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My plan for capitalising bitcoin ETF, please give me your thoughts

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by COINS NEWS 88 Views

EDIT - You know what? You guys changed my mind. I'm just going to spot something with the money instead. Thanks for the feedback

My assumption is that once the ETF is approved, bitcoin will spike. I want to capitalise on this by placing a highly levered position on bitcoin the instance it's announced.

To do this, I have python code monitoring the SEC press releases, as well as multiple news outlet sources (using RSS, the announcement will come to me instantaneously)

The code monitors mentions of 'bitcoin' and 'etf'. If they are mentioned, the code will pass the news to chatgpt, simply asking if the message says the ETF has been approved.

If chatgpt say yes, (technically returns a 1 instead of 0), my account will automatically place a highly leverage position, alert me and stop running.

I've been running this for weeks with no false positives so far, however I can't forsee every possible pitfall.

My only worry so far is the spread at the announcement Is so large that the leverage will wipe the account, however I'm relying on the speed of execution to get in before the market goes into a frenzy. Others have pointed out even the slightest negative impact will liquidate the account which is a consideration. My bet is there won't be any negative impact.

Course I want this plan to work, hence I'm only using 25x leverage, giving ~4% drawdown allowance which I assume should be more than enough. In reality I feel you could do it with 100x leverage however that seems to cut it too close in my opinion

What's your opinion?

submitted by /u/quantumwoooo
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