Quote from: zhoutong on December 25, 2011, 06:03:10 AM

Quote from: cypherdoc on December 23, 2011, 11:07:06 PM

Quote from: zhoutong on December 21, 2011, 08:12:46 AM

It's important to know that currently we always have a chain of forced liquidations, because forced liquidations will push the price to trigger more forced liquidations. We will just make sure that they are fully hedged in the market and the prices are reasonable.

so how do you define "reasonable"?

no offense but your business model is doomed. especially since mtgox, the major exchange, is going to be offering similar hedging options. you will always be one step behind them in reacting to volatility as they will be the HFT and you will be the retail equivalent.

not to be mean but i think you're offering to reverse trades for those customers wiped out in the last ramp b/c if you don't your client base will never return and you need to keep them alive and in the game.

this is going to keep happening over and over again.

The point is "going to". I'm going to build breakthroughs too, and you forgot this. Bitcoinica is already using Redis to track prices, and we already have the back-end engine to process 10,000 trades per second. Who will be the first to do HFT?

The business model may be doomed in the future but definitely not now. Bitcoinica has always been changing more quickly than our competitors.

Also, I didn't reverse any trades that happens under $4.55. Sorry but the "reasonable" price range is only the obvious personal feeling. $4.55 is reasonable, and $4.89 is not. I'm the guy coding and I know the price is wrong, that's why I'm reversing. I don't claim profits that shouldn't be mine.

then why do HFT companies pay millions of USD's every year to co-locate their computers in a room next to the NYSE? mtgox IS the exchange and will be competing with you in the option business. you will never be able to measure up to their service.