Steem Stabilization Project[part 8]
100% of the SBD this post raises will be sent to poloniex to stabilize the price off STEEM.
This is a project Co-Started by @cryptohustlin
What do we propose?
You simply upvote this post. We have a market making(a trading strategy) bot built out for STEEM on poloniex and by adding your donations in the form of upvotes to the bot, we could potentially stabilize steem quite a bit.
So what is market making?
Market making is when someone who places bids(wanting to buy) and asks(wanting to sell) on a product in an attempt to make profit. A by product of this activity is decreased volatility in the market(more stable prices).
http://www.investopedia.com/video/play/role-market-maker/
Yesterdays trade volume Update: 1400 STEEM(had the spread set a bit to wide)
It doesn’t take a lot!
This project was kicked off by 120$ worth of steem / bitcoin donated by @cryptohustlin, Since market making constantly is buying and selling, the amount of volume you can do with very minimal amounts of money, make this strategy for stabilizing steem great!
Our Code.
https://github.com/cmtzco/steem_mm
We have decided to share our code with everyone so anyone who wanted to play around with it or use it was able to. Keep in mind this bot does trade with and can loose REAL MONEY. We are not responsible for any bugs in the code, how you choose to use this software or anything that could arise form running this software. The current code will trade with your entire BTC and STEEM balances on poloniex and bittrex.
Great project, hopefully you can pull it off:)
Make sure you follow me, Theres much more coming. In our next post we will be trading on bittrex and poloniex. We are currently working on a website for better transparency (shows current balances and ammounts on open orders)
I'm really mad about the situation with Poloniex right now considering we can't deposit or withdraw Steem or Steem Dollars. There is a huge spread between Steem dollars on Bittrex and on Poloniex. If I could just deposit Steem Dollars on Poloniex somehow I could make mad cash exploiting the difference between the pricing on the two platforms.
Cool idea and great to share the code - you have my upvote!
Does the bot turn a small profit, or it's just for the good of the steem market?
The bot generally turns a profit on stable days in the market, but on days when the price of steem drops.... but bots funds drop as well.... as it buys all in on these situations.
This one gets a 100% vote from @venuspcs, a rare treat in the post HF19 days. Keep up the good work @cryptohustlin.
Great post I gave you a follow!