OK... did this in a separate thread for simplicity sake... it's pretty dead so this might be a double post. Sorry for that.
As someone who doesn't have a ton of free time, and is often sleeping when the market is most active - I do a lot of my trading while asleep. This is one technique I use - but it's only good for stable, but volatile markets (like BC is currently). A couple of caveats - to be done right you should have enough capital on each side of the trade-pair to run 3 leading/trailing trades of cascading values... which I didn't have because I'm not allocating that much to an unproven coin (which BC definitely is right now). It's also only viable if you are fine with getting 'stuck' on one side if the market moves dramatically in a single direction - but, on the other hand, will automatically mitigate some of the risks found in timed trades at market prices.
The idea is basically to trade on both sides of the market. So if the price is currently 100, you would (optimally) want to place a buy for 1000 at 75, another 1500 at 60, and another 2000 at 45. You would then also place sell orders at similar points for similar amounts - so sell 1000 at 125, 1500 at 140, and 2000 at 155. If the ticker is volatile enough you should hit several of these points... if the market moves in a single direction - obviously your profits will be unrealized, but you will have 'caught a falling knife' as accumulating a falling property is often called (and why you should only trade like this if you actually believe the thing you're buying has at least some value
). Or if the market takes off upward, you'll have locked in profits on the way up, and be in a better position to buy back in on a later drop. In a perfect world you'll see this
when you wake up the next day:
(Note that I was playing with almost no coins on either side of the trades - for reasons stated above. Also important to note that I deliberately reduced my sell orders so that I would wind up with BC left over - at a cheaper price - as I wanted to accumulate BC more for long term holding).
What this basically resulted in was buys of 17,500BC for an average price of 504. And sales of 10,000BC at an average price of 727.
This move netted me 7500BC at a cost of only 205 satoshi... a price more than 50% lower than the lowest price of the day - and I believe lower than the price has ever fallen. At current prices (~660 satoshi.. so just over .05BTC worth) it represents a 200% gain on the profits - although unrealized as I'm holding for the near term.
No system is perfect, and I definitely wouldn't want to have 20-30BTC worth of trades set up this way while I was sleeping and unaware of recent news or shifts in market sentiment... but for a small amount like this it's quite decent. There are holes, of course, but if the market moves dramatically... you won't miss out completely. On the other hand if the market stalls, you won't have wasted your time trying to cover commissions on trades with no movement. But if the swings are big enough... you wake up to free money on both sides! Edited by DiGiCiDAL - 3/6/14 at 5:42am