Bitcoin Algo Trading and Market Making Seminar

BitMEX CEO, Arthur Hayes, will lead an interactive seminar on the basics of algo trading and market making in the Bitcoin markets.

Arthur will touch on API connectivity through the use of an example python trading bot. He will also talk about the basic principles of market making Bitcoin spot and derivatives.

Participants should bring a laptop, and visit this GitHub repository for the example trading bot.

Date: Wednesday 22 March 2017

Time: 7pm to 9pm

Location: The Hive, 23 Luard Rd, 21/F The Phoenix, Wanchai, Hong Kong

Cost: Free

Please RSVP on Eventbrite.

China Bitcoin Premium Points To Moon

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During the November 2013 Bitcoin bubble, the belief was that Chinese people would rush to convert their RMB into Bitcoin to escape the financial repression they faced at home. That did not come to pass as it was still very easy and cheap to spirit capital out of China. That all changed this summer when the PBOC shocked the world by devaluing the CNY by 4% over one week.

The PBOC did not stop there. The Chinese government is aggressively trying to stem the capital flight out of China. Many real estate commentators have lamented how Chinese buyers have slowed down the pace of property purchases because of the increasing difficulty they face exporting their RMB.

In my article Hello Bitcoin: China Begins Enforcing Capital Controls, I speculated on the potential impact on the Bitcoin price if for the purposes of real estate Chinese buyers began using Bitcoin to export their wealth.

The first signs of a possible shift of wealth from China outwards through Bitcoin will be the premium of BTCCNY to BTCUSD. The above chart shows the 24 hour moving average of the premium between Bitstamp (BTCUSD) and OKCoin (BTCCNY) over the past 30 days. While the absolute premium at the present moment is not large, the trend is up and to the right. I plotted the premium against the price of Bitcoin. The two exhibit no correlation over this 30 day time period; however, I predict that if premium continues to rises, it will lay the groundwork for a moon shot.

In the 3% to 5% premium range, it becomes worthwhile to buy offshore, sell onshore in China, and remit money between China and Hong Kong. The difficult step is bringing CNY from China into Hong Kong. If you cross the border between the two territories the legal limit is 20,000 CNY (3,000 USD). At a 5% premium that is a 150 USD gross profit before exchange fees and bank wire fees. That isn’t compelling. This trade needs to be done in a size >$10,000 on a daily basis and electronically. Previously there certain individuals who would take CNY onshore in China and remit you HKD or USD offshore into Hong Kong in any size.

If truly the traditional avenues of moving money between China and Hong Kong have been shut, then the premium will rise above 5%. That presents a clear signal that there is an imbalance of demand to sell CNY and buy Bitcoin. That is when the rocket ship will ignite.

Crypto Trader Daily – 25 March 2015

Price Action

Intraday price volatility spiked as the the price crashed to $235 on Bitfinex. Minutes later a violent short squeeze sent the price back to $250. The downtrend is still in effect, but the violent squeezes are a warning for shorts not to get too greedy. Expect a retest of the $235 lows and ultimately $230.

 

Trade Idea

Sell XBUH15 above $245 with a downside target price of $235. Cover the position if the price trades above $255.

 

In the News

Hong Kong to leave Bitcoin unregulated (CoinTelegraph)

Neteller adds Bitcoin deposit option (CoinDesk)

BitMEX CEO Gives Bitcoin 101 Talk to Rotary Club of Hong Kong

The talk focused on the basics of what Bitcoin is, what problems it solves, and what BitMEX offers. Although many of the attendees knew very little about Bitcoin before the talk, they asked very probing and intelligent questions.

On June 10, 2014, BitMEX CEO Arthur Hayes gave a talk on Bitcoin 101 to the Rotary Club of Hong Kong.  The event was well attended by club members who are very prominent in the Hong Kong business world.

The talk focused on the basics of what Bitcoin is, what problems it solves, and what BitMEX offers. Although many of the attendees knew very little about Bitcoin before the talk, they asked very probing and intelligent questions.

10June2014_Club Meeting_Guest Speaker_Arthur Hayes (2)
BitMEX CEO Arthur Hayes accepts a gift from Terrill L. Frantz the acting president of the Rotary Club of Hong Kong.

CEO Arthur Hayes To Speak On Bitcoin Derivatives At Inside Bitcoins Hong Kong

BitMEX CEO Arthur Hayes will be speaking on the 25th of June from 3:00 PM to 3:45 PM on Bitcoin derivatives and the current market structure.

BitMEX CEO Arthur Hayes will be speaking on the 25th of June from 3:00 PM to 3:45 PM on Bitcoin derivatives and the current market structure.

Bitcoin Derivatives: What Are They? And Why We Need Them

While trading volumes on spot exchanges have risen dramatically since early 2013, the derivative market remains nascent and grossly underdeveloped. Many high profile figures in the Bitcoin community have been calling for a liquid derivatives market. This panel will examine what is meant by a Bitcoin derivative, the different uses of derivatives by different market participants, and the benefits to having a liquid and robust market. We will examine the current landscape of derivatives products and help attendees grasp the different uses and risks with trading different types of derivatives. We will also look to the established market of fiat currency derivatives to gauge what sort of market growth is needed to develop a healthy ecosystem.

Inside Bitcoins Hong Kong