What I like with the combo bot is that it closes the deal at the top of the grid. I miss that at the bottom.
What I now have is 1 active grid and 1 DCA. This gives me a nice trading grid without any DCA orders. I implemented a take profit at 4% and stop loss at 2%. This gives good results, with back testing.
I don’t want these take profit and stop loss percentages. I just want the bot to be always in grid. This can only happen if the bot closes the deal, after last buy, and starts a new deal with a fresh grid.
If you closed the grid at the last buy, and the bot opened another one immediately, you would have paid twice the fee on that last minigrid, as you basically closed a deal and opened another that overlapped with the last minigrid (assuming no price and volume scale).
There could be 2 other options for having the combos always on grid:
Add more DCA levels: This would open further minigrids as necessary.
Dynamic price filters: You can also use the dynamic price filtering. For example, let’s assume your minigrids are 5%, and you have 3. In total, you span a 15% deviation. The next time you could start a deal is 20% down from the entry of the previous deal, at that point you start a minigrid 5% tall that joins with the one that was just exited. The math is not exactly like that to have the two deals perfectly aligned, but it should be close enough.
Let me know if those solutions would be similar to your proposition or you still think that your proposal is different.
This is exactly what I want. If I use DCA there is a void area with no grid. It might take some time before it hits the DCA level and I end up using twice the money.
To avoid double fee you can consider a smart close deal. Just sell what is not needed to start a new deal.
Option 2 is not what I prefer, it needs multiple deals. I just want the bot to be 24/7 in the grid with same amount of $ in orders. This way the bot will always beat holding a bag of crypto.
What do you mean? If you are running a long strategy combo bot and your current mini grid cannot be closed in profit because the price drops out of its range.
Why do you want to close your deals with a loss?
How do you want to stay in the grid without extending it by additional DCA orders and without opening another combo bot for the lower prices?
To make more profit in the future when price go up again.
Example I have a grid of 5 percent up and down the initial order. The price goes down with 7 percent. That is 2 percent below my grid and 3 percent above DCA order. This a void area where no orders are done. If I have a fresh deal and the price stays there for some time I can profit from grid orders between DCA order and original lowest grid level. If the price goes up again into the original grid, I made more profit.
If my original order is $100 and have 5 grid levels there are 5 buy orders of $20. At the bottom I did spend $200 on crypto. That is plenty to start with a fresh grid of $100. I think this is an advantage over DCA orders, you need less dollars to stay in grid. I need around $200 no matter how low the price drops.
The biggest disadvantage of using DCA in grid bot is that if you go 1 box down, you have locked 50% of your budget in a box that does not work for you, that box is waiting for a better price.
If you close the deal, take your loss and start a fresh deal you have again 100% of your budget working in the grid. Meaning all buy and sell orders can be twice as big. That means a sell order with this method gains twice the dollars over the DCA method. So the real loss you took is earned back faster than the virtual loss in the locked DCA box.
If you have $1000 and want 4 DCA levels you need to reserve 80% of your cash for DCA orders. For the close deal method you only need to reserve 20% (a little less because you buy in steps) for the real losses you take.
In DCA mode you have $200 budget per DCA level. This means $100 for initial buy and $20 for each order. You are earning money with $20 trades.
In the deal close method you have a budget of $800 meaning $400 for initial buy and $80 for each order. So you are earning money with $80 trades.
Like that? Assume you spent $100 to buy at $100. Your mini grid is built above your starting price. The price drops below your starting price e.g. 1 %. You close your deal and start a new mini grid. The price drop again. Your start a new mini grid. And so on until the price goes up and stays in the mini grid’s range?
If you start a combo bot the first active grid is above the current price. That’s why at least 1 DCA order below the current price is obligatory for combo bots. Or were you referring to those settings:
Yes, I am referring to those settings. Active minigrids(beta) that gives a grid below starting order.
To emulate the close option I also use take profit 4% and stop loss 2% and DCA level 1(this disables DCA with active minigrid).
This gives good result in back testing.
As @aressanch already wrote, with that you would have
for the mini grid above the price of the grid above the current price. And you would take the loss of both of above grids, too, even though you would directly start the lower of those two again.
combo deal 1
bottom reached
combo deal 2
bottom reached
combo deal 3
grid top
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grid bottom
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grid top
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grid bottom
—
grid top
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grid bottom
Or do you only want to close the top grid as soon as the bottom of the bottom grid is reached?
If you are planning to have grid deals that are closed as soon as they turn into a loss, wouldn’t a trading bot with dynamic price filter do that trick for you as @aressanch also already suggested
You can configure your Trading Bot (not Combo Bot!) deals with Dynamic price filter to close with a loss as soon the price drops. Then you would only have a single “grid line” active all the time. Do you want to achieve something like that?
thats exactly what I test now and the results are quite promissing so far.