Quote from: Manticore on April 13, 2013, 02:05:13 PM

Quote from: ex-trader on April 12, 2013, 09:20:53 AM

Based on my experience of 20+ years trading countless billions in the real world:

1. Sort your trading code out.

2. Invest in hardware or hosting, you're making thousands or tens of thousands per day. Buy or hire a room full of the best machines you can (I'm not a tech expert). You can never go down through 'excess trading demand' - this is amateur.

3. Create a minimum trading size, the tiny bot trades of $1 are swamping the system and add nothing.

4. Forget about circuit breakers or 'cooling off', this only works when assets are only traded on only one exchange (ie NYSE/Nasdaq) which is why you do not see gold or Forex stop trading. The market continues and your customers are left helpless.

5. Get someone to be a market-maker. You need a pool of money acting as market maker, to provide some depth of liquidity to stabilise the price when the market volumes become very illiquid or erratic. Confidence is everything in this market.

6. Prove you have some depth to your security. Right now people have millions invested in exchanges and any number of them could be complete shams designed to take coins that cannot be traced. I could setup a good looking exchange in days, collect coins and money and then disappear, it's been done before, it could be done again.

Thanks for the recent 24 hours though, I doubled my coins at no cost........

I'll add....

7. Provide easy mechanism for short positions (actual short positions, not simply staying in fiat).

8. Expand derivatives markets.

Is naked short selling really good?
It will only worsen the volatility of bitcoin.
Assume i would short sell 100 000 bitcoins i dont have at mt gox, the price would crash down to 10$ in a second with an average price of maybe 30$.
Some people would panic and sell their coins and drive the price even more down, i would buy back all coins with profit with an average of maybe 10$ and could also go long at those levels.