Hi Turbooster,Oh wow. This is really tough! Hope this hasn't hit anyone close to you.
thank you for the questions, that's a great suggestion (personally I'm a fan of infographics which allow to grasp info quickly). Hopefully the following paragraph will make matters crystal clear P.S. I'm glad that you found the CHF info useful. CHF's strenghtening is a hot topic in Poland as around 700,000 people have mortgage denominated in CHF. With the Swiss currency rising in value those individuals need to pay to the bank a lot more PLN (30-40% more than the property's initial value), so if someone had a 300,000 PLN (around 120,000 CHF) mortgage six or seven years ago, now they need to repay around 450,000 PLN (it's still 120,000 CHF). Never apply for a mortgage denominated in a currency different than the one you're earning in. Now, let's go through the fund details.
Fortunately it hasn't hit affected any of my relatives, but I know people who got into this kind of trouble. If the 700k figure is correct, that's a 1,81% of the Polish citizens, in a room of 50 people that's 0,9 person with a CHF mortgage
My family's lucky enough to be free of any mortgage/credits etc. It's something rather rare, and I understood the conveniance of it some years ago as I got interested in finances and was reading Robert Kiyosaki's "Rich Dad, Poor Dad". The books' a clever read (personally I don't recommend any other books by Kiyosaki), I learnt a lot, but the most amazing fact was that my father was doing all the smart things described in that book starting from the early 90's, investing heavily in stocks, bonds, land and estate. I watched him as a kid and as a youngster, but I understood what he was aiming at only after reading that book- and I was wondering how did he get that knowledge (Kiyosaki wrote his book 10 years later
). A lot of cryptocurrency investors should have read that book before jumping in with all of their money... I've got a good story about Napoleon Hill's "Think and grow rich" how I first discovered the book’s content to be true while talking to one of the Polish multimillionaires and then experienced it myself, but I'm already off-topic so I'll leave it for a different occasion
land valued at 33.000 USD. The land (a building plot) consists of 1023 square meters. 20.07.2014 with the price of LTC at 8,62 USD DSOL-LF share standing at 0,1 LTC (0,862 USD), the total number of shares was calculated according to this formula:
Land value in USD / share value in USD = number of shares
33000 / 0,862 = 38238
each share will be given 0,0267 square meters of the land.
To make matters clear, the value of shares wasn’t tied to anything (simply set to 0,1 LTC), it was instead backed by land in case DSOL-LF goes belly up.
With the drop in LTC value against USD, the number of shares might be updated to match the value of the land (I suggested it earlier, but it was never done).
This isn't too relevant for now as only a fraction of the shares are on the market.
The minimum buyback value is calculated on the basis of funds under DSOL-LF management and the number of outstanding shares.
MBV = Funds under management / number of outstanding shares
As you know, our funds are held in USD because of Forex trading, and then the funds’ value is converted to LTC at the price current at the moment of calculation.
And regarding the amendment:
Let us assume that at a point in time the price of 1 LTC is at 2,00 USD, price per share at 0,20 USD.
depending on how volatile the LTC price is in the recent days, we will add 10-20% to the Minimum Buyback Value to arrive at the dynamic per share price.
e.g. Dynamic per share price = MBV * 10%
Without knowing the FUM the MBV can't be calculated. The FUM are impossible to know from the outside.
Also when "recent days" isn't specified in the amendment this can basically be anything. In the formula MBV * 10% (which should read MBV * 110% I guess) do you want the percentage to be variable and give it a cap of 10 or 20% ? Can this also be -10 or -20%?
I cut your answer down a little to make it more readable. If I have quoted you wrongly anywhere tell me and I'll fix it.
Turbooster, you’re helping DSOL-LF a lot by asking your questions, I always try to be as thorough as possible, trying to cover aspects from multiple angles (when I was creating DSOL-LF I wanted it to cover all the headaches of a conservative trader/investor), but my perspective is still one-sided, it’s great to have someone who will take up additional issues and inspire a deeper description. Now, the entertaining part.“Without knowing the FUM the MBV can't be calculated. The FUM are impossible to know from the outside.”
That is true, the precise FUM value cannot be known from the outside. Up to a degree it could be estimated with the use of DSOL-LF trade history from Litecoininvest.com and on the basis of LTC price e.g. from Btc-e. It’s not going to be a precise number, but here’s how one can get a sneak-peak into FUM.
1. Check the last FUM value.
2. Check the trade history at Litecoininvest.com; it’s rather easy to spot trades made between DSOL-LF and shareholders, this will be the bulk (or all) of trades at a certain previously announced dynamic price. Look at every single portion of shares sold from the time of last FUM update, write down the date and time, the amount of shares and their LTC value (or simply the LTC value of that transaction).
3. Use Btc-e.com MetaTrader4 Platform (https://btc-e.com/news/183
) to view the historical price of LTC at the date and time corresponding/following what was written down earlier. I try to sell the gathered LTC asap, so it can be assumed that the LTC is gone within 24 hours. Also, I try using local exchanges to get a price better than the one at Btc-e.
4. Calculate the estimated value of each portion of shares and add up all of the numbers to the previous FUM value.
With a bit of work FUM can be estimated in this way, and that’s a starting point for further calculation. All of this calculation might not be that important as DSOL-LF wants to keep the price of one share at e.g. 0,4 USD in the short-term. One of the most basic aims is to stabilize the price.“Also when "recent days" isn't specified in the amendment this can basically be anything. In the formula MBV * 10% (which should read MBV * 110% I guess) do you want the percentage to be variable and give it a cap of 10 or 20% ? Can this also be -10 or -20%?”
“Recent days” can basically be anything indeed, I might have specified it the way I’m seeing this. I monitor LTC’s price several times a day, constantly monitoring price swings and the level of volatility. “Recent days” would stand for hours in cases of extreme price spikes to 1-3 days. If the volatility is low and the price remains within a narrow range, there will be no reason for a price adjustment.
You’re right about the formula, thank you for pointing to that, I’ll edit my previous post, it should be times 110%. The mentioned percentage might exceed 20% if necessary (in extreme volatility), it might as well be lower than 10% if price action dries up. We may also consider a flat rate here, e.g. 15% at all times, to give some margin for price swings, with more frequent price adjustments (or even having the mechanism automated with the use of a trading bot). Lastly, the rate might be a negative value, so -10 or -20% is perfectly acceptable as it allows the price to remain just.
To give the shareholders some hints on volatility, I will share one of the simplest methods that I use to monitor the markets.
We’ll need the MetaTrader 4 trading platform from Btc-e (here’s the link again https://btc-e.com/news/183
Now we’ll need three charts of LTC/USD, each will have a different time period. The first one on the left is Daily, the middle one is 4 hour, on the right it’s 1 hour timeframe.
We’ll be using two indicators that are standard MT4 indicators, both of them will be applied to the chart in two different configurations. The first indicator is Bollinger Bands, the second is Average True Range. To skip the configuration details I’ll put a chart template below (a link or instruction how to create it), it’s enough to load the template to have a chart that is exactly the same as mine. If you do it on all of the three charts and you position the charts as I did, you’d be looking at what I’m looking at:
That's it for tonight, tomorrow I'll be showing how I analyze the charts.
Here's an instruction regarding the MT4 chart template. You can either download it from tinyupload: http://s000.tinyupload.com/?file_id=72471584186610963618
or you can create it directly on your computer by following these simple steps:
1. Open a Notepad document
2. Copy and past the following content:
3. Now all you need to do is to Save as, with an appropriate extension ".tpl" ( .tpl is a MT4 template format), so name the file as for example BB_ATR.tpl or simply BB.tpl
4. From now on the file should be recognized as a MT4 template and you should be able to load chart settings with the use of this template.