BoB Market Scam - PM from Kin to DBP

[Mulla Nasrudin]

Оriginally Postеd by Kin

hello !

I'm writing this report to let the directors know about what started as a market experiment in empire and ended to be a global 0.0 (bob territories excepted) market operation.
Making it public or Bob is up to you. I'd just like to remain anonimous‚ for obvious reasons
Good read !

Market Warfare

Summary

1 Introduction : making money on market with 0 resources and a starting capital

2 The market warfare technique and it's actual practical application

3 Results and Economic Impact

4 Conclusions



1 Introduction : making money on market with 0 resources and a starting capital

A year and a half ago after the loss of the pos and the related business i was running, i started to look for alternative ways making money with few time expense and logistic resources and limited capital. I decided to exploit my previous market experience, implant trading ( High value and % profit, and low volume ) and market scams but in a different matter.
The targeted good was low end minerals in low market activity regions. It consisted in buying bulks while having the best buy orders in the regions (since the activity was low that was easier), and reselling them without (or few) transportation. The profit was around 100-150m isk per month for 2-3h/week dedicated to it.
Since the profit was inferior to the same time spent in 0.0, and my trading skills were increasing i decided to exploit sellers mistakes (in opposition to buyer mistake scams i used to run in my early days).
Since Empire market was saturated with buy orders and too active for that kind of market transaction i turned on 0.0 market.



2 The market warfare technique and it's actual practical application

Since the technique is aggressive i decide to try it first in a region filled with BoB enemies and casual empire corporations, this was about 10 months ago (thanks to Blockoindi iirc for the inspiration .

The technique is to put a buy order for an item on the market for 1/1000 of the average market value plus a % to encourage the seller (130k for a tier2 battleship for example). Then to sell it in the same place for the average market value. (very basic)

The practical application needs some tweaking.
Parameters are Item value, Item selling frequency, Extension (number of regions targeted), and Number of orders available with skills.
First the targeted goods must be of high value and high circulation to maximise the impact of each buy order. Naturally i decided it would be ships as they have an high value and sold with a relative frequence.

Second the extension is proportional of the number of orders per region/number of total orders available. In order to increase the number of regions targeted we have to narrow the number of orders per region by identifying the most active and profitable buy orders.
Оf all ship typеs i judged that Battleship and hacs were the most promising. Later i stopped buying hacs to increase the number of regions and started buying capital ships since their value outweight their selling frequency (only one obelisk has been sold in 6 months by ASCN).



3 Results and Economic Impact

Results :

Number of active buy orders (at this time): 287
Number of regions targeted (at this time) : 23
Months of activity : 11
Dedicated Jump clones : 3

Items bought (Values are in millions isk)
MV = market value
T2 Bs 57 * MV : 110 = 6270
T1 Bs 47 * MV : 65 = 3055
Hacs 2 * MV : 120 = 240
Freighters 1 * MV : 800 = 800
Exhumers (not hulk) 2* MV : 50 = 120

Total average isk won : 10355 (10465-110*)
Total isk loss : 65.79 = 23.79 (bo cost) + 42 (pod cost)
Approximative Benefit : 10290

Average monthly benefit : 951
Best monthly Benefit : 2315 (october)
Best buying streak (38d) : 3060 (23/09/06-01/11/06)

Mail asking refund : 30
Threats : 3-4
BoB victims : 0
Friendly victims (*) : 1 (refunded)



4 Conclusions

The economic impact on the targeted entities can be neglected due to the dilution by time and regions. The last months are the most representative of the maximum efficiency that can be reached by one nearly maxed trading char.
Improvements could be done by adding more buy orders with more traders‚ maybe on ѕmallеr ships‚ their leѕsеr value could be balanced by their greater selling frequency.
Time/Benefit wise this is the best i have done‚ but the market will be ѕaturatеd very quickly with more people doing it‚ cauѕing a grеat benefit reduction.