Quote from: bassclef on October 28, 2013, 04:17:10 PM

Quote from: flyboy on October 27, 2013, 11:33:29 PM

Can u make a bot that starts at say X and if the value drops 2$ you buy and if it increases 4$ you sell?

Hi flyboy. That sounds good in theory, but we can't always pick the direction the market will go in. For example, if you sold after a $5 price increase, sure you lock in a small profit, but what if the price kept going up? What if it was a huge movement, like a $15 increase? What if a new bubble forms? You wouldn't want to be left behind.

That is a dangerous mindset for a trader. What if it goes higher...

I would advise people to have a realistic idea of what they want vs what they need.

Then hash out over what period of time you'll actually be content if you receive that BTC or USD.

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If you have met your trading goal for the moment, then you should cut it off and reel in your profits..rather than wait for a riskier "what if" scenario where it doubles your profits.

People who wait to see if it will go higher usually lose a ton. Take what you can get and you'll cut out a ton of those risky "wait-and-see losses" from your future.

Someone asked earlier in the thread that the price was 220+ and whether they should manually sell...Instead it looks like they let the bot sell them out at 170 or 180 instead by second guessing their own judgement about the situation.

I felt like asking that person why would you not call it, reel in a certain profit amount in the here-and-now rather than wait for a "maybe-profit" in the (unknown) future?

Quote from: bassclef on October 28, 2013, 04:17:10 PM

In the same way going down, how do we call the bottom? What if it drops $5 quickly, you buy, and then moves back upwards even higher (called a bear trap) and leaves you on the wrong side of the trade?

If it drops 5$ and you buy in, why would you want to buy in again at an even higher price?

Quote from: bassclef on October 28, 2013, 04:17:10 PM

Now you must either buy in at a higher price, or hold the cash, hoping it eventually goes back down.

Not sure what this is about....

If you are after cash and not BTC then retaining value is what is important.

If you convert 10,000 USD in a buy in(of BTC) at 130$ and you sell it (BTC) off at 137$ (for USD)....while the market goes way up to 220$, you still have the same amount of USD cash.

Even if you buy BTC at 180 you still have the same value (10,000+ in USD). As long as the BTC valuation goes up you will always win extra USD as growth happens. You'd only lose if the BTC devalues against the dollar. (goes down in price)

At that point you'd be better off converting your BTC to USD before it get back to 180 or less. As it continues to go down (lets say into the 150$ territory it only gets cheaper to buy BTC.

As long as you protect your value in USD it would be pretty hard to lose in most circumstances.

Quote from: bassclef on October 28, 2013, 04:17:10 PM

The bot watches 24/7 and attempts to mathematically put us at an advantage to profit long-term using exponential moving averages. When the market ranges between values, say $170 and $175, most trades won't be profitable and it's frustrating to watch. But when the price makes a move and begins to move strongly upwards or down, the bot ensures we are on the correct side of the trade to profit from the trend.

For example, my bot bought in correctly yesterday and rode the $10 price rise. The three trades before, however, were a small loss. The hope is that gains on the larger trends will make up for the smaller losses.

This bot (nor is EMA) good for largely unchanging exchanges with high fees.