Akita T
Caldari Navy Volunteer Task Force
1778
|
Posted - 2013.07.27 22:25:00 -
[33] - Quote
Side-note : it makes the most sense to just talk of "average daily profit as percentage of total investment value" rather than anything else.
So, for instance, when I try to "eyeball" an item's trade worth, I generally go through these paces:
0. Calculate your total tax burden for a whole buy-sell cycle (say, 2*0.35% broker plus 0.6% sales tax equals about 1.3% total) and set a minimum acceptable profit margin (like, say, 1.2%) to get your "not worth bothering with" order gap (in this example, about 2.5%)
1. Look at market graph of as many items you can stand to look at (WHAT they are is irrelevant, only the graph matters), eyeball recent average volume and min/med/max unit trade value 2. Disregard all items where the average median is too close to either the average min or average max, since those won't trade well ; your best bets are items where the average median hovers around the average midpoint of min/max prices 3. Disregard all items where the average gap between average min and average max is lower than your acceptable gap from point 0 (i.e. for this example 2.5%) since they won't satisfy you anyway
4. For all remaining items, in turn, for each 4a. Divide average daily trade volume by TWO (under ideal circumstances, two trades - one buy and one sell - going through you constitute one "transaction" from your side) to get the "best case average volume" 4b. Gutstimate a "competitiveness index" for the item (say, if you think there's about 5 competitors of your expected activity level, or 10 competitors with about half your expected activity level, or so on, make it a "5") and further divide the number from 4a with it to get "your own realistic average volume" from it 4c. Calculate your most likely average profit per unit, then multiply it with realistic volume from step 4b to get a realistic average profit per day from that item 4d. Think about how large your orders will be (take note of volume from 4c) depending on how often you expect to refresh them, and multiply that with average min price to determine initial investment needed (modify directly with your margin trading skill if feeling a bit reckless, or do it at the very end otherwise)
5. Make a table of remaining item names, realistic daily profits from 4c, and likely investment needs from 4d. Add a "daily profits / investment amount) column. Sort by this last column in descending order. 6. See how many of those remaining items could be "doable" given your existing funds TIMES TWO (or even more, optionally after taking into account margin trading if you haven't already), and depending on how many order pairs you can handle, decide which ones to use (you could be giving up some of the more percentage lucrative ones if the investment value is too low compared to available funds)
7. Set your EXPLORATORY buy orders at about HALF (or even less) of the realistic volume from 4c and at a price that is NOT quite the best at the time, but close enough to it (not above the average min though) for much more than just the items that looked good at first. 7b. Wait. Wait some more. Wait even longer. Wait until your orders gets filled. DO NOT fiddle with the price at all. 7c. Do the above steps for sell orders with the items you just got, whenever you notice you got them all. 7d. Take note of how long it took for your orders to process and the type of transactions made to them (single large, multiple small, other) 7e. Adjust volumes from 4c according to your observations above 7f. Reassess items you wish to actually engage in trading with based on the updated table
8. Set your PROPER orders at actual desired volumes and repeat steps from 7 for as long as you want.
9. PROFIT! http://wiki.eveonline.com/en/wiki/User:Akita_T Build your own EVE PC http://oldforums.eveonline.com/?a=topic&threadID=1559734 |