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Tuesday, 28 May 2013

When is wealth of 1bn not 1bn of wealth?

Answer: when it is not in ISK
 
My current wealth assets are:
  • Sell orders 978,571,201 ISK
  • Items in hanger for sale 21,800,000 ISK
  • ISK in wallet 8,717,192

Of course, my wealth is only the assets that I intend to convert to ISK - so not ships I use, or fittings I have bought, or costs I have spent such as skills or indeed Plex when the day comes.
 
So, technically i have wealth of 1,009,088,393 ISK in under 16 days on Eve.
 
Well, not really.
 
It is very likely that my sell orders will be undercut before they sell and i will chose to reduce my prices.
 
In an ideal world i would like to value my sell orders at the price at which i bought the items for and only recognise the sell order once it has been actually sold.
 
However, while there are some programs out there which will allow this, the Eve game mechanics don’t.  Hence, i take an arbitrary 20% provision to my sell orders which represents the maximum i expect to take the total sell orders down by to eventually sell.  May seem high given i am currently almost doubling my money on average but this ratio has been falling as i have been moving into more expensive items to sell.
 
Hence, when i work out my wealth i take this 20% provision (=-195,714,240 ISK in this case) off the total to arrive at what i call wealth.
 
So, today i have wealth of 813,374,153 ISK
 
I suspect i will be over 1bn ISK in one more cycle.  Still, not bad at all i think.

1 comment:

  1. Haha I always feel like such a noob when I read how quickly others have made it to 1 billion. My account has been active for about five months now (four back in 2010 and I've been back for about a month so far in 2014), and I have yet to make
    it to that amount in wealth.

    Though reading your steps, I'm at least comforted by the fact that you did so by continually re-investing your money directly into trading. I, on the other hand, have been casually exploring different content in Eve and have been consuming as I go. Further, I tend to only risk a third of my ISK at any given time in reinvesting.

    So...higher risk, higher reward. I don't have to feel too bad about not having made as much myself. Particularly because, according to Aura on my android, I've managed to earn 189 mil in just this week alone (though that is split between missioning, mining, and trading).

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