Bull traps are for trapping bulls.
[*] My secret weapon: http://www.lolipop.ch/de/65064559-sm...hoC2M0QAvD_BwE
I have several questions related to the topic and I hope I can get some clarity from the more experienced ones:
1. How does this activity comply with Swiss taxes? If you have deposits in crypto currencies or even gaining out of these transactions do you mention them in the tax forms? If not mentioning them, is it against the law?
2. As a citizen of an EU country but living and working in Switzerland which details you have provided when registering on coinbase.com, the ones from your country or the Swiss ones?
Many thanks!
2. Register as a Swiss resident.
But mostly non-strategic, just out of gut feeling.
(what are you using for algo-trading?)
-The actual value of the cryptocurrency you are holding is subject to wealth tax. Which means say, you have equivalent of 10K in BTC, then you're supposed to declare that as part of your wealth. Interestingly, I'm not sure which value should be taken as it can fluctuate so greatly that it can change a lot. My gut feeling is that the conversion reference date must be 31st december 2017 (for tax year 2017)...
Note: too bad if you have losses, they can not be put into the declaration.
-The capital gains from movable private assets, which should be tax exempt in Switzerland.
* as opposed to a professional trader.
2. I provided Swiss documents, I feel it's better from numerous aspects, and anyway it's my official residence.
PS: of course, as others suggested, it might be best you consolidate the above. I'm not a professional tax adviser (otherwise I would charge you thousands for my good advice ). I merely consulted a few sources to write the above.
I even had set a "Stop" in Gdax, but it failed to execute (I am unsure of what happened to this date). I cancelled it few hours after, anyway it was already too late.
So I can update the "tips" with use "tools" to protect from emotions.
Somehow I did not panic and I did not sold anything as I have a plan. It does not means the plan will work, but at least I am consistent with my intentions.
Anyway, it recovered rather well so far (as I expected). Unfortunately, it seems that governments are introducing lot of uncertainty into the market. As a result, it's somehow strongly influenced in a way which penalised the one who invested and trying to support revolutionary technologies. All because they claim to "protect the citizens from risks and high fluctuations". So they are penalising those who take risks and initiative to protect a bunch of brainless twats who allegedly take too much risks (to a point where governments feel they have to do something). Typical abusers.
I did research that and I came to the same "theorical conclusion".
It was more or less like this:
I bought at 197 euros, 10 "units" (LTC). Days later, during a period of high fluctuation, it went above 257 euros. Say 30minutes before it was 240 euros.
So I set a sell "stop" at 255 euros.
Say 10 minutes later it was still higher, around 257 euros.
Approx 1 hour later, the price was less than the stop, around 252 euros.
My stop was not executed, it was still in the "pending orders" or something saying it's not "filled".
Hours later I cancelled it since it was never higher than 255 euros anyway.
Now I am wondering how it works in that context.
Because I only see a stop and market price. If, for example, there's only 1 buyer and 50 sellers (and the amount of buys order is less than the sell orders), I do understand why the "stop order" is not filled.
But then it means a stop is somehow "limited"!!? What if, for example, nobody buys for a period of 1 hour, then the stop is useless!
I'm really beginner, I feel there's a gap in logic or the tool is not very clear.
It's a self-written witch's brew consisting of a hierachical set of LSTM NNs embedded in a framework of the excellent work of the good Reverend Bayes, some ideas from quantum physics and string theory (quantum theory is, of course, just a generalization of probability theory) and a 'sentiment scraper'.
Which makes me wonder how professionals are doing to "secure" their actions...
Unless maybe in a less fluctuating scenario like normal shares, this situation of no buyer/ lot of sellers is rather rare?
Stop loss & bids often never execute, some stop losses are sell at best below a no, however you set a limit of say 99 & it executes at 60 if thats where the bid now is.
Professionals rely on automation at their end rather than at the exchanges and will probably have reduced their position (or increased if it's a short) based on the change or rate of change (first/second derivative) of the price rather than a fixed price point. They will also accept losses within their risk profile because this is a game of consistently hitting 51% rather than a win every time.
As you can see Im only playing at it, having a bit of fun. From what I read, LTC could hit up to 1000 later this year. I am now addicted to watching my altcoins price!
I still have my coins on my Coinbase wallet, is that safe or should I keep them on a hard wallet?
Coinbase is, in my opinion, the most reputable company in the cryptocoin space (I'm damning them with faint praise here...); so for your modest balance, it's fine to keep it with them for now.
What I would advise is that you upgrade your account to a GDAX one (usually requires another dance with a photo of some kind of ID). The fees are much, much lower and are actually free if you do a maker trade (i.e. put an offer in the order book and wait for someone to fill it).
I am not interested in applying it (EFCH promise ), rather learning about the method (as I come from a CS/AI background).
It's not only about safety but also availability .
Since your coins are on Coinbase, you are 100% relying on Coinbase to access them. Which means you depend on their authentication servers as well as their other servers which deliver the service.
Now, I had my experience to illustrate the issue. A while ago, it was rather less volatile and ETH hit the peak of around USD. I bought at around 200 USD. Coinbase suffered successive outages, including some on the authentication, and everything was unavailable for at least 20 hours.
During that time, some kind of panic went on and the value dropped a lot in few hours. I tried to sell but Coinbase was out. Emailed them to sell, no answers (in months). When I managed to connect at last, after these hours, I sold at around 220USD, as I feared Coinbase was doing a "Mt Gox".
If I had the coins on a private wallet, I could have send them to another exchange and sell them when I wanted, at a much higher price. That is Availability .
For now, if you have limited amount of coins, it's probably OK to leave on Coinbase, but you are dependant on their platform. That's the catch.
PS: If you want to read the history of outages or problems they have, it's here: https://status.coinbase.com/history
Curiously, I don't see the occurrences where their authentication servers was down (users unable to login).
You might want to consider some of the problems in training an NN on historical trade data. E.g. take some n-period slices of the data and predict the price m periods in the future. This approach usually yields quite chaotic results even if the market is doing steady-state psychological breathing. Once a pump group injects a high-frequency component into that, it gets even worse. (The sentiment scraper (which works exactly as it sounds - we're scraping news items, forums and chat rooms (Oh, how I miss the Poloniex trollbox...) and doing NLP on it) helps here).
One way to ameliorate this is to try and find some scale-invariance in the data, i.e. take overlapping time slices at different scales. We have another method which can detect chaotic outcomes even better, but that's definitely 'secret sauce'. (You'll find it somewhere in the annuls of 19th-century mathematics).
There you go. That's pretty much all you need for an MVP...