Fun with bots -- Let's make a massive sell wall at $20K!

Hey hodlers! Let's have some fun with the trading bots.

First let me explain something that you may not know if you're not a traditional "investor"

When third parties hold your -- let's say -- stocks for you, did you know that they can trade them and write contracts on them as long as you don't put them "on order?" One old trick is to place your shares on order, meaning, set a limit order at a price much higher than the current price. This prevents your broker from lending your shares to short sellers (and actually forces short sellers who may have already borrowed your shares to close at the current price). This article explains more about the concept

I did something fun today -- instead of sending all of my latest purchase to cold storage, I placed half of it on order for sale at $20K. I'm sure today's nice little rise had nothing to do with my little order, but it got me thinking...

What if 10,000 people placed a tiny limit order of, say .02 BTC at $20,000? The bots would see these orders. It would really "mess with their heads" because the order book plays a role in most trading algorithms.

I DO NOT SUGGEST ACTUALLY SELLING AT $20K because next time we go there, we will overshoot it by a mile. What I am suggesting is that we each pile on a little dust in limit orders at that level just to fuck with the bots.

This post will undoubtedly be downvoted heavily. Please upvote and share if you think this is an interesting idea.

Submitted December 16, 2018 at 07:30AM by diydude2 https://ift.tt/2QXLn2G