Author Topic: Market Maker Instruction Manual?  (Read 2147 times)

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Offline mostar

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Hello,

I would like to be a marker maker and help to lower the spreed. But I find it difficult to implement.
The easiest option should be alt btsbots.
But it not work for me:
https://bitsharestalk.org/index.php/topic,23457.msg306513.html#msg306513
  :-[

Offline Permie

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JonnyBitcoin votes for liquidity and simplicity. Make him your proxy?
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Offline Permie

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If we want BTS to succeed. Maybe there should be a push to educate the users and how to profit from it.

Anybody knowledgeable enough to do tutorials videos on BTS bots and the DEX on how to make a quick profit?
+5%

EDIT: I just found this post. Video instructions would be even better


make a tutorial please

You need to go through several steps.

1. First, you need to create an account. Just got to btsbots.com and follow the instructions. To use your existing bitshares account, you need to import its active private key from openledger.

2. To view your account, select it from a drop down list with user icon at top-right. The account overview page shows account balance, 1 day trade volume, 28 days trade volume and 28 days balance change for each asset, their equivalent values in CNY and total value for all assets in CNY. A number at the top of the right column (trade balance(28 day)) shows you how your trading is performing. If it is positive, you are doing good. To add a new account to favorite list, type its url, e.g.

https://btsbots.com/u/exchange.btsbots

and click a little heart icon at top-right. Now you can select exchange.btsbots from the favorite list. To remove account from favorites, select it and unclick the heart icon.

3. A bitcoin icon next to user icon at top-right drops down a list of favorite assets. When you select an asset, it shows you a bunch of asset info related to trading. To add a new asset to this list, type its url, e.g.

https://btsbots.com/a/OBITS

and click a little heart icon at top-right.

4. Left column shows you a list of favorite pairs. To add a pair, type its url

https://btsbots.com/m/BTS_USD

and click a little heart icon at top-right. You can invert base vs counter asset by typing "inverted" url

https://btsbots.com/m/USD_BTS

A number against each pair shows a feed price. It is different from openledger feed price, because it is updated more frequently.

5. Once you selected a market, you can start trading.

 5a. You can place an order manually by pressing "buy" or "sell" buttons or;

 5b. You can set up a bot to make trading for you by pressing "bot" button.

   - First, you set up a spread relative to feed price. A number in the "Spread" field on the left means that you are buying at feed_price/(1+X/100). A number in the "Spread" field on the right means that you are selling at feed_price*(1+X/100).  X may be positive, negative or zero.

   - Next, you need to set the amount to trade denominated in CNY (why not just the amount of traded asset?).
   
   - Finally, check "Enable Bot" box at top-right, lean back and relax. The bot will update orders for you when the price moves. If the order is taken, the bot will continue to place new orders until funds are available or until you stop it. To stop the bot, uncheck "Enable Bot" box or place 0 for order amount.

In order for bot to keep running, you need to keep btsbots.com page opened and device connected to internet. You can check your account status or change bot params from any other device, just go to btsbots.com and import your active private key. You can trade more than one pair at same time using the same account. I am currently trading 15 different pairs and the bot is doing a great job. No way I could manage this manually.

P.S. Btsbots is a trade oriented client. If you want to use such features of bitshares as bitAsset shorting, voting or change permissions, you'll need to use the official client. It would be so great if two of them were merged together.
« Last Edit: March 22, 2017, 10:47:38 pm by Permie »
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Offline rgcrypto

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ok. This is a very important topic because it is exactly what's going through my mind right now.

I want to provide liquidity to the market as a BTS holder but I have no clue how to do this.

There is BTSbot, but I have no clue what I am doing. There is no tutorial or anything to help me make sense of it. Should I use 1% spread? -1% spread? On the sell side? Buy side?

If we want BTS to succeed. Maybe there should be a push to educate the users and how to profit from it.

Anybody knowledgeable enough to do tutorials videos on BTS bots and the DEX on how to make a quick profit?

Offline yvv

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Quote
We need to make BitUSD a liquid asset. But how?

You need USD on/off ramps in every local area for this.

Offline Permie

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Hello everyone,
I believe that it should  be a regular thing for bitshares-holders to set aside a few % of their investment to become a 'market maker' on the DEX.
This is a profitable endeavor. So you will be earning a % on the fiat-value of your investment.

