196
General Discussion / Re: We can all help liquidity grow and help get a tighter peg
« on: January 02, 2016, 04:43:48 pm »
Bots should never place orders that consume the book, they should always leave orders on the book.
A smart bot will use automatic timeouts on their orders so that if their network connection goes down their orders will automatically get canceled before the price can move too far.
A bot needs to operate with enough spread that they can resell their inventory and maintain a neutral balance sheet before the market price can change enough to consume the spread.
The MAKER proposal would provide financial incentive for the participants and greatly reduce the risks to the market makers.
We should focus on only one BTS/BITASSET market. Probably CNY or USD. Then we should have market making in the CNY/USD market where the risks are lower.
A smart bot will use automatic timeouts on their orders so that if their network connection goes down their orders will automatically get canceled before the price can move too far.
A bot needs to operate with enough spread that they can resell their inventory and maintain a neutral balance sheet before the market price can change enough to consume the spread.
The MAKER proposal would provide financial incentive for the participants and greatly reduce the risks to the market makers.
We should focus on only one BTS/BITASSET market. Probably CNY or USD. Then we should have market making in the CNY/USD market where the risks are lower.