Friday, 9 January 2015

The PLEX Experiment - Buying and Selling PLEX for Profit

Following up on my last post where I mentioned wanting to be a bigger player in the PLEX market I'm slowly increasing my PLEX market presence in 22 Empire regions. The following is a report analyzing all of my PLEX transactions on the 8th of Jan 2015.

I bought 27 PLEX for a rough average of about 770 million each and sold 19 for an average of more than 815 million each. 815 - 770 = 45 million spread. Assuming my costs to buy and sell 1 PLEX are 15 million each that would represent a profit of 30 million each.  Actually my average cost is less than 15 mil (a bit more on some characters, much less on others), but 15 mil is a nice round number to work with.

So far today (09 Jan 2015 which isn't over yet) I've bought another 34 for around 775 mil each and sold 26 for close to 820 mil each. 820 - 770 = 45 mil, about the same average margin (45 mil) and same profit of 30 mil per PLEX.

That's roughly 3.75% profit (using round numbers 30 / 800 = 0.0375). 3.75% doesn't sound like much but it adds up with volume. Buying and selling 25 PLEX per day at 30 mil profit each equals 750 million a day, or 22.5 billion a month. Not too shabby when you look at it like that.

Double the volume (50 per day) and it comes out to 45 billion a month.

Of course 30 mil profit per PLEX is probably too much to expect over the long term, especially when dealing in greater volumes. Even 20 million profit might be too much but I shouldn't have any trouble averaging 10 or 15 million profit per PLEX in such low volumes.

The big questions are

1. How tight will margins and spreads get as volume increases?
2. Will it be possible to increase volume to 50, 100 or more without becoming a no-lifer and if so just how much time and effort will it take?

Assuming I can reliably (and without too much effort) move 50 per day at a profit of 10 mil each that'd be 500 million a day and 15 billion a month. Move 100 a day and the numbers double, 1 bil per day, 30 bil per month.

Over the next weeks and months, I intend to continue slowly increasing my presence in the PLEX market until I find the sweet spot between volume and profit margins where I make the most ISK without too much effort.

Several of my characters have 0 standings and better standings are definitely necessary to stay in the game when spreads drop under 18 million. I'll have to grind standings on all of those characters and doing it the quick way is going to cost 3+ billion per character.

If the experiment works out really well, I'll probably wind up dropping out of most of my current markets and whittling my list of items down to just the best of my current items (no more than 50, probably more like 25-30 or even less).

1 comment:

  1. You could just get into margin trading scams at a hub like Jita, Amarr, Dodixie or Rens. You'd probably put in considerably less effort, less upfront investment, require fewer accounts, no risk (if you do it right) and make the same, if not more, profit.

    Or, if you prefer an honest life, you can flip it around and spend your time busting scams. I made 10B in two days, just busting scams set up by amateurs. They would put up margin orders for "rare" items, at the more remote hubs. I'd fly to Jita in a fast 'ceptor, get the item, and sell it to them for about 20% of their posted price. Since they didn't knkow how to drain the residual of the margin order, I got their ISK. Very lol and paid for my PLEX for a year, plus some other shinies.