I don't know much about how to trade on the DEX, or how safe it is.
So I'm making this post to try and gather more accessible information that shareholders who read this forum will be able to use to benefit the bitshares network.
@JonnyBitcoin has written the most extensive information that I can find so far

http://www.investopedia.com/terms/m/marketmaker.asp

Excerpt:

Quote
What is a 'Market Maker'

A market maker is a broker-dealer firm that assumes the risk of holding a certain number of shares of a particular security in order to facilitate the trading of that security. Each market maker competes for customer order flow by displaying buy and sell quotations for a guaranteed number of shares, and once an order is received from a buyer, the market maker immediately sells from its own inventory or seeks an offsetting order. The Nasdaq is the prime example of an operation of market makers, given that there are more than 500 member firms that act as Nasdaq market makers, keeping the financial markets running efficiently.

Read more: Market Maker Definition | Investopedia http://www.investopedia.com/terms/m/marketmaker.asp#ixzz4c3jvFhmo
Follow us: Investopedia on Facebook

How large does a BitShares Market Maker have to be in order to make a difference to the smooth-running of the bts network?
I would guess even $1-10 would be a big help to BitShares

Are there any instructions on how to do this?
How can a shareholder act as a 'market maker' on the BitShares DEX?

BitShares the network runs for the shareholders, by the shareholders. I think it follows that it is the responsibility of individual shareholders to help keep "the financial markets running efficiently" (Investopedia Quote).

How can shareholders do this?


Somebody please teach the shareholders the process, risks, rewards, and best ways to safeguard their bts-holdings. :)

Should they be floating 100% of their bitshares on the DEX to help 'make the market'?
Why/why not?

How much profit are market-makers likely to make?

How many $'s value do they need in initial capital to make a good profit?

How many trades are they likely to make in 1 day?

Is this high maintenance? How often do shareholders need to view their computer screen to check?

Hypothetical Scenario:
Let's say you have $10 worth of bitshares in cold storage.
You currently don't want to move these funds into a hot-wallet. It's your investment for the future and you really don't want to risk it.

Instead, you decide to purchase a new set of bitshares, for the $4 that you set aside to invest in bitshares at the end of the month. You decide you will use this $4 to become a market maker, knowing that this will help the bitshares network get established and attract new customers and investors. To help push the Price of bts: up.

You add these bts to your hot wallet and you get them onto the DEX.
You then set up trades between 2 assets, lets take bitUSD:OPEN.USDT for example. Because they both track the value of the dollar, so the relative value of each asset should remain the same. Meaning that it is less hassle, you don't have to check prices.

Firstly:
$2 are used to purchase bitUSD.
$2 are used to purchase OPEN.USDT, a bearer asset that tracks the dollar.
       
            You then place 4 orders on the DEX.
Trade 1: You place an order to buy OPEN.USDT at a price of $0.98bitUSD per US.DT.
                Successfully filling this trade would mean you now have $1.02USDT.
Trade 2: You place an order to short(sell) USDT at a price of $1.02bitUSD. If somebody           
                  accepts this trade, you will have sold your $1.02USDT for $1.04bitUSD.
Trade 3: You place an order to buy bitUSD at a price of $0.98USDT per bitUSD.
                   Successfully filling this trade would mean you now have $1.02bitUSD.
Trade 4: You place an order to short (sell) bitUSD at a price of $1.02USDT per bitUSD.

IS THIS CORRECT?

Bitshares is superior to other exchanges because it uses BitUSD which has no human liability and is decentralised.
But this advantage means little if our BitUSD is not available to buy in quantity near the peg.

A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted into cash is similar to cash itself because the asset can be sold with little impact on its value.

We need to make BitUSD a liquid asset. But how?
 

3.) BitUSD:OPEN.USDT market
The best way to show people BitUSD is worth 1 USD is to create a market where BitUSD trades against a bearer asset that is worth 1 USD.  That would be USDT (see www.tether.to)
Bearer asset = Doesn't need to be kept in a named account.
I am trying to kick start the BitUSD:OPEN.USDT market with $1000 buy and sell walls and a 6% spread. Please take advantage of them or add some orders yourself. This market pair is easy for anyone to be a market maker in because  both assets have the same face value meaning you don't have to trust bot software  because orders don't need updating

 



JonnyBitcoin votes for liquidity and simplicity. Make him your proxy?
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