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They're going to give new tools to institutional traders. Co-location, FIX market data, lending & margin financing products, professional crypto secure storage
by lisbakke 8y ago
They're going to give new tools to institutional traders. Co-location, FIX market data, lending & margin financing products, professional crypto secure storage ('coinbase custody') etc. etc. They'll be faster than non-institutions and have trading options unavailable to the rest of us.
Read this https://blog.coinbase.com/coinbase-institutional-deea317d23af https://blog.coinbase.com/coinbase-institutional-deea317d23a...
Right now, the institutions have to play on a level playing field with us one-man teams.
This suite of products will give them their pay-to-win advantages to keep us little guys from being the fastest and best in the market.
I have the fastest bot on GDAX right now, that will only last until these new services are introduced -- since I can't afford to pay $XXk a month for the privilege.
Edit: If you're reading this from your chair at a HFT firm, send me a message if your company is interested in the fastest bot :)
- btown 8y agoIt’s almost like capital tends to concentrate in the absence of regulated financial markets or something...
- AndrewBissell 8y agoYes, none of these things the OP described exist in the regulated markets such as equities, bonds, or futures.
- fwdpropaganda 8y agoYou're talking past each other. Regulation is not a binary thing.
- tradedash 8y agohttps://www.amazon.com/Flash-Boys-Wall-Street-Revolt/dp/0393351599 https://www.amazon.com/Flash-Boys-Wall-Street-Revolt/dp/0393...
- anfogoat 8y agoTwo words that perfectly describe financial regulation: accredited investor. Now, what was that about capital concentration?
- icedchai 8y agoYou think so? Due to inflation, I think the bar for "accredited investor" feels pretty low these days. HN must be full of middle class individuals with $1M+ USD networth.
- otoburb 8y ago>>HN must be full of middle class individuals with $1M+ USD networth. For the HN demographic that doesn't own a house and "only" pays rent, I'd agree with you. But another portion of the HN demographic that does own a flat or property may not qualify, as the definition of an accredited investor (at least in the US[1]) is $1M+ USD of investible assets excluding their primary residence. [1] https://en.wikipedia.org/wiki/Accredited_investor#United_States https://en.wikipedia.org/wiki/Accredited_investor#United_Sta...
- sokoloff 8y agoSome of this demographic will meet the other (income) test: a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year
- sokoloff 8y agoIMO, the SEC accredited investor rules are in place to make it a federal crime to scam non-accredited investors. Though I tend to be anti-regulation in general, I think these are good laws as I can only imagine how many investment scams would be running otherwise.
- CryptoPunk 8y agoThey make it a federal crime to offer securities to non-wealthy people. Characterizing all such offers as scams is a prejudicial over-simplification, and the kind of sweeping and presumptive generalization that rationalizes repression.
- CryptoPunk 8y agoThe regulated financial sector is incredibly concentrated, and often it became regulated as a result of lobbying by large financial firms. New York's Bitlicense for example was lobbied for by banks and it resulted in all but the largest cryptocurrency firms exiting New York.
- andruby 8y agoHow can I contact you? ;) Not at hft but also ran a fast bot.
- benmanns 8y agoIf you're the fastest and you don't make > $XXk a month then why would an institutional client pay $XXk per month for better access?
- lisbakke 8y agoI don't have access to capital so I can't scale to $XXk a month.
- deleted 8y ago[deleted]
- jcfrei 8y agoIf you really do HFT trading I'd be more curious to know whether your algorithms can scale up and remain profitable with more exposure. If that were the case acquiring more capital shouldn't really be an issue for you.
- pwhelan 8y agoIt would seem that anyone who could consistently arbitrage a currency OR synthetically front run transactions would be able to capture a great deal of value extremely quickly. Further, they should have an easily identifiable and intelligible record of success. Have a pitch deck ready if you don't already. Either one should either generate the capital you need, get your system bought by a big player, or get you hired with a big salary by a big player. Let us know how it turns out!
- lisbakke 8y agoWill do, thanks for the advice!
- Berone 8y agoCan you send me an email? I'm interested in talking with you
- deleted 8y ago
- jstanley 8y agoOut of interest what's your 30-day volume? You can find it in the "MY FEES" page of the GDAX UI.
- chollida1 8y agoBold claim, and funnily enough, you are the 3rd or 4th team I've run into this week that claim to be the fastest trading system on GDAX. The Consensus conference brings out these kind of conversations:) What are you basing your claim off of, I've seen some pretty impressive use of C++ and one team that is starting to burn simple strategies into FPGA's. What sort of time from network stack to network stack are you consistently getting? ie time from when your network card receives a message until when your network card gets your reply? That's a standard HFT measurement.
- lisbakke 8y agoYou're probably thinking of my post from a few weeks ago in this thread https://news.ycombinator.com/item?id=16922538 https://news.ycombinator.com/item?id=16922538 I'm tracking order positions with an in memory orderbook. When gdax accepts my order I know where I end up. I average spot 1.45 when the spread changes. It's hard to get closer to perfect 1.00 because of limit taker orders which, if placed right, always get 1.00 after the taker portion is calculated and the maker is placed 1 cent from other other side.
- alephnan 8y ago> I'm tracking order positions with an in memory orderbook. Yes, but you still didn't address the question of what are you basing your claim of being the fastest off of.
- lisbakke 8y agoWhat?
- tqkxzugoaupvwqr 8y agoHe asked you how you know your bot is the fastest, and if you can prove it.
- 8y ago
- notyourday 8y agoBecause you totally need a fastest bot on a trading network that has problem confirming transactions
- Mtinie 8y agoSure you do. A particular cryptotoken’s network transaction through-put is unrelated to the latency and max-events-per-time period of on-exchange trading.
- wholesale_money 8y ago"Little guys" are the products, rather than the consumers, on those platforms. This is already true to a large extent and will be true in larger and larger proportions. DRW, Jump Trading, Hudson River Trading, State Street and Virtu are all active on cryptomarkets. In fact Hudson River Trading is in bed with Blockstream: http://chaincode.com/#team http://chaincode.com/#team Very sad to witness.
- gdaxthrowaway 8y agoI've made almost $500k within a year. I don't run a bot and I don't have a financial background.
- andruby 8y agoWith manual trading? Or holding the right coins? Do you trade full time?
- gdaxthrowaway 8y agoI don't day trade, but buy & sell from time to time. I always went all in, which is apparently a bad practice that I try to avoid now.
- is_true 8y ago500k starting with 499k? Percentages are better for this.
- gdaxthrowaway 8y agoI started with 5-7k. I primarily hold, sell when the price is high and then buy the dip. I once made 30k from 400$. It's ridiculous. I bought 400$ worth of BTC a year or two ago. BTC price went up. At that point I had ~3000$. I sold BTC and bought IOTA. IOTA was pumped, I sold it for $10,000. I went all in and bought Ripple at 0.94$. They pumped the price, I was able to sell at 3$, making a whopping $30k+.
- is_true 8y agoWow. With that track record you should play the lottery.
- fwdpropaganda 8y agoHere's a thought: a trader who has to rely on being the fastest is like a retailer who has to rely on being the cheapest. (Not to diss you, you have nothing but respect from me)