitty 200-line bot and made $~50 so far. Maybe I will do more work and make a better bot, then I will get paid more.
Why do you need AGS for this?
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: toast on August 26, 2014, 07:29:25 am
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
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: tonyk on August 26, 2014, 07:30:38 am
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?
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: bitmeat on August 26, 2014, 07:34:25 am
Or just let people do it because it's profitable?
I wrote a shitty 200-line bot and made $~50 so far. Maybe I will do more work and make a better bot, then I will get paid more.
Why do you need AGS for this?

I didn't mean AGS funding. Also, you need to take into account liquidity if you deal with some serious amounts. Yes a silly bot will do just fine if there is a wide spread. But for BitUSD to hold value you need a more responsive and tight spread liquidity.
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: bitmeat on August 26, 2014, 07:41:52 am
As an example: BitUSD bids are way below market now. However liquidity is very thin, volatility is high, and there are no real buyers of BitUSD to help track the real price.
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: bobohuy on August 26, 2014, 07:49:54 am
In bter.com, bid price for bitUSD/BTC is around 0.0023 and ask is 0.0021 . Why ask less than bid? And if 1 bitUSD = 1 USD then 1 bitUSD should be around 0.0019 BTC now. Why ppl want to buy at 0.0023? Any explain please
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: bitmeat on August 26, 2014, 07:56:13 am
From BTER current price:

BTSX/BTC 0.00008669
BTSX/USD 0.04395183
USD/BTSX 22.75218119

So price should be 22.75, however there are no buyers of BitUSD at the moment.
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: cygnify on August 26, 2014, 09:01:54 am
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.

(http://i.imgur.com/H2q5LZO.png)
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: CLains on August 26, 2014, 10:31:09 am
That didn't last long

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

 +5%
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: bitmeat on August 26, 2014, 03:09:08 pm
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
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: mf-tzo on August 26, 2014, 03:36:04 pm
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...



Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: oldman on August 26, 2014, 05:02:42 pm
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%
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: toast on August 26, 2014, 05:04:50 pm
I'm against it putting feeds directly in the client, it ties us to a source of failure
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: toast on August 26, 2014, 05:05:02 pm
if most people are just lazy and check the feeds.
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: JakeThePanda on August 26, 2014, 05:06:52 pm
I think we need to give the market time to get settled in.  Arb will bring everything in line.  I think.  :-\
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: mf-tzo on August 26, 2014, 05:13:09 pm
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
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: liondani on August 26, 2014, 05:40:59 pm
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
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: Gentso1 on August 26, 2014, 06:12:11 pm
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
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: luckybit on August 26, 2014, 09:59:08 pm
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.

Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: oldman on August 26, 2014, 10:51:20 pm
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.
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: Riverhead on August 26, 2014, 10:56:24 pm
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 :).
Title: Re: Arbitrage Opportunity... BitUSD bids are above market..
Post by: JakeThePanda on August 27, 2014, 01:51:29 am
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.