The Position Archive (and its newer incarnation, the Automated category) are there to allow me to publicly disclose my positions in an as-it-happens fashion. I use it as a semi-automated method of tracking my Bitcoin day trading. But how exactly is it run? Do you know I’m being honest when I report the profits and losses of my trades?
What is in the Archive?
- All the trades I make–the great and the horrible. The only exception is when I’m not actually taking a position, but am instead playing a wide spread. Those trades don’t get reported, both due to their frequency and smallness.
- I report what exchange I used and what kind of position it is/was.
- I report approximate average entry and exit points, as well as approximate times.
- I ensure that my approximations evaluate my success and failure fairly–I round up as much as I round down, and so on.
- Trades are added as the trade is executed, not when I decide on the order.
- Details are added as soon after entry and exit as possible. I utilize IFTTT to automatically post to my Twitter and as a post in the Automated category of my blog any time I open or close a position.
- If you want to be notified when I trade, subscribe to the blog, and then go edit your subscription in your profile to add the Automated category (off by default) to your subscriptions. You could also follow me on Twitter. Automated posts are off by default because they can get spammy.
What isn’t in the Archive?
- The total value of my holdings.
- My exact actions.
- Trades that haven’t happened yet.
- Things other than trades.
Why do I use this system?
I had three requirements when deciding how to run the Position Archive. It took me quite some time to find a system that let me do all three.
My requirements were that the system:
- Kept the value of my holdings and other private information sufficiently obscured. If you really wanted to know, you could probably figure it out by combing through order book data–but I want it to take you some time, as I appreciate my privacy. I distribute my buys and sells through a range and use odd numbers in order to hide my actions. I also report approximations instead of precise numbers, in order to further marginally obfuscate me. I intend to find a reputable community member of some kind who would be willing to sign an NDA. Once I do, I plan to verify my initial investment and current valuation to them, proving the veracity of my Archive up to that date. It might become a recurring, quarterly pseudo-audit. If you’d be interested in helping with this, fill out my Contact form.
- Maintained a high degree of transparency. I want my readers to be confident I’m not fudging the numbers in the Archive, pretending I sold or bought at a point I didn’t, or otherwise greatly distorting my trading record. I believe utilizing IFTTT to automatically update you shortly after any trade is executed is a good solution. It guarantees I will be reporting a trade that could have occurred within a very limited time frame. I hope you find this an acceptable level of transparency. If you don’t, please let me know. Again, Contact form. I sincerely appreciate constructive criticism, especially if it is in regard to improving transparency.
- Provided timely reporting of my trades, ensuring that readers who were following along very closely should be able to approximate my results. This third criterion is in the worst state, unfortunately. IFTTT checks the trigger every 15 minutes, approximately. Bitfinex sends an e-mail sometimes immediately, sometimes up to 15 minutes late. This means a maximum possible delay of ~30 minutes before you see my trade. It will usually occur about 5-10 minutes after. If anyone has any suggestions for improving this, let me know -> Contact.