The Litepresence Report on Cryptocurrency

[presence]

The American Internal Revenue Service (IRS) has issued an FAQ sheet to provide guidance on how US taxpayers should report their transactions in Bitcoin, in accordance with the government's recent decision to treat the cryptocurrency as property instead of money.

As could probably be expected, what the US government expects for its Bitcoin-using taxpayers to remain strictly legal is an absolute bookkeeping nightmare.


Here's a breakdown of the information provided in the report, creatively and memorably titled Notice 2014-21:


Bitcoin transactions will be taxed as property transactions.


In the eyes of the US government, Bitcoin is property, so trades in “virtual currencies” like Bitcoin will have “immediate tax consequences” that wouldn't apply if it was considered a currency.


To report Bitcoin transactions, you have to convert the BTC value of each transaction to US dollars according to the exchange rate on that date.

I'll keep that in mind when I'm pumping alt coins with hundreds of micro 1000ths of a penny buy bids...




http://cointelegraph.com/news/111487/us_rules_on_recording_bitcoin_transactions_are_a_nightmare

“Taxpayers who fail to report their income from virtual currency may potentially be subject to tax penalties,” the notice warns.


Past transactions, back before Bitcoin was A Thing, count too. Taxpayers who treated Bitcoin trades in a way inconsistent with Notice2014-21 even before it was issued will not receive penalty relief if they fail to report and pay taxes on their past transactions.


“This will require many businesses and individuals to go back and determine the existence of gain or loss on transactions that occurred in the past, perhaps several years in the past,” the notice says.

lulzy

In reality, the IRS will have a hell of a time tracking Bitcoin transactions down to this level of detail.

 

[PaulConventionWV]

Awesome news. It's go time!

 

[muh_roads]

Litecoin has hit 51% on one of the pools. Luckily the pool has no ill will intentions...I don't think.

 

[presence]

Litecoin has hit 51% on one of the pools. Luckily the pool has no ill will intentions...I don't think.

Apparently the market is taking this more seriously...

 

[PaulConventionWV]

Apparently the market is taking this more seriously...

Yeah, I don't think the market is willing to assume "no ill will intentions". A weakness is a weakness. LTC miners had better figure that out quick before LTC becomes obsolete.

 

[muh_roads]

LTC/USD seems fine.

The LTC/BTC ratio is dropping because BTC/USD is going up much faster.

 

[PaulConventionWV]

LTC/USD seems fine.

The LTC/BTC ratio is dropping because BTC/USD is going up much faster.

Traditionally, this is the opposite of what happens. I think it signals the caution that the market is taking with LTC because of this news. They're not going to let it slide until the situation is corrected.

 

[PaulConventionWV]

Bought 12 BTC at ~457. Waiting for it to arrive in my Coinbase account. Looking really good so far.

Also of note is that Stamp is leading the way. Could this be a departure from the Chinese-dominated market of 2013 and early '14?

 

[amonasro]

Market order spank bot is keeping me long as it should, no trades yet.

Can I get an AMEN for breaking upward?

edit: spoke too soon. Sold @ 10.57 & 10.53 a few hours ago.

 

[presence]

15m Charts are bad for you... Mkay?

re:

"Today's price drop is awfully scary"

 

[zeMan]

First Spank trade!


2014-05-20 14:25 Trades: 0 Day: 0.50 Freq: -- Price: 10.57
2014-05-20 14:25 1693 Currency: $0/2510 48% ROI
2014-05-20 14:25 164 Assets: 237/237 45% ROI 100% Held
2014-05-20 14:25 SELL 5 - Trade Number: 1
2014-05-20 14:25 Selling...
2014-05-20 14:25 Market Order Sell Instrument
2014-05-20 14:25 SELL order #240713667 amount: 237.35 LTC at 10.64
2014-05-20 14:25 Order #240713667 canceled as it was inactive for 30 seconds.
2014-05-20 14:25 Creating new order..
2014-05-20 14:25 SELL order #240714278 amount: 164.2 LTC at 10.61
2014-05-20 14:26 SELL order #240714278 traded. Balance: 0 LTC 2516.12 USD
2014-05-20 14:26 Market Order Sell Instrument
2014-05-20 14:26 SELL order wasn't created because the amount is less than minimum order amount

 

[muh_roads]

no spanking here. Probably cause I fucked with the bot by buying BTC while it was still running. I still left some in there to see if it would grab any LTC. Nope.

edit: Are we supposed to start the bot with LTC already purchased?

 

[presence]

no spanking here. Probably cause I fucked with the bot by buying BTC while it was still running. I still left some in there to see if it would grab any LTC. Nope.

edit: Are we supposed to start the bot with LTC already purchased?

When I start crypto trader bots...

1) I put my money on the books... whether I'm holding LTC or USD... I put it up for sale at some price that won't be filled. The bot can't touch money on the books manually.

2) I start the bot.

3) I run a recent backtest from of the last 60 days and 30 days into the future.

4) I position myself as the backtest suggests... and put my money back on the books manually out of the bot's reach.

5) I run and re-run the backtest several times over the next few days and trade manually when and if the backtest does.

6) I find that my CT scripts run 99% accuracy to backtest after they've been live for about 5 days; massively volatile swings could take longer to correlate.

Unfortunately there is no way to "preload" data to a live script at cryptotrader. I've discussed this with several other botsmiths and at present... we can't manage to hack around the sandbox. So yes... upon initialization... weird things can happen. Bad trades can occur... this can happen with anyone's scripts at CT. You can mitigate by initializing on a small sum and adding bank later.



zeMan regarding your initialization... the bot sold under condition 5. I then begins a 48 hour countdown until it will buy again; per backtest... the bot WANTED to sell on May 11th per sell condition 3 which has no delay. So I'd keep an eye on the backtest March 20 to June 20th 2014 and do as it does for the first few days manually.

 

[nayjevin]

Yeah, Tradewave allows full python implementation, what I referred to earlier, that Cryptotrader is crippled. In python, as any programmer can imagine, it's pretty simple to set a counter to each tick and wait for enough ticks to pass to have enough data to make an informed trade. Can't sell strategies on Tradewave though. Seems like a pretty impressive operation, but still requires full trust in an individual in a very new and unregulated(?) market. I have a good impression of Tradewave, but questioning my impressions lately

 

[muh_roads]

I hear all the cool kids use python and connect it up to the exchange on their own. But if tradewave is good and it uses python, then that should feel about the same unless the limited gayness exists there as it does ct.

pres. Do u mostly run your bot simulated? Does it run better without bid logic so the 4kb available is better spent on more indicators?

I'm wondering if the best thing to do is just run it simulated and manually copy the trades it makes?

I would personally love it to handle trading for me without me having to think about it but that sounds like a fantasy, especially with how shitty Alex is at ct.

I kinda like the idea of trading it manually and doing what it says simulated.

 

[presence]

I hear all the cool kids use python and connect it up to the exchange on their own. But if tradewave is good and it uses python, then that should feel about the same unless the limited gayness exists there as it does ct.

pres. Do u mostly run your bot simulated? Does it run better without bid logic so the 4kb available is better spent on more indicators?

I'm wondering if the best thing to do is just run it simulated and manually copy the trades it makes?

I would personally love it to handle trading for me without me having to think about it but that sounds like a fantasy, especially with how shitty Alex is at ct.

I kinda like the idea of trading it manually and doing what it says simulated.

I generally feel safe sleeping in my ct bots that have been initialized for a few days, especially now that I have iceberg orders working.


Currently... I lost my desktop PC... it was my 2fa device for BTCe... so I'm in ticket mode at btce and have no access to "litepresence" or "litepresence2" ... so no live scripts for me atm.

My funds however, are luckily mostly at Mintpal... and I'm trading small cap alt coins.


Certainly no shame it using a CT bot or any bot for that matter as a "investment advisor" rather than automated trader. I run 5 simulations at all times of other scripts.... whenever my live trader trades I always go back and see what my "alternate" simulations were doing. I usually err on the side of trusting my preferred live script to do its thing.

Atm... I'm wishing I could just plunk my funds back in BTCe account and let ICY SPANK handle it... I might just make a litepresence3 account to move that forward faster

LP

 

[presence]

So... on the subject of a new computer... my budget is 2 BTC, here's what I'm looking at:



GIGABYTE GA-F2A88XM-D3H Motherboard 79.99 free shipping
Samsung SSD 250 SataIII 139.99 free shipping
AMD A10-7850K APU 169.99 free shipping
Kingston HyperX FURY 16GB (2x8) 1600DDR3 139.99 free shipping

complimented with:

ASUS DRW-24B1ST DVD 22.69 free shipping
Antec EA-550 Platinum 550 Power Supply 89.99 free shipping
Silverstone Tek Micro-ATX PS07B 79.99 free shipping
Noctua NH-U14S CPU cooler 68.49 free shipping

+/- $800


I have 2 19" samsung monitors. I'm also looking to pick up a $230 Acer 27" monitor for a 3 monitor system which the FM2+ motherboard should run without additional graphics cards.



This would be an upgrade from my now cooked:

Pentium 2.4 Core Duo
2 GB Ram
WB Green 250 MB
w/ single 19" monitor

...which was barely adequate for what I do.

I'm currently on a acer laptop:

P Socket 1.8 GHz Core 2 Duo
100MB SATA
1G DDR3 PC3-5800 (2x512)

Which is simply inadequate to build or run bots; I can't have more than 2 live wisdom charts going; one if I want to do ANYTHING else. I also have 90 gig of the 100 full. 14" screen? can suck it.

I've never purchased a computer before... I have four machines that are all in the sub 2 GHz and 1 gig of ram category... they're all "curb scores" that I've reformatted and installed lubuntu (LXDE ubuntu) on. Lubuntu is a super fast low requirement operating system. I love lubuntu... but I'm desperately in need of a new machine. Call me crazy... but I'll probably still run lubuntu on my 7850 APU w/ 16 gigs of ram

http://lubuntu.net/

Any thoughts on my shopping list would be appreciated.

Goals

4-6 live Bitcoinwisdom Charts
Photoshop images up to 1600x3200
Multiple cryptotrader.org bots
Zero interest in gaming or mining with this machine
moderate/occasional "HTPC" usage

 

[PaulConventionWV]

So... on the subject of a new computer... my budget is 2 BTC, here's what I'm looking at:



GIGABYTE GA-F2A88XM-D3H Motherboard 79.99 free shipping
Samsung SSD 250 SataIII 139.99 free shipping
AMD A10-7850K APU 169.99 free shipping
Kingston HyperX FURY 16GB (2x8) 1600DDR3 139.99 free shipping

complimented with:

ASUS DRW-24B1ST DVD 22.69 free shipping
Antec EA-550 Platinum 550 Power Supply 89.99 free shipping
Silverstone Tek Micro-ATX PS07B 79.99 free shipping
Noctua NH-U14S CPU cooler 68.49 free shipping

+/- $800


I have 2 19" samsung monitors. I'm also looking to pick up a $230 Acer 27" monitor for a 3 monitor system which the FM2+ motherboard should run without additional graphics cards.



This would be an upgrade from my now cooked:

Pentium 2.4 Core Duo
2 GB Ram
WB Green 250 MB
w/ single 19" monitor

...which was barely adequate for what I do.

I'm currently on a acer laptop:

P Socket 1.8 GHz Core 2 Duo
100MB SATA
1G DDR3 PC3-5800 (2x512)

Which is simply inadequate to build or run bots; I can't have more than 2 live wisdom charts going; one if I want to do ANYTHING else. I also have 90 gig of the 100 full. 14" screen? can suck it.

I've never purchased a computer before... I have four machines that are all in the sub 2 GHz and 1 gig of ram category... they're all "curb scores" that I've reformatted and installed lubuntu (LXDE ubuntu) on. Lubuntu is a super fast low requirement operating system. I love lubuntu... but I'm desperately in need of a new machine. Call me crazy... but I'll probably still run lubuntu on my 7850 APU w/ 16 gigs of ram

http://lubuntu.net/

Any thoughts on my shopping list would be appreciated.

Goals

4-6 live Bitcoinwisdom Charts
Photoshop images up to 1600x3200
Multiple cryptotrader.org bots
Zero interest in gaming or mining with this machine
moderate/occasional "HTPC" usage

I'm on an Acer laptop, too. It's the first computer I've ever had and still doing just fine. It's probably not adequate for what you do, but it's a pretty reliable machine.

 

[amonasro]

Pres, I have you covered. PM sent.

 

[muh_roads]

When I start crypto trader bots...

1) I put my money on the books... whether I'm holding LTC or USD... I put it up for sale at some price that won't be filled. The bot can't touch money on the books manually.

2) I start the bot.

3) I run a recent backtest from of the last 60 days and 30 days into the future.

4) I position myself as the backtest suggests... and put my money back on the books manually out of the bot's reach.

5) I run and re-run the backtest several times over the next few days and trade manually when and if the backtest does.

6) I find that my CT scripts run 99% accuracy to backtest after they've been live for about 5 days; massively volatile swings could take longer to correlate.

Unfortunately there is no way to "preload" data to a live script at cryptotrader. I've discussed this with several other botsmiths and at present... we can't manage to hack around the sandbox. So yes... upon initialization... weird things can happen. Bad trades can occur... this can happen with anyone's scripts at CT. You can mitigate by initializing on a small sum and adding bank later.

I've read and re-read this post. Sorry, I still don't understand what you're saying. Backtest into the future? Position yourself based on a backtest? Like, chart overlapping to assume where we are at?

So essentially the bots shouldn't be used to trade live until they have been running for 5 days with the funds locked...?

Is it okay to trade manually other markets while this is running? Did buying BTC while icy spank was focused on LTC live screw with anything?

Are you pointing icy at BTC, NMC, PPC?