Author Topic: Why there is so little trading volume on the DEX  (Read 6737 times)

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Offline lil_jay890

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Why there is so little trading volume on the DEX
« on: February 06, 2016, 04:42:47 pm »
For a while now people have been trying to figure out why there is so little trading volume on the DEX.  I've traded forex and stocks for over 10 years and have written dozens of trading bots (Expert Advisors) in the mql language.  I've turned $2,500 into $50,000 in 6 months.  I've also turned $50,000 into $20,000 in 6 months as well. I think I have a pretty good idea of what traders need and expect from a platform.

1. Shorting in the DEX is cumbersome and confusing
I recently tried to short using the DEX.  I borrowed CNY and then sold that CNY for BTS.  I ended up getting margin called as BTS fell in price.  I'm ok with being wrong about a position, but I'm very confused with the mechanics of how this happened.  I also had no idea what my position was worth throughout the trade, and I'm not even entirely sure how much I lost.  Shorting needs to be streamlined and simplified.  The borrow/sell thing is too many steps and not knowing the positions value during the trade is borderline scary.

2.Is there a way to put a stop loss or take profit order?
Because right now I can't figure out how to do it.  This means there is no money management ability.  Without the ability to manage a trade, the DEX is unusable for serious traders.  There needs to be at a minim stop loss orders.  There really should be a way to put trailing stops in as well.

3.Indicators are shaky at best
Right now there are 4 indicators and 2 of them are moving averages.  The RSI doesn't appear to be working as the only reading I see on the more liquid markets are 100, 50, or 0.  It looks like an EKG witch tells me something isn't working correctly.  Not all traders use indicators, but many do.

These are just basic GUI things that are preventing traders from using the DEX.  It doesn't even include the inability to use leverage.  Just fixing the 3 things above will bring much more utility and liquidity to the dex.  I will guarantee it.  The people that originally designed the DEX were not traders.  They thought poloniex was a good interface to base their platform on.  Unfortunately, poloniex is not a good platform.  A professional trader would never use Poloniex.  Poloniex's platform is modeled off some cheap retail trading platform.

How do we fix this??
Right now we are consumed by petty fee debates and if we should keep calling ourselves DPOS.  These things are not that important right now.  It's not what will drive mainstream traders to the BTS platform.  What is needed is A PLUGIN FOR METATRADER 4.  While it isn't the most sophisticated trading platform, it's the most widely used and known.  It's also light years ahead of the current DEX.  What I propose is that instead of [member=11]dannotestein[/member] and blocktrades using a worker proposal to fix basic blockchain bugs, rather is work on creating a plugin for MT4.  They are already an exchange and have a good understanding of BTS.  I know it's not as easy as fixing "bad coding techniques", but getting this plugin for BTS would do more to improve the market cap and utility than anything else.

Offline Akado

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Re: Why there is so little trading volume on the DEX
« Reply #1 on: February 06, 2016, 05:14:25 pm »
I think this is the type of stuff that should be discussed. I'm not a trader and couldn't help noticing any of that but I'm glad you shared your opinions on it. We need more people like this. More input from traders. Base our work on that and listen to them.

Fee debate isn't as important as this atm, imo. This should be the priority.

« Last Edit: February 06, 2016, 05:17:00 pm by Akado »
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Offline monsterer

Re: Why there is so little trading volume on the DEX
« Reply #2 on: February 06, 2016, 06:08:31 pm »
What is needed is A PLUGIN FOR METATRADER 4

Discussion of what is needed for this here: https://bitsharestalk.org/index.php/topic,19816.0.html
My opinions do not represent those of metaexchange unless explicitly stated.
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Offline Pheonike

Re: Why there is so little trading volume on the DEX
« Reply #3 on: February 06, 2016, 08:29:21 pm »
What is needed is A PLUGIN FOR METATRADER 4

Discussion of what is needed for this here: https://bitsharestalk.org/index.php/topic,19816.0.html
Bug fixes are important but I agree that tools for pro traders are critical. Plus this could be added feature to entice users to LTM or AM.

Offline karnal

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Re: Why there is so little trading volume on the DEX
« Reply #4 on: February 06, 2016, 09:30:34 pm »
I think this is the type of stuff that should be discussed. I'm not a trader and couldn't help noticing any of that but I'm glad you shared your opinions on it. We need more people like this. More input from traders. Base our work on that and listen to them.

+5%

julian1

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Re: Why there is so little trading volume on the DEX
« Reply #5 on: February 06, 2016, 10:16:55 pm »
+5%. It only needs to offer a few premium stocks, commodities and currencies. Integrated into a standard trading platform. A way for newbie traders to gain real exposure but without having to obtain a broker account/ meet kyc requirements. Working out the stop-loss integration might be complicated.

jakub

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Re: Why there is so little trading volume on the DEX
« Reply #6 on: February 07, 2016, 08:52:18 pm »
[member=23744]lil_jay890[/member]
I agree with you that a MT plugin would be a big milestone for BitShares.

Why don't you write a formal BSIP?
It helped in my case. Back in December, when I started a thread about percentage-based fees,  the idea did not get much attention until... I turned it into a formal BSIP. This attracted abit to take on the task of turning it into code.

So it worked like this:
idea -> BSIP -> a coder comes along -> the idea becomes doable -> people start treating the idea seriously -> worker proposal

EDIT: And do it as FBA.
« Last Edit: February 07, 2016, 08:55:34 pm by jakub »

Offline noisy

Re: Why there is so little trading volume on the DEX
« Reply #7 on: February 08, 2016, 01:08:01 am »
EDIT: And do it as FBA.

What is FBA?
Take a look on: https://bitsharestalk.org/index.php/topic,19625.msg251894.html - I have a crazy idea - lets convince cryptonomex developers to use livecoding.tv

Offline onceuponatime

Re: Why there is so little trading volume on the DEX
« Reply #8 on: February 08, 2016, 01:19:19 am »

Offline Thom

Re: Why there is so little trading volume on the DEX
« Reply #9 on: February 08, 2016, 01:46:58 am »
EDIT: And do it as FBA.

What is FBA?

FBA = fee backed asset

Actually isn't it "Feature" Backed Asset? Fees don't have to originate from a feature, but the entire concept arose from the idea of selling the revenue stream from a feature, that feature being confidential transactions. It's a minor nit, since the revenue stream comes from using the feature, i.e. there is a fee for it's use and that is the source of the revenue. Fee Backed Asset doesn't convey the heart & soul of the concept IMO.
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Offline xeroc

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Re: Why there is so little trading volume on the DEX
« Reply #10 on: February 08, 2016, 09:09:50 am »
EDIT: And do it as FBA.

What is FBA?

FBA = fee backed asset

Actually isn't it "Feature" Backed Asset? Fees don't have to originate from a feature, but the entire concept arose from the idea of selling the revenue stream from a feature, that feature being confidential transactions. It's a minor nit, since the revenue stream comes from using the feature, i.e. there is a fee for it's use and that is the source of the revenue. Fee Backed Asset doesn't convey the heart & soul of the concept IMO.
The idea of integrating BTS into MT4 is great, but I don't see how this could be fund by FBA. You could however take a percentage of trades from those that use MT4 simply buy putting another operation into transactions that transfer funds .. or some subscription model ..
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Offline abit

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Re: Why there is so little trading volume on the DEX
« Reply #11 on: February 08, 2016, 02:31:02 pm »
EDIT: And do it as FBA.

What is FBA?

FBA = fee backed asset

Actually isn't it "Feature" Backed Asset? Fees don't have to originate from a feature, but the entire concept arose from the idea of selling the revenue stream from a feature, that feature being confidential transactions. It's a minor nit, since the revenue stream comes from using the feature, i.e. there is a fee for it's use and that is the source of the revenue. Fee Backed Asset doesn't convey the heart & soul of the concept IMO.
The idea of integrating BTS into MT4 is great, but I don't see how this could be fund by FBA. You could however take a percentage of trades from those that use MT4 simply buy putting another operation into transactions that transfer funds .. or some subscription model ..
Income after developed such plugin are from the MT4 side. License fee.
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Offline morpheus

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Re: Why there is so little trading volume on the DEX
« Reply #12 on: February 08, 2016, 06:48:15 pm »
EDIT: And do it as FBA.

What is FBA?

FBA = fee backed asset

Actually isn't it "Feature" Backed Asset? Fees don't have to originate from a feature, but the entire concept arose from the idea of selling the revenue stream from a feature, that feature being confidential transactions. It's a minor nit, since the revenue stream comes from using the feature, i.e. there is a fee for it's use and that is the source of the revenue. Fee Backed Asset doesn't convey the heart & soul of the concept IMO.
The idea of integrating BTS into MT4 is great, but I don't see how this could be fund by FBA. You could however take a percentage of trades from those that use MT4 simply buy putting another operation into transactions that transfer funds .. or some subscription model ..

Could MT4 not generate income through referral fees by users who sign up through MT4?  Isn't that the whole point of the referral program.

Offline lil_jay890

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Re: Why there is so little trading volume on the DEX
« Reply #13 on: February 08, 2016, 06:59:53 pm »
EDIT: And do it as FBA.

What is FBA?

FBA = fee backed asset

Actually isn't it "Feature" Backed Asset? Fees don't have to originate from a feature, but the entire concept arose from the idea of selling the revenue stream from a feature, that feature being confidential transactions. It's a minor nit, since the revenue stream comes from using the feature, i.e. there is a fee for it's use and that is the source of the revenue. Fee Backed Asset doesn't convey the heart & soul of the concept IMO.
The idea of integrating BTS into MT4 is great, but I don't see how this could be fund by FBA. You could however take a percentage of trades from those that use MT4 simply buy putting another operation into transactions that transfer funds .. or some subscription model ..

Could MT4 not generate income through referral fees by users who sign up through MT4?  Isn't that the whole point of the referral program.

That is the only way I figure an MT4 integration would be able to make money... FBA doesn't seem possible.

Too bad a lot of committee members want to destroy the referral program.

Offline xeroc

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Re: Why there is so little trading volume on the DEX
« Reply #14 on: February 08, 2016, 08:52:51 pm »


Too bad a lot of committee members want to destroy the referral program.
that is simply not true and you should know it better

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