New: HERTZ ABA Simulator & Calculators!
More HERTZ ABA updates!
HERTZ is an upcoming Algorithm Based Asset (ABA) which is an market pegged asset (MPA) with a formula which modifies the price feed to oscillate using a sin wave. Want to find out more?
I've investigated the previously voiced concerns regarding difference in timezones and time packages and have found that they were not issues to begin with!
Onwards to the next step, which is figuring out some sane value for the initial HERTZ ABA amplitude! It was initially proposed at 0.5 (50%) which is quite volatile! Perhaps a lower value like 0.15 (15%) would be appropriate? Try out the spreadsheet tool for yourself and please provide input on what you think would be sensible/possible.
Interested in the calculator? Check it out on github!
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HERTZ Simulator
This simulator includes:
- Automatically generated graphs showing:
- HERTZ USD value over time
- Your collateral ratio (given an initial collateral level). Highlighted red for close/below the MCR.
- HERTZ settlement value.
- Impact of changing BTS value on collateral ratios.
- Premade timestamps for different shorter profiles.
Short, Settle Debt, Buy, Settle Holdings calculator
This calculator is for estimating your profit shorting & holding the asset each month, assuming a constant BTS value.
Buy & Settle Holdings calculator
A simpler calculator for estimating profit from buying at the trough and selling at the peak.
The above calculators/simulator is in an alpha state and has yet to be thoroughly peer reviewed. The HERTZ variables are likely to change from the defaults set in the spreadsheet prior to launch of the ABA.
Any thoughts? Post them below!
Best regards,
@cm-steem
That is actually a great idea, to reduce the amplitude. Not only it will still be very much profitable for everyone using it for trading, it will also be useful as "quasi-stable" asset, where you can put all your money and not worry that you might lose half of it because you couldn't sell it on time. I know you've explained it already to me that there will always be opportunities to sell, both on top and the bottom, but, you know, I still worry :)
Yeah, I think that the initial HERTZ asset should have a less volatile amplitude than 50% (0.5). Once it's operational and proven to work then we can explore alternative variables with greater volatility.
If you buy the HERTZ token you won't be force liquidated, however if you find yourself in a position where you must liquidate your holdings you may find that you have to settle at a value lower than that you purchased the tokens at (unless you wait until later in the cycle).
Did I understand correctly that if i buy 10 bucks worth of hertz and bts drops significantly, when I press "settle" I still get 10$ worth of bts? Assuming I do it at the same hertz value of course
Assuming you bought $10 of HERTZ @ $1.50 @ $0.10/BTS = 60.67 BTS
Say BTS dropped to $0.01, and you were to settle at $1.50 (having waited a full cycle since you bought the HERTZ tokens), you'll get $10 worth of BTS but it'll be 606.67 BTS now.. so you'll have increased your BTS holdings.
If you shorted HERTZ @ $1.50, and BTS was to drop from $0.10 to $0.01 then your debt collateral would decrease (getting closer to being margin-called/force-settled) but it would be somewhat offset by the HERTZ feed value dropping to $0.50 (temporary debt destruction).
Awesome, thanks!
Thanks for sharing these tools @cm-steem!!!
My pleasure :)
Check out my content as well. suggest me some good issues i can write about @cm-steem
Hi Hassan, looks like you're new here. Please avoid off topic and self promotional comments like "Check out my content". There are accounts and bots here that moderate such comments and mark comments with a downvote which will reduce your reputation score (next to your username).
Thanks alot. I just needed some help.
Write about content that interests you, and keep at it.
thank for share
It was suggested recently that rather than 30.43 days as the period (days in year / 12) that we should use 28 days since this would be more in line with the working week, thoughts?
Would be easier and more linear when calculating the changes in your head. Like, I buy on Monday week one and know it will be back on Monday week five again.
Using 365/12 wouldn't even give you the same date each month.
Well there's two things we should consider:
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