Depends on where we are in the cycle. I want the bot to get down to 60% and then recover back up 55%. That happens during bull market. Will it this time? Who knows. Will I pull out all funds before the top? Who knows.
It’s risk management. I am making my own assumptions about the market cycle, based on what I’ve read, watched and understood. But it could all go off script this year.
You have to backtest bots with sample of coins in all market conditions. Then work out your strategy, hoping it will do something similar this cycle.
And to Salman, why I named it Urma… you’ve seen my profile name? And you read my OP where I explain what this bot is and what it’s based on? And you know that a bot needs a name to explain to you in a quick way what the settings are? It’s not hard to see why surely.
Out of curