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Doesn't this almost guarantee profit, as long as the average price doesn't come down too much? As in, buy when it's [low enough] and sell once it's [high enough
by zxcdw 13y ago
Doesn't this almost guarantee profit, as long as the average price doesn't come down too much? As in, buy when it's [low enough] and sell once it's [high enough]? Of course, if the market is filled with these algorithms it will get harder, but low-risk investments and trading over long periods of time should turn to notable profit, no?
Weird stuff, machine pushing the man out of business.
- kushti 13y agoIt would be pretty easy for man to beat such a simple algo.
- Retric 13y agoHow? Assume it's binary buy up to x bit-coin's at 835 and sell all of them at 875 does not leave a lot of room for manipulation.
- tedunangst 13y agoWhy bother with bitcoin? You can do the same with GOOG stock too.
- TrainedMonkey 13y agoBecause past trends do not predict future. You buy bitcoins at $835 and instead of going up to $875 they drop to $100.
- deleted 13y ago[deleted]
- PeterisP 13y agoEven if your assumptions of 'correct' price range would be 100% correct, there's an old saying "the markets can remain irrational for longer than you can remain solvent". If you buy bitcoins at 835, and the rational longterm price is above 835, then there is still a serious risk that the market price will remain much below 835 for an arbitrary amount of time.
- hft_throwaway 13y agodetermining "low enough" and "high enough" is what professional market-makers do all day. it's not easy.