While the bullish background appears in February, think of traders trying to time the market. One savvy trader named Samjhill on Reddit has created a trading tool that outperforms Dollar Cost Averaging (DCA) for buying Bitcoin (BTC).
DCA is a strategy in which investors regularly buy small amounts regardless of price fluctuations. This works in contrast to traders looking to get the lowest entry by accurately timing the fall and avoiding “catching the falling knife”.
The aptly named “Buy the Dip Bot” aims to “get the best price for a given asset using a limit strategy.” Inspired by another Reddit user who suggested a manual limit buy order strategy to get the best entry price, Sam took it one step further by programming a dip buy bot.
The bot places limit orders several intervals below the current price, and if the order is filled or canceled, it starts again. Using AWS, Python, Lambda, DynamoDB and React technologies. JS when hosted on Github, startup costs are low, “about $5 per month”.
While the bot has been running since December, it hit its first milestone yesterday. Having achieved profitability over conventional dollar cost averaging, “the price advantage per coin is now around (cheaper) 5-10%, which you can also consider getting a lot more coins for your money,” Sam told Cointelegraph.
The bot runs the Library for backtesting to determine the best entry points for limit buys. A complex process, the work paid off and ended with a “winning strategy”.
Related: TokenBot Helps Cryptocurrency Traders Build Social Communities and Monetize Market Knowledge
When asked by Cointelegraph if he would recommend a bot over regular DCA, Sam replied that it depends on where you are on your BTC journey:
“For people who are just starting out, a regular DCA probably makes more sense since your goal is probably to collect as many coins as possible. For those later in their journey, they may already have a decent stack and want to minimize the increase in their base cost, and so can get more out of it.”
Sam, who first learned about Bitcoin around 2013, added that he uses both DCA and a cap strategy “to get a flatter coin growth curve.”
While the future of a Bitcoin trading bot is currently in the orange, Sam has built a system for easy integration with other coins. Ethereum (ETH) is featured on the Github page, and Sam is hinting that he may be putting other coins into production.
While the bullish background appears in February, think of traders trying to time the market. One savvy trader named Samjhill on Reddit has created a trading tool that outperforms Dollar Cost Averaging (DCA) for buying Bitcoin (BTC).
DCA is a strategy in which investors regularly buy small amounts regardless of price fluctuations. This works in contrast to traders looking to get the lowest entry by accurately timing the fall and avoiding “catching the falling knife”.
The aptly named “Buy the Dip Bot” aims to “get the best price for a given asset using a limit strategy.” Inspired by another Reddit user who suggested a manual limit buy order strategy to get the best entry price, Sam took it one step further by programming a dip buy bot.
The bot places limit orders several intervals below the current price, and if the order is filled or canceled, it starts again. Using AWS, Python, Lambda, DynamoDB and React technologies. JS when hosted on Github, startup costs are low, “about $5 per month”.
While the bot has been running since December, it hit its first milestone yesterday. Having achieved profitability over conventional dollar cost averaging, “the price advantage per coin is now around (cheaper) 5-10%, which you can also consider getting a lot more coins for your money,” Sam told Cointelegraph.
The bot runs the Library for backtesting to determine the best entry points for limit buys. A complex process, the work paid off and ended with a “winning strategy”.
Related: TokenBot Helps Cryptocurrency Traders Build Social Communities and Monetize Market Knowledge
When asked by Cointelegraph if he would recommend a bot over regular DCA, Sam replied that it depends on where you are on your BTC journey:
“For people who are just starting out, a regular DCA probably makes more sense since your goal is probably to collect as many coins as possible. For those later in their journey, they may already have a decent stack and want to minimize the increase in their base cost, and so can get more out of it.”
Sam, who first learned about Bitcoin around 2013, added that he uses both DCA and a cap strategy “to get a flatter coin growth curve.”
While the future of a Bitcoin trading bot is currently in the orange, Sam has built a system for easy integration with other coins. Ethereum (ETH) is featured on the Github page, and Sam is hinting that he may be putting other coins into production.
