Ideal coins.

[Tripfagging !.B9rst6/VM No.7648460]

Listen up /biz/nessmen! I have an idea.

If one could control the settlement feed of a smart asset, what would be an ideal shape for the curve?

I was thinking something cyclical has to be involved, so right off the bat a sin will be in the equation.

My first thought was "how would I do a 'proper' sine wave on a price chart?" What I mean by 'proper' is if the price was range-bound between two horizontals then the price of 1 would fall in-between the two and the boundaries would be reciprocals of each other. Also, I wanted to have the curve, say, double one's money at peak if bought 1, but halve one's money at trough if bought at 1.

After some tinkering, I came up with a curve which fit the bill (pictured).

I just wanted to make a thread to get some ideas as to how, for a hypothetical [say] BitShares smart coin (the kind you short into existence with BTS collateral), should the settlement price move to both generate trading interest and [time permitting] allow most to profit regardless of entry and direction?

(Originally inspired by finding out bitHERO is pegged to USD but at 5% appreciation rate, better than a bank!)

[Shamelessly !DefeCaTiNg No.7648485]

Bloody hell, my wretchedly trip doesn't work on 4cuck!

[Anonymous No.7648583]

>>7648485
u prolly want a second order ODE

[Shamelessly !DefeCaTiNg No.7648622]

This is kind-of what bitHERO looks like, at 5% appreciation per year if it started at $1 from 1913.

[Anonymous No.7648728]

>>7648460
You could link it up to etherdelta, and sell tokens when the price gets too high, and adjust your buyback rate to prop up the price when it starts falling.

Ideally, you'd be able to forcibly buy back tokens from owners if certain conditions (up to you) were met.

[Anonymous No.7648735]

>>7648622
yes a second order ode will allow a sin/cos variability

what u really want is a probability distribution around a central mean e^.05x growth rate

how do u know mathematica and no math r u retarded

[Shamelessly !DefeCaTiNg No.7648822]

There's a problem with a simple sine though (IMO): it could cause the market to position itself where there are few buyers above 1 and few sellers below. Another idea I had was to take the bitHERO idea above and merge it with a wave, and make it where from peak-to-trough one loses half and from trough to peak one gains double, while at the same time each peak and trough are touching exponential growth curves as envelopes. (x axis is days)

>>7648583
You got some, or at least link[s] to resources?

[Shamelessly !DefeCaTiNg No.7648863]

>>7648735
>how do u know mathematica and no math r u retarded
Does autism count?

[Shamelessly !DefeCaTiNg No.7649016]

>>7648822
But then I thought "well, other than for the short term, what brings the shorts to the yard so the longs can buy? how can a chart exist which allows shorts to also eventually profit too (assuming market price sticks close to settlement price)?"

So, I merge in my growth factor into the base of the base of the cyclical exponential and viola! A curve which starts off at double/half and widens indefinitely. Only downside is that a BSE is inevitable if the price actually follows peak to trough.

[Anonymous No.7649134]

>>7649016
1.05^x +(sinx +cosx).25

use this for a mean price

then apply some sort of normal model statistics to give ranges of variance

use that to time buys?

[Anonymous No.7649190]

>>7649134
realistically you're only gonna get shitty very baseline models

https://www.investopedia.com/terms/m/meanvariance-analysis.asp

try using this to model the deviation with time

[Shamelessly !DefeCaTiNg No.7650152]

>>7649134
Wait, as time goes on the peak to trough distance on your curve closes in % terms. To have a constant peak to trough % you need to wrap your sine in two exponential envelopes (my last image was an exponential growth top and exponential decay bottom)..