Furthermore. In a declining market there isnt a sturdy base of buyers on exchanges. Usually a few small buy orders. With under that a lot of people who set a low buy order just in case.
With the amount of coins we dump on the market you often have more coins then genuine buy orders. So after the few coins that are sold at regular prices, you end up getting as much as 20% less for the coins. Since they have to be sold asap.
If you watch cryptsy, often you wil see a huge drop in price with a very high number of traded coins. Im pritty sure these are mostly multipools.
In an up market the demand is much fermer. So prices drop less while trading big amounts quickly.
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It may be argued that the supply and demand is the same either way, but that ignores two critical factors: the depth of the bid side, and market psychology.
If investors see that large blocks of a particular coin are periodically dumped with no regard to price, then who is going to step up and buy? Using the WDC example again because it's a market that I watch all day, and not saying that it was this pool in this particular instance, I watched it get taken down from the 44000 level to 40000 in a matter of seconds yesterday as thousands of coins were dumped. Whoever the seller was averaged at least 5-6% less than a more disciplined approach would have yielded, and meanwhile the charts show a high volume spike down of almost 10%. That's not healthy for anyone.
This is exactly what is going on - no one. Anyone who don´t see this is blind. By dumping at lowest possible price there is no place left for traders / investors and they´ll go away.
Please understand that my intent is not to flame or insult this particular pool or indeed any other pool. I do however feel that if the various auto-switching auto-exchange pools took a more disciplined and less disruptive (dare I say professional) approach to exiting their large accumulated positions, then they might simultaneously improve the general perception of them as well as increasing their users' profits.
I do, I don´t blame profit switching pools (which are in the end good to beat badly designed coins and their poor resistance to hashrate spikes) - I am blaming
autotrading profit switching pools, for their dumping at lowest possible prices just to satisfy complainers. And thats impossible anyway - with non autotrading multipools like us.trademybit.com, multipool.us or my fav ultimatecoinpool.com
You will get 30% more by selling Your coins manually and its because theese pools don´t take into account market depth, so while autotrading pools mine WDC with profitability .007 BTC per MHS (because it´ll be easy for them to sell all coins at low rates), non autotrade pools mine most profitable coins at .013+ BTC per MHS and is up to You when and with how profit You´ll sell them. You may say that its possible to turn autotrading off on HashCows, but that still not alter algorythm, designed to mine not most profitable, but most sellable coin.