bitshares · shulthz · Feb 24, 2020 · Feb 24, 2020 · Feb 24, 2020 · Feb 24, 2020
diff --git a/baip-0004.md b/baip-0004.md
@@ -0,0 +1,104 @@
+```
+BAIP: 004
+Title: Use 1 hours period EMA(6) to instead of BAIP2
+Authors: shulthz
+Status: Draft
+Type: Consensus 
+Created: 2020-02-22
+```
+
+# Abstract
+Use 1 hours period EMA(6) to instead of BAIP2
+
+# Motivation
+BAIP2 track the real-time price too slowly, when the price has plummeted, there will have a big discount space for bitasset, it need two days to repair the price, this will crush the confidence of the holder of bitasset, harm the bitasset.
+
+EMA have a key point is more better than BAIP2: The EMA is a moving average that places a greater weight and significance on the most recent data points.
+
+This FEED PRICE can track the real-time price more quickly, can avoid the lower shadow and repair price more faster(but still need one or two hours to repair).
+
+The one hour will be cooling time.
+
+Shorting attack will need more time to make the price down.
+
+There still have a big discount space, so i think to add the Weighting factor * Current price to make the big discount space more smaller.
+
+Weighting factor * Current price will increase the nondeterminacy of feed price.
+
+# Rational
+
+Follow the BSIP76 and BSIP58.
+
+# Specifications
+
+**FEED PRICE =max (Weighting factor * 1 hours period EMA(6) + Weighting factor * Current price，Current price)**
+
+Current price : The real-time BTS price of CEX, and notice: we still have many feed provider give a most lower feed price of CEX.
+
+1 hours period EMA(6): Get the latest bar data from CEX，then calculate out the EMA6.
+
+Weighting factor: EMA(6) is the latest bar.      
+The Weighting factor of EMA(6)=EMA(6)/(X * current price + EMA(6)), We can try X=5 first，X=(1，10）
+
+## Explanation：
+As the EMA（6）come from the latest finished 1 hour bar, and the current price come from the next hour which the 1 hour bar didn't finish, so the feed price was constituted by a fixed EMA（6）in 1 hour and a variable current price.
+
+If use proportion of weighting factor, the weighting factor of EMA（6）will be great when the price spread became great between EMA（6）and current price, the value of X will determine the upper limit,  if the price spread became small, the weight of EMA(6) will become small followling.
+
+proportion of weight X=6，data come from huobi 1hour EMA6，2020/02/15 22：00 to 2020/02/17 03：00
+
+| EMA\(6\) | CEX PRICE   | FEED PRICE      | EMA WEIGHT   | CEX weight    | spread    | FALL       |
+|-----------|---------|----------|----------|----------|----------|----------|
+| 0\.0389   | 0\.0366 | 0\.0369  | 0\.1505  | 0\.8495  | 0\.9457% | 6\.28%   |
+| 0\.0385   | 0\.0332 | 0\.0341  | 0\.1620  | 0\.8380  | 2\.5856% | 15\.96%  |
+| 0\.0373   | 0\.034  | 0\.0345  | 0\.1546  | 0\.8454  | 1\.5003% | 9\.71%   |
+| 0\.0364   | 0\.0332 | 0\.0337  | 0\.1545  | 0\.8455  | 1\.4891% | 9\.64%   |
+| 0\.0359   | 0\.0346 | 0\.0348  | 0\.1474  | 0\.8526  | 0\.5539% | 3\.76%   |
+| 0\.0357   | 0\.0345 | 0\.0347  | 0\.1471  | 0\.8529  | 0\.5116% | 3\.48%   |
+| 0\.0354   | 0\.0346 | 0\.0347  | 0\.1457  | 0\.8543  | 0\.3368% | 2\.31%   |
+| 0\.0353   | 0\.0348 | 0\.0349  | 0\.1446  | 0\.8554  | 0\.2078% | 1\.44%   |
+| 0\.0352   | 0\.0346 | 0\.0347  | 0\.1450  | 0\.8550  | 0\.2514% | 1\.73%   |
+| 0\.035    | 0\.034  | 0\.0341  | 0\.1464  | 0\.8536  | 0\.4307% | 2\.94%   |
+| 0\.035    | 0\.0349 | 0\.0349  | 0\.1432  | 0\.8568  | 0\.0410% | 0\.29%   |
+| 0\.0351   | 0\.0351 | 0\.0351  | 0\.1429  | 0\.8571  | 0\.0000% | 0\.00%   |
+| 0\.0355   | 0\.0361 | 0\.0361  | 0\.1408  | 0\.8592  | 0\.0000% | \-1\.66% |
+| 0\.0357   | 0\.0361 | 0\.0361  | 0\.1415  | 0\.8585  | 0\.0000% | \-1\.11% |
+| 0\.0359   | 0\.0355 | 0\.0356  | 0\.1442  | 0\.8558  | 0\.1625% | 1\.13%   |
+| 0\.0358   | 0\.0355 | 0\.0355  | 0\.1439  | 0\.8561  | 0\.1216% | 0\.85%   |
+| 0\.0357   | 0\.0354 | 0\.0354  | 0\.1439  | 0\.8561  | 0\.1219% | 0\.85%   |
+| 0\.0357   | 0\.0351 | 0\.0352  | 0\.1449  | 0\.8551  | 0\.2478% | 1\.71%   |
+| 0\.0356   | 0\.035  | 0\.0351  | 0\.1450  | 0\.8550  | 0\.2485% | 1\.71%   |
+| 0\.0354   | 0\.0336 | 0\.0339  | 0\.1494  | 0\.8506  | 0\.8002% | 5\.36%   |
+| 0\.035    | 0\.0333 | 0\.0336  | 0\.1491  | 0\.8509  | 0\.7610% | 5\.11%   |
+| 0\.0345   | 0\.0332 | 0\.0334  | 0\.1476  | 0\.8524  | 0\.5781% | 3\.92%   |
+| 0\.0342   | 0\.0324 | 0\.0327  | 0\.1496  | 0\.8504  | 0\.8311% | 5\.56%   |
+| 0\.034    | 0\.0326 | 0\.0328  | 0\.1481  | 0\.8519  | 0\.6359% | 4\.29%   |
+| 0\.0337   | 0\.032  | 0\.0323  | 0\.1493  | 0\.8507  | 0\.7932% | 5\.31%   |
+| 0\.0333   | 0\.0301 | 0\.0306  | 0\.1557  | 0\.8443  | 1\.6551% | 10\.63%  |
+| 0\.0328   | 0\.0303 | 0\.0307  | 0\.1528  | 0\.8472  | 1\.2611% | 8\.25%   |
+| 0\.0323   | 0\.0317 | 0\.0318  | 0\.1452  | 0\.8548  | 0\.2748% | 1\.89%   |
+| 0\.0322   | 0\.0305 | 0\.0308  | 0\.1496  | 0\.8504  | 0\.8340% | 5\.57%   |
+| 0\.0317   | 0\.0305 | 0\.0307  | 0\.1476  | 0\.8524  | 0\.5809% | 3\.93%   |
+
+
+
+# Coordination
+https://github.com/bitshares/bsips/issues/221    
+https://github.com/bitshares/baips/issues/4      
+https://github.com/bitshares/baips/issues/7        
+https://github.com/bitshares/bsips/blob/master/bsip-0042.md
+
+# Summary for holders
+
+# Discussion    
+https://bitsharestalk.org/index.php?topic=32153.msg341242#new      
+https://bitsharestalk.org/index.php?topic=32143.msg341235;topicseen#msg341235    
+
+# See also
+Exponential Moving Average - EMA Definition: https://www.investopedia.com/terms/e/ema.asp     
+Inflation Index:https://www.imf.org/external/pubs/ft/spn/2010/spn1003.pdf     
+Weight:https://cn.bing.com/academic/profile?id=134466208&v=fos_preview    
+
+# Copyright
+
+This document is placed in the public domain.