Quote from: ElectricMucus on September 19, 2011, 09:24:38 PM

I am wondering what people use to control the behavior of lets say a trade bot.

Fourier Analysis? Wavelets?
Matching the data to an elliott wave?

What other methods are there besides high frequency stuff which could be useful without buying a server next to mtgox. Lets say I want to make only a few transactions a day or only place orders. Any suggestions on where to read up on this?

I'm using a bot written in access less than 300 lines, it reactive, not predictive. Basicly is a scalping bot using a Cash to BTC ratio. It keeps lets say 50% in each, this is another variable. If it drops 5% it will buy %2.5 relative to the total value managed. If it increase 5% it will sell 2.5%. I have been playing with the ratios and how much I let it control. If the bot goes out of threshold based on last price is triggers an order. There is a little more secret sauce I'm working on but that's the basic premise. Larger the magnitude of movement the larger the Buy Or Sell. The idea is no matter what happens the bot lives to make another trade.