Hello, first of all. I am 21 and I have been Daytrading (in real life) now for 2+1/2 years, basically since I turned 18. The purpose of this post is, to improve the economy in PokeMMO and it's features.
In this post, I will explain how a single mechanic heavily impacts the economy in this game, I will also suggest feature improvements for the Global Trade Link.
The "Listing fee":
First of all, it is not needed. Nobody is benefitting from it, it is only taking away, not giving anything, it is against the player and against a free market environment. Let me give you an example of what I exactly mean: If you trade for example the stock market, or any existing market out there, again referring to real life, then you have to pay trading commissions / and or fees. Who is benefitting from that? The Broker you are trading with, okay so somebody is benefitting from it. As far as I am concerned this is not the case with PokeMMO, please tell me if I am wrong here. So essentially what the Listing fee does, is cutting into players profits for no reason, at all.
So now, you may say: 100/1000$ listing fee on items/Pokémon, where is the issue, I can still make a profit? Yes, but also no. Here, the deciding factor comes into play: I am sure some of you have tried this and then realised it does not work: You wanted to sell an item or a Pokémon for 50 dollars or 500 dollars more, but then you realised where you normally would make 50$ in profit, you would actually lose 50 dollars because of the listing fee.
Not only does the listing fee eat away a players profit, but it also takes a more short term trading approach out of the game, a whole mechanic in the game is essentially missing because of the listing fee, and therefore it fails to re-create a real economy in a virtual world. I am not saying that this should be the aim, but it certainly would attract more players who are specifically interested in the economic aspects of PokeMMO, and it also would benefit every single player. Does not matter what he is interested in.
Now someone may say: Okay cool, but I only want to buy and sell items based off if I need them or not. Well, not only does the listing fee prohibit a more short term trading environment, but it also reduces the amount of items available in the market. It is simple, the more players are trading in the market, the more volume is there, the more volume there is, the more available items (liquidity) there will be. Some items are scarce on the market, removing the listing fee would fix this immediately. Because now you actually would have people, who like the economic aspect of the game, actively trading and trying to make a profit for one, two or more dollars. (Buy low, sell higher concept).
Through the active buying selling, you would now have much more items available for the average player. Through the added liquidity (availability of the items) and the ability to easier profit from trades because there is now no listing fee, there would now be a lower difference in the prices, and more inexperienced players would not fall so easily anymore, for players that try to take advantage of more inexperienced players, with high item and Pokémon prices.. With a dense market environment, items & Pokémon will now also sell faster, because there are people actively trading. Berry farmers, Item farmers & other players will now get their items sold much faster.
Market manipulation, abuse of high equity:
Just like in real market environments, this also applies to PokeMMO, this one especially applies to items with low liquidity (low availability of the items). As an example here I took the Dusk Stone, it has only 16 listings, which means it is very susceptible for manipulation. A player with high equity could come in, and buy up all dusk stones, and leave no listings on the market, therefore he could decide the price. Let's say he buys all the stones up on the first site you can see on the screenshot, then he would simply list them for 7000$, and make a huge profit, if new listings that are cheaper than his come in, he could just simply buy them all up and keep listing it for 7000$. Now the average player will buy the dusk stone for 7000$, and players with more equity will now make huge profits. Also other players will likely add their pricing below his, means like 6900$. So essentially what is happening is, that the listing fee makes some item categories highly susceptible to high equity abuse and dramatic increases in price. In a place where you can buy for 6000 and sell it for 6001$, you will have more players listing their items in smaller increments, because the 100$ listing fee would not eat into their profits. So currently, the prices increase exponentially while the profit is 100$ less per item. A 1$ price increase would now yield the same for the person who listed the item, as a 101$ price increase. With more players trading, you will also impede the ability of players with high equity, to take advantage of low liquidity (low availability of items) environments, simply because they would need much more equity to have an impact, and because of the price density it would likely not pay off so much, or they would even lose all their money trying to control the price.
How can we fix this:
Now the question arises, what is even the purpose of the listing fee? Why does it exist? Does PokeMMO aim to make the economy more realistic? Should it be harder to buy and sell items? In my opinion, it not only impedes trading, but it also makes it impossible for a realistic market environment to exist, if that is the aim.
Anyways, my suggestion is: Remove the listing fee or reduce it significantly, as a reference: In real market environments you pay 1-3$ approximately most of the time, for 100.000 Units. If you really want to hold onto the listing fee, which I do not recommend, reduce it for items to 1-3$ and for Pokémon to 10-30$.
Global Trade Link Features:
To enhance and ease trading, I recommend the following features:
Introducing different order types, for example "take profit" or "stop loss" features:
- Buy Limit/Sell Limit/Stop (Order): Player will automatically buy an item, if someone lists it / if it becomes available at X price. ("Limit" is the term for only X price or better, and "Stop" is the term for only X price or worse)
- Take Profit / Stop Loss (Order): If you have bought an item, it will automatically sell it if another player puts out a "Limit Order" or if a Limit Order is already available at the requested price.
- Post Only (Order): It is the type of order that is currently existing in the game, it is basically a "listed item".
- Market Order & Market View/Filter: Will buy an item at the best available price. This will especially help new players not getting scammed by buying an item that is already available for much less, but it also skips the process of searching through dozens of items for the best price, or sorting after price. For example a Filter could be implemented, that only shows items available at their best price, so you don't have to scroll through the same item with a different price over and over again, for example when you search in the category "Berries".
Advanced Trading Features:
I will lean myself out of the window with those features a bit, they will be very useful for traders especially.
Price Data can be added, for example what the best price was for an item for X amount of time.
If we say for example, what was the price from 16:00pm-17:00pm in the 24 hour format, we need the following data:
Open: Also called the opening price (the price at 16:00pm)
Close: Also called the closing price (the price at 17:00pm)
High: The highest price between 16:00-17:00pm
Low: The lowest price between 16:00-17:00pm
With that data, players can start analysing trends in price, and therefore buy items and speculate on price rising and falling. Then, when they think it will fall, they can sell their items.
Candlestick Charts:
These can basically represent the price data, and give them a picture of price. Of course this is really far out of the norm, but I will still mention it, because that is basically what you can already use, but you would need to create them by yourself currently. (Drawing for example or with a program)
Final word:
I think I said everything, please add your opinions and point out mistakes.
I think this would be a huge improvement for everyone, there is as far as I am concerned, no disadvantage for any player, to the things I mentioned, but only advantages.
Question
DerKacktus
Introduction:
Hello, first of all. I am 21 and I have been Daytrading (in real life) now for 2+1/2 years, basically since I turned 18. The purpose of this post is, to improve the economy in PokeMMO and it's features.
In this post, I will explain how a single mechanic heavily impacts the economy in this game, I will also suggest feature improvements for the Global Trade Link.
The "Listing fee":
First of all, it is not needed. Nobody is benefitting from it, it is only taking away, not giving anything, it is against the player and against a free market environment. Let me give you an example of what I exactly mean: If you trade for example the stock market, or any existing market out there, again referring to real life, then you have to pay trading commissions / and or fees. Who is benefitting from that? The Broker you are trading with, okay so somebody is benefitting from it. As far as I am concerned this is not the case with PokeMMO, please tell me if I am wrong here. So essentially what the Listing fee does, is cutting into players profits for no reason, at all.
So now, you may say: 100/1000$ listing fee on items/Pokémon, where is the issue, I can still make a profit? Yes, but also no. Here, the deciding factor comes into play: I am sure some of you have tried this and then realised it does not work: You wanted to sell an item or a Pokémon for 50 dollars or 500 dollars more, but then you realised where you normally would make 50$ in profit, you would actually lose 50 dollars because of the listing fee.
Not only does the listing fee eat away a players profit, but it also takes a more short term trading approach out of the game, a whole mechanic in the game is essentially missing because of the listing fee, and therefore it fails to re-create a real economy in a virtual world. I am not saying that this should be the aim, but it certainly would attract more players who are specifically interested in the economic aspects of PokeMMO, and it also would benefit every single player. Does not matter what he is interested in.
Now someone may say: Okay cool, but I only want to buy and sell items based off if I need them or not. Well, not only does the listing fee prohibit a more short term trading environment, but it also reduces the amount of items available in the market. It is simple, the more players are trading in the market, the more volume is there, the more volume there is, the more available items (liquidity) there will be. Some items are scarce on the market, removing the listing fee would fix this immediately. Because now you actually would have people, who like the economic aspect of the game, actively trading and trying to make a profit for one, two or more dollars. (Buy low, sell higher concept).
Through the active buying selling, you would now have much more items available for the average player. Through the added liquidity (availability of the items) and the ability to easier profit from trades because there is now no listing fee, there would now be a lower difference in the prices, and more inexperienced players would not fall so easily anymore, for players that try to take advantage of more inexperienced players, with high item and Pokémon prices.. With a dense market environment, items & Pokémon will now also sell faster, because there are people actively trading. Berry farmers, Item farmers & other players will now get their items sold much faster.
Market manipulation, abuse of high equity:
Just like in real market environments, this also applies to PokeMMO, this one especially applies to items with low liquidity (low availability of the items). As an example here I took the Dusk Stone, it has only 16 listings, which means it is very susceptible for manipulation. A player with high equity could come in, and buy up all dusk stones, and leave no listings on the market, therefore he could decide the price. Let's say he buys all the stones up on the first site you can see on the screenshot, then he would simply list them for 7000$, and make a huge profit, if new listings that are cheaper than his come in, he could just simply buy them all up and keep listing it for 7000$. Now the average player will buy the dusk stone for 7000$, and players with more equity will now make huge profits. Also other players will likely add their pricing below his, means like 6900$. So essentially what is happening is, that the listing fee makes some item categories highly susceptible to high equity abuse and dramatic increases in price. In a place where you can buy for 6000 and sell it for 6001$, you will have more players listing their items in smaller increments, because the 100$ listing fee would not eat into their profits. So currently, the prices increase exponentially while the profit is 100$ less per item. A 1$ price increase would now yield the same for the person who listed the item, as a 101$ price increase. With more players trading, you will also impede the ability of players with high equity, to take advantage of low liquidity (low availability of items) environments, simply because they would need much more equity to have an impact, and because of the price density it would likely not pay off so much, or they would even lose all their money trying to control the price.
How can we fix this:
Now the question arises, what is even the purpose of the listing fee? Why does it exist? Does PokeMMO aim to make the economy more realistic? Should it be harder to buy and sell items? In my opinion, it not only impedes trading, but it also makes it impossible for a realistic market environment to exist, if that is the aim.
Anyways, my suggestion is: Remove the listing fee or reduce it significantly, as a reference: In real market environments you pay 1-3$ approximately most of the time, for 100.000 Units. If you really want to hold onto the listing fee, which I do not recommend, reduce it for items to 1-3$ and for Pokémon to 10-30$.
Global Trade Link Features:
To enhance and ease trading, I recommend the following features:
Introducing different order types, for example "take profit" or "stop loss" features:
- Buy Limit/Sell Limit/Stop (Order): Player will automatically buy an item, if someone lists it / if it becomes available at X price. ("Limit" is the term for only X price or better, and "Stop" is the term for only X price or worse)
- Take Profit / Stop Loss (Order): If you have bought an item, it will automatically sell it if another player puts out a "Limit Order" or if a Limit Order is already available at the requested price.
- Post Only (Order): It is the type of order that is currently existing in the game, it is basically a "listed item".
- Market Order & Market View/Filter: Will buy an item at the best available price. This will especially help new players not getting scammed by buying an item that is already available for much less, but it also skips the process of searching through dozens of items for the best price, or sorting after price. For example a Filter could be implemented, that only shows items available at their best price, so you don't have to scroll through the same item with a different price over and over again, for example when you search in the category "Berries".
Advanced Trading Features:
I will lean myself out of the window with those features a bit, they will be very useful for traders especially.
Price Data can be added, for example what the best price was for an item for X amount of time.
If we say for example, what was the price from 16:00pm-17:00pm in the 24 hour format, we need the following data:
Open: Also called the opening price (the price at 16:00pm)
Close: Also called the closing price (the price at 17:00pm)
High: The highest price between 16:00-17:00pm
Low: The lowest price between 16:00-17:00pm
With that data, players can start analysing trends in price, and therefore buy items and speculate on price rising and falling. Then, when they think it will fall, they can sell their items.
Candlestick Charts:
These can basically represent the price data, and give them a picture of price. Of course this is really far out of the norm, but I will still mention it, because that is basically what you can already use, but you would need to create them by yourself currently. (Drawing for example or with a program)
Final word:
I think I said everything, please add your opinions and point out mistakes.
I think this would be a huge improvement for everyone, there is as far as I am concerned, no disadvantage for any player, to the things I mentioned, but only advantages.
Edited by DerKacktusLink to comment
8 answers to this question
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now