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Decreasing efficiency, increasing NAV?
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Archua Zaul
NeoCom Experiments
#1 - 2011-12-08 16:22:02 UTC

Post:

Hello market discussions!

I have a quick question that I was wondering if some of the other traders could answer.

I'm currently station trading with just over 10b. I have been station trading for the last year or so and have been consistently seeing a NAV growth in the region of 0.3% to 0.5% daily for the last few months (3-10b NAV)

Now I understand that efficiency decreases with an increasing NAV eventually resulting in diminishing returns. But my question is at what level of NAV does efficiency start to decrease?

Obviously when I was only trading 20 orders with 1b NAV I was making much higher growth margins per day but the decrease doesn't seem to be linear. In fact as I have neared the 10b mark my growth margin has started to increase.

So I was wondering what other seasoned ( and hopefully wealthier) station traders have found to be the case.
Fred Barbossa
Free Mineral Collective
#2 - 2011-12-09 11:29:18 UTC
Archua Zaul wrote:

Now I understand that efficiency decreases with an increasing NAV eventually resulting in diminishing returns. But my question is at what level of NAV does efficiency start to decrease?


Near immediately, I'm pretty sure you can double 1m in 15 minutes.

Realistic milestones that I've gone through and heard other traders go through are around 1b, 5b and 20b.

Your mileage may vary but typically around those points people jump into a different field because they've reached the end of making money efficiently either in terms of % return, risk or effort.

For example around 1b I switched to a higher volume hub to keep making gains in my profits with the same methods, at 5b I stopped being leveraged to the hilt and started looking for new places to put money, the value of effort increased and the value of safety was decreased by the amount of crap I had going on. At 20b I seriously started thinking about orders that would only have to be updated infrequently, buying low effort money makers (weekly ammo production on multiple accounts, datacores,) research characters if I wouldn't have to look at them for 3 months etc.
Archua Zaul
NeoCom Experiments
#3 - 2011-12-09 12:29:50 UTC  |  Edited by: Archua Zaul
Thanks for your reply.

I suppose it will come down to how much effort versus how much reward I am happy with on a given NAV.

It's interesting that the amounts seem quite low, especially with many traders spouting 50% growth per month on 50b plus NAV. Though I imagine (if those figures are real) that they put in much more effort than I currently do, loggin in for an hour a day.

I was also wondering if at higher NAV are there unusual bumps, ie suddenly growth leaps up by a good few percentage point when hittin 100b ?
Ujagar Sommdax
Aliastra
Gallente Federation
#4 - 2011-12-09 13:24:03 UTC
Just out of curiosity, what it stands for? NAV
Callduron
Dreddit
Test Alliance Please Ignore
#5 - 2011-12-09 15:57:35 UTC
Ujagar Sommdax wrote:
Just out of curiosity, what it stands for? NAV


http://en.wikipedia.org/wiki/Net_asset_value

I write http://stabbedup.blogspot.co.uk/

I post on reddit as /u/callduron.