Since the DDOS yesterday, MtGox turned off API support for anything calling the older
https://mtgox.com/api pages and is now only allowing orders to be placed through their data.mtgox.com url calls.
I haven't looked on the forum much but didnt see this announced anywhere. Over the next few days I imagine others who run bots will pick up on this, fix their code and re-start their bots.
*edit* To clarify, I believe the API functions to query order response / account data were changed.
Plz forgive my ignorance. Are the bots hostile toward Mtgox?
No, when I talk about bots, I mean the scripts that are written to trade on mtgox through their API. These scripts usually trade high volume (much more volume than users using the website interface).
Why do they use these bots? Do they analyzing data, and buying and selling btc automatically?
I run a market making bot. It maintains orders on both sides of the book at 1.3% intervals. When my buy orders are filled, it places a sell 1.3% higher. When my sell orders are filled, it places a buy 1.3% lower. I lose out when it trends continuously, but it stabilizes price and I turn a profit when the bulls and bears duke it out. By keeping orders on the book, I help make it possible for companies like bitpay that need to accurately price and immediately convert bitcoins to USD and companies like bitinstant and coinbase that need to go the other way.
That is genuinely fascinating. Thanks for telling us how your operation works. Now here's a man who knows how percentages work. Do you mind if I ask a question plz? How efficient is the following trading method? Use the MACD to mark buy and sells, and when there is uncertainly or very weak trends, go half in. Basically hedge both ways. Is this an ok method? any suggestions would be appreciated plz?
1.3% intervals is obviously a figure you've arrived at after a great deal of trial?
I'm not sure I'd trust a single signal to trade on. If you're looking for something simple, a balancing strategy is decent. Basically, you keep 50% of your value in bitcoin and 50% in USD and rebalance once a week or so to maintain the ratio. Obviously, you can use any ratio you want. Keep a little more in bitcoin when things look bullish, keep a little more in fiat when you're bearish.
I wouldn't rely solely on one indicator. But MACD might be a primary, and refer to others to paint a more detailed picture. I've only been learning about indicators the last few days, so have a lot to learn.
I have no idea where to start with bots. Where to get one, or how to use it. I'm curious about such things, but probably dont have enough time or money to invest in btc to make it worth while. Or is it simpler than I might think?
Thanks again for your advice. I have some work to do on my trading method, and your a big help