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General Discussion / Re: HERTZ - Oscillating Formula Based Asset
« on: January 27, 2018, 02:04:09 am »I would like a price feed for a BTS HERTZ but that oscillates by tracking a simple 30, 14 day moving average. Still this appears difficult.
You can see the price feeds here: https://btsapi.grcnode.co.uk/home and here: http://cryptofresh.com/a/HERTZ
It wouldn't be difficult to track the price feeds, you could scrape the price feed data (https://btsapi.grcnode.co.uk/get_hertz_value?api_key=123abc) once every x mins & establish a history then plot this on a chart.
In terms of moving average, the average settlement price will be $1.00 over 28 days because it oscillates 14% equally each direction.
You could perhaps take the moving average market price, because that will account for the fluctuation in the USD:BTS market. There's certainly the potential for shorting at the stop to net more than 28% profit if BTS was to appreciate whilst your debt depreciated (and if you were able to settle your debt at the bottom).
BTS HERTZ that works by sine wave, is adding a predictable volatility to existing underling volatile price. This seems pointless. But does create an asset that tends to the state of being fully backed by 1x collateral. even large amplitude it comes back predictably to the 1:1 state.
Backed by 200% collateral, not 100% collateral. But yes, if you settle, you'll trigger a shorter's force settlement at the current settlement rate in BTS (Which could be between $0.86 & $1.14). If you mean the moving average for settlement price is useless, sure. If you mean that the purpose of hertz is pointless then I disagree, I believe that the sine wave will have a noticeable effect on the market compared to say bitUSD.
how many days you add to the average? More days you get less volatile asset but one that doesn't intersect with the price as often - which is the state of coming into being fully backed ( which is important to me ).
7, 14, 31 all seem very attractive to me.
the problem unlike a mathematical oscillation. how do you build this curve that tracks and average of the past and updates frequently.
Re: Which state is fully backed: All states should be fully backed by Bitshares, if a shorter's collateral falls below the minimum collateral ratio then the shorter is force settled.
You could track the daily market rate average, then compare that against the known settlement price range for that day.
I think we can use published price-feeds on blockchain, going back 7, 14 , 31 days to construct the average which will be weighted as well.
You could certainly track the price feeds of Hertz either via the blockchain directly or by scraping the hug rest api for the required data real time & establishing a price feed history.
