I have been waiting to do this as I collect more info, but hey, let’s go for it. The pools on Bter are super profitable because they are hardly used. Nu is paying you just to stick some cash there and let it sit. Yah, Bter is a risk, but the compensation is worth it.
Step 1: Either read the trading.py code for a tllp bot and change the appropriate parameters, or download my version of the bot. Make sure you implement a reset (my bot has one) or your bot will get stuck.
Step 2: Make 2 accounts on Bter, one for BTC and one for CNY. Run 2 tllp scripts, one with BTC units for the BTC account, and one with CNY units for the CNY account.
Step 3: Use BTC/CNY on Bter and NBT/BTC on poloniex to arbitrage.
Step 4: Start your engines
If you have NBT:
Send it to the CNY account if you think BTC will be volatile today and the BTC account if you think it’s going to be a calm day. If you have too many, go back to Step 3, or send it to your wallet so you can park and participate in auctions.
If you have BTC:
- Buy NSR. I know what you’re thinking, but seriously, devote ~5-10% of your liquidity to the NSR pair. Stick your orders something like 10-15% lower than the highest buy order with volume on Poloniex.
- Keep your funds in the pool when you don’t feel like daytrading
- Sell for CNY if the price is tumbling down
- Buy other cryptos to your heart’s content (DOGE, LTC, DASH, NMC, and PPC are all fun pairs)
If you have CNY on your BTC account:
- Buy BTC if you think it’s going to go up or have low volatility
- Buy other cryptos (DOGE, LTC, DASH, NMC, PPC. CNY is pretty useful here)
- Turn this account into a CNY account (not the preferred method)
- Withdraw CNY, either to the CNY account or elsewhere (I have never used this method)
If you have CNY on you CNY account:
Just leave it in the pool. The rates are sweet for very little risk, the pool target is huge, and CNY is undervalued on Bter (but not by Nu).
If you have NSR:
- Place a high sell order for crazy amounts of profit
- Send to your wallet and start voting and participating on the forums
- Arbitrage using Poloniex, CCEDK, or Nu Auctions (burn gateways)
If you have other crypto:
Make sure you are aware how much they’re worth on other exchanges, arbitrage for BTC or NBT is often a good choice. Otherwise, be patient and keep your orders high and wait for a buyer.
Nicely done! Hove you recorded your results from this?
What kind of analysis do you use to determine what you think BTC and other cryptos are doing on a given day?
I’ve been wanting to create a trading techniques thread for a while. I’ve got a couple of fun setups that I’ll try to post soon.
It’s an art form for me, I don’t really record my results or anything, I more just trade on intuition. I use bitcoinwisdom.com and just try to read people. It’s harder to impulse buy on Bter than a lot of other places because of the low volume, but if you’re patient you can get some really good price points.
As far as guessing BTC volatility, I usually just look to recent past (I readjust my positions daily) and assume it’ll be similar if I don’t have any real reason to suspect otherwise. With my wide spread on NBT/BTC and the low trade volume, volatility isn’t even that big of an issue honestly. If you have some alarms set for when BTC undergoes a real price change, you can sell or buy off the BTC/CNY chart for quick profits, then go back to the pools.
I don’t want to take over your thread, but here’s a little teaser for a very simple chart setup that works great with bitcoin or pretty much any other market with decent volume. I hope you can find it helpful in your trading.
This is a price action setup, meaning that we read the candles to make trade decisions, but we will use a couple of simple indicators to help out. What’s needed …
- 4 Hour chart
- 200 EMA
- RSI set to 7 period (default is 14)
The main setup is called Engulfing Bar. You can read about it here: http://www.forexschoolonline.com/bullish-and-bearish-engulfing-bars-introduction-html/
This is what it looks like: https://www.tradingview.com/x/C4uMjFA9/
Rules for going long (shorts trades are the reverse):
- Price must be above the 200 EMA
- RSI must be pointed up and be above the 50 line
- Only buy if price trades above the engulfing bar within the next two candles
- Set stop loss right behind the engulfed setup bar
Here’s what the whole setup looks like: https://www.tradingview.com/x/QK0UHlj6/
There are a few other rules that are important to know about but I’ll go over all the details in my own thread. Just for fun, check this out: https://www.tradingview.com/x/aE0d45kj/
Awesome, the charts I tend to look at look like this:
So I’m looking at 5, 20, 50, and 100 EMA and MACD down at the bottom.
Is a ‘price action setup’ just fancy talk for a trading bot?
No. Price action is a method of trading that is primarily focused on reading the bars and support/resistance areas. The idea is that all the information you need is in the candles and in learning to read what they’re telling you, you have an edge on indicator based traders. This is a great thread on price action trading: http://forums.babypips.com/free-forex-trading-systems/42378-forex-price-action.html
I forgot to mention, make sure to press the big red ‘investment’ button and sign up for free additional investment by JUA. That’ll earn you another 10%/year, bumping the BTC rate up to something like %0.36/day!