Everule's blog

By Everule, history, 18 months ago, In English

Hello Competitors!

I'm looking to build a simulated exchange with intrinsic value based on codeforces rating, taking inspirations from the problems and solutions from real-world exchanges.

If you're interested in financial markets and you want to gain a better understanding of the kind of work they do there, this is an easy project to work on to get a ground-up understanding of markets and trading.

You're not required to have any previous financial background. You need to have an interest in learning and enjoy finding and critiquing different solutions to interesting mathematical problems. I recommend applying irrespective of your experience level, I believe there is a lot to learn in the development of a trading system.

I'm looking for 10-15 people to fill 3 types of roles(closed).

Stock Exchange Developer

You will develop the back end orderbooks to keep track of all orders and fill them as fast and efficiently as possible. You will learn about the actual implementation of how shorting, options and margins work. You will have to keep track of collateral, market liquidity and slippage, and instrument volatility to make informed decisions about margin calls and open option positions and automatically close those speculative positions.

Algorithm developer and liquidity provider

You will help create liquidity in the market, allowing trades from users to close almost instantaneously. You will be split into two hedge funds, and you will have to come up with strategies to invest your own and other's money. These strategies include risk neutralization, arbitrage, and correlation analysis, and try to remain market-neutral at any time.

Front end developer

You will develop a front end that displays stock prices over a timeframe, allow users to make trades, look at the orderbook and the positions of other professional traders.

The role has no fixed hours, you can work at any time you would like to, and if you feel you would like to work after a month or two, you can still apply.

Your compensation will be between 200-2000 usd based on your contribution and experience level, paid in Toncoin.

Send an email with your resume to [email protected] or join the discord server to apply https://discord.gg/8wMhRchDNX

How the system works

This is a tentative description, subject to change based on the results of our exchange and algorithms team.

Every account with more than 10 contests is allowed to make trades for any securities.

Every account with more than 10 contests will have their shares available on the public market. Those with 20 or more contests can be shorted. Those with 30 or more contests will have derivative instruments such as options and futures.

Every share will provide a dividend based on f(rating, perf, competed?, contest_type) after every contest. We will test different possibilities of $$$f$$$ before finalizing it.

You will start out with money as a function of how many contests you've done and how high your rating is. To prevent inflation and permanent stock holding, we will slightly dilute everyone's holding after every contest and redistribute them, and change interest rates.

You will not be trading the securities with real money. However we will give awards to the best performing traders in the low, medium and high capital strategies.

We will use SEC like analysis to analyze pump and dump, insider trading and betting on alts. We will use the strongest statistical methods available to find those who cheat here.

Edit. Thank you all for applying. We've taken in 15 paid employees. However you may still want to consider applying as an unpaid intern.

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18 months ago, # |
  Vote: I like it +11 Vote: I do not like it

Interesting ...

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18 months ago, # |
  Vote: I like it +16 Vote: I do not like it

Since you're using real money to pay people, do you plan for real people to trade with real money? How would that work if I can short myself?

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    18 months ago, # ^ |
      Vote: I like it 0 Vote: I do not like it

    Well, we're considering a few solutions. One of them is preventing someone from taking a short position, buy put options, or sell call options on themselves.

    The real money payment is in my personal opinion insignificant compared to how much cp has improved my career, so I don't think that will be a major problem. Otherwise we will implement the ban.

    However I agree there are lot of ways to take advantage of the system, thats why we've hired 6 exchange developers to help discuss and make sure people don't exploit the system.

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18 months ago, # |
  Vote: I like it +10 Vote: I do not like it

So, is it going to be real trading app like others? If yes, will it be feasible because there are only around 20-25k active people on codeforces and most of them are not aware of trading. So how are you planning?

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    18 months ago, # ^ |
      Vote: I like it +3 Vote: I do not like it

    That's the goal of the liquidity providers. Their algorithms make sure that there are limit orders with low bid-ask spread at all times on the exchange for a seamless user experience. However I will try to make it popular among those interested in cp and trading. There are lot of interesting hypothesis some people might want to bet on and see.

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18 months ago, # |
  Vote: I like it +6 Vote: I do not like it

So you'll be able to bet on whether someone's rating go's up or down? I'm not quite understanding your idea, please provide more context, thanks.

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    18 months ago, # ^ |
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    I've elaborated on the idea in the blog post.

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      18 months ago, # ^ |
        Vote: I like it +14 Vote: I do not like it

      elaborate more, sir, that's what I asked in the comment above.

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18 months ago, # |
  Vote: I like it 0 Vote: I do not like it

Will you be making it open source?