Meme Dumper Correction Bot

Trading Strategies / Bot Setups
1

I’m looking for some help creating a bot that takes advantage of the massive corrections on MEME Coins when BTC falls.

On average when BTC drops a few percentage points, the top meme’s will drop 3x-5x more on a percentage basis, and they also recover super quick.

I’m looking for a way to start a Combo bot when there’s a correction, say 25% or more on the asset I’m trading.

Then use DCA’ing down (maybe a combo bot?) to catch the rest of the move down. I only want to bot to start once there’s a big dip.

Ideas on how to do this?

2

You can use this one: All Time High (ATH) Drawdown Indicator

Basically, it tells you the dip from the highest price in the lookback period to current price. If you want the real ATH, you need to select a big lookback that takes into account all the price history. You can also use a short lookback to make it more responsive to recent price changes. Backtest to see which one is better for your strategy.

A word of caution: I’ve tried to short the dump after the pump, and it’s very difficult. Definitely I don’t recommend any leverage.

If I were to try again I would use a 2-step bot setup: First DCA to get a good average price, then a short combo with a static price filter to only trade over your average price. That way it will only sell when you are already in profit.