Algorithmic trading and HFT have resulted in a dramatic change of the market microstructure, particularly in the way liquidity is provided. Algorithmic trading is a method of executing a large order using automated pre-programmed trading instructions accounting for variables such as time, price, and volume, to send small slices of the order out to the market over time. They were developed so that traders do not need to constantly watch a stock and repeatedly send those slices out manually.
Algorithmic trading is simply a way to minimize the cost, market impact, and risk in the execution of an order. Many fall into the category of high-frequency trading (HFT), which are characterized by high turnover and high order-to-trade ratios. HFT strategies utilize computers that make elaborate decisions to initiate orders based on information that is received electronically before human traders are capable of processing the information they observe.
Algorithmic trading is simply a way to minimize the cost, market impact, and risk in the execution of an order. Many fall into the category of high-frequency trading (HFT), which are characterized by high turnover and high order-to-trade ratios. HFT strategies utilize computers that make elaborate decisions to initiate orders based on information that is received electronically before human traders are capable of processing the information they observe.
PROBLEMS AND SOLUTIONS
The major problem to date is a failure of robust and consistent safety measures. OptiToken’s theory of prevention of such events is to split the actively traded portfolio into smaller groups based on different fail-safe measures and also different strategies. Furthermore, OptiToken seeks to create customized solutions by working with the exchange itself to implement backup fail-safe measures and controls.
In order to optimize profits, OptiToken has identified many market indicators that can be precursors to price corrections, upward or downward. In the beginning, the focus will be on hedging the downside, which can be accomplished by moving a portion of the portfolio into fiat if and when these indicators occur. The main indicator is a chart of the broader market that is achieved as an extreme parabolic move in a short time frame. When these conditions are met, a relatively small portion of the portfolio will be sold into fiat or, in the future, may be devoted toward other downside hedging instruments such as options contracts, futures or margin positions. OptiToken has also developed a variety of indicators and actions to identify potential downward and upward trends. In the event of downward trend indicators, a portion of the portfolio may be sold into fiat to wait out either the occurrence or non-occurrence of an event. In the scenario of non-occurrence, stop-orders may be used at that time to re-enter the previous position fully, beyond or to a partial extent.
TOKEN
Optitoken is an ethereum ERC20 that token derives its value from buy pressure created from trading profits among a selection of some of the most promising and actively developed cryptocurrencies on the market. The trading of the basket is based on a simple algorithm that is designed to buy low and sell high from coin to coin and uses the Euro as a fiat instrument for stability when no buy target is available at the time of a sell. The picks that Opti will focus on are tokens with strong communities, sufficient volume, strong marketing presence, strategic partnerships and especially active open-source development in their source code. Unique niche market coins that could be considered to have reasonable or undervalued market capitalization are also part of the strategy.
TRANSPARENCY
The OptiToken project aims to be completely transparent throughout all of its activities and endeavors. Audits will be conducted periodically both for transparency and compliance purposes. The tokens in the basket being traded will all be reported on fully with the most tax-efficient and allowable accounting basis, likely cash basis and LIFO if allowed. The token exchanged and used in each basket will be displayed after their every respective cycle. This is to protect the project's desirability and maintain an element of the secret that can only be appreciated by those who purchase OptiTokens, yet still provide sufficient transparency and learning opportunities for those who take interest in the project.
Roadmap
Team
- Sean Donato - Founder and CEO
- John DeGiacomi - Business Manager & Asset Pricing
- Sebastian Richard - Senior Software Engineer Full-Stack Developer
- Himank Varshney - Marketing and Analytics
Quik Links
Written By: putri_dewi
Bitcointalk profile: https://bitcointalk.org/index.php?action=profile;u=1132669;sa=summary
address of ethereum wallet: 0x4aD3D0C2A47FfA55547DBb36630A77912BC5Ff21
OPTITOKEN: AN ALGORITHMICALLY TRADED HYPER-DEFLATIONARY CRYPTOCURRENCY
Reviewed by Putri Gairah Crypto
on
Maret 01, 2018
Rating:
Reviewed by Putri Gairah Crypto
on
Maret 01, 2018
Rating:
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