With BTC hitting ATH a lot of new users come to the bot market to make those insane gains.
Even i did in late 2021. Didnt realised it was the start of almost 2-3 years of brutal bear market, exchange scams and crazy market manipulation.
So i wanted to make this post for a newbie who has just come into DCA and crypto trading . I will share my experience and also a starter strategy for people who dont have time to analyse/backtest and spend tons of time.
This strategy is not for coins you want to hold but just trade.
If you want to hold coins you like just buy āx $ā worth of it daily. Pretty good for hodl coins
For trading coins:-
Firstly anyone telling you where the crypto market will go even tomorrow is lying. Nobody nor any indicator can predict human emotion or market manipulation
That brings us to the first aspect of the Starter Strategy.
Deal Start condition.
Just ASAP is good
I have seen tons of people do tons of paper trading backtest optimization paying crazy monthly fees for the perfect entries. Let me tell you this for free.
They arent worth it . Atleast over a good period of time.
So ASAP is good.
Using ASAP you are always in the market and not trying to predict it.
As ASAP can start deals from wicks we need good deviation coverage.
Running long and on spot -60% coverage is good. Lets not do shorts as it needs too much time and spot doesnt let you short anyway.
ASAP start covering -60% fall.
Now what pairs to run. Except for BTC every pair can go to zero. Thats just how it is in crypto so running more pairs with less funds in each is better than lots of funds in one pair.
In DCA volatility is king. Recently memecoins have been great for it. So pick whatever memecoins you like.
Recently tried combo bot on MOODENGUSDT and AGLD and its been pretty good
ASAP start -60% coverage memecoin pairs
Now the settings. DCA bots are great but my new favorite is combo bots as they combine DCA + grid.
As we will run with low funds per pair your recovery % needed to get to average price will be high. Instead of waiting forever to recover,
Combo bots fill the recovery gap with grid orders allowing you to reduce unrealised loss using grid transaction profits.
Back in late 2021 people ran cheap dca bots <250$ ones and got stuck at the first retracement for months. Eventually the patience goes off and deals are closed in loss.
With same < 250$ i am suggesting a combo bot setting which might help you recover losses every day.
Bot Stats
Coverage -60%
DCA orders at every -2.5%-5%-7.5%-10% ā¦ -60%
Step Scale 1.0
Volume Scale 1.05
DCA orders 24
This costs 225$ per pair
Minigrid orders 5 at 0.5% gaps
One more important thing is making sure the pair you select can do 1$ grid order trades. Bybit is a great excahnge for this as you get a fair few pairs which allow low order sizes.
If you want to invest more funds in a settings per pair then you can make volume scale 1.1.
Beyond that i dont recommend.
If the trading pair falls -60% then you need a +50% recovery( volume scale = 1.05) to get to avg price.
A big climb for DCA bot but combo bot just need price ranging to recover losses
Bot settings:-
https://app.gainium.io/combo/67354f86f31a5bdbca9a2821?a=424&aid=share-bot&share=83833917-906c-4811-876a-7797ab2083c0
This is not financial advice nor is a guarantee settings that work. This is just my opinion .
For people who dont have time but want to trade its a good starting strategy.
Capital recommendation.
1k is a good minimum amount as you can run 5 pairs .
Changing pairs is recommended when volatility dries up and moves to different pairs.
If you dont have time stick with bigger memecoins.
If you are tight on budget running 5 pairs on 500$ is also acceptable but know that you will run out of funds for a -40% in all 5 pairs. Without getting too technical just letting you know that combo bots deals run longer than dca bot so it is a risk running with half the funds
ROI expectations:
With spot 0.1-0.2% per day ROI is very good. Especially if you are spending no time on trading.
Hopefully all this helps.