Reading this thread it appears there is still quite a bit of misunderstanding about what Bitcoin is, how and why it works, and why it's the most significant innovation in currency since we figured out how to stamp metal into a coin.
Mining seems to cause the most misunderstanding. If you think mining bitcoins is a way to get rich, you might as well open a grocery store - the profit margin is about the same. I made about $50K in one year from a $5K investment in mining equiptment, but that's only because the price rose. If I had simply purchased BTC instead, I'd be ahead right now instead of carrying a loss.
However, I didn't join Big Mike's to evangelize about why bitcoin is better than paper money. I intend to become a great trader. I think trading some of my money against the US. Dollar (as long as its price in bitcoin is so volatile) could be an effective way to grow my account.
Unfortunately, there is a real dearth of trading tools. I use NeuroShell, and the only connection currently available is an MT4 bridge to BTC-e, which does not provide volume data.
Sierra Charts has a handful of data feeds, but no integrated trading, and apparently no current plans to implement trading.
As an algorithmic trader (I insist my emotional state has nothing to do with the trades my system makes,) I need to trade from my software, not manually click buy/sell buttons.
Has anyone come across something I've missed? I'm trying to learn WebSockets and JSON so I can patch up a working Datapump and Tradepump into NeuroShell. I have great example code, but that doesn't mean I'm finding it easy. I would be ecstatic if someone could point me toward a professional data feed compatible with NeuroShell Trader that offers BTC symbols. (Futures trading at OKCoin would be awesome.)
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Sounds interesting. How would you handle money management with this kind of instrument? The first trading book I read was "Come Into My Trading Room" by Dr. Alexander Elder. He makes a strong case to never risk more than 2% of your trading account equity on any one trade. With a binary option you're risking the entire bet. That would make for rather small trades. I suppose they'd be useful to hedge a larger opposite risk. That's probably what they were designed for anyway.
Not too sure I could really trust that kind of exchange though - one that hides behind regulatory agencies instead of cultivating a genuine reputation for being trustworthy of their own accord. A publicly accessible and regularly updated cryptographic-audit is a requirement of any exchange I do business with.
Just a few posts up from here folks were discussing the immanent failure of Mt. Gox. As pathetically disappointing as that was, it directly lead to the advent of cryptographic proof of audit. These days you can find the daily audit link on the front web page of a good exchange. 796.com for example. Probably the most honest futures exchange I've ever encountered. Even the web layout style makes it clear that you're involved in a betting game if you're trading futures.
Mt Gox was ill-prepared to become a bitcoin exchange. It was originally a site to exchange cards of the card game "Magic the Gathering" cards (Magic The Gathering Online eXchange = mtgox) and they morphed into bitcoin exchanging but was in way over their heads.
I'm not sure what a "cryptograpic audit" is, an audit of their cryptography/security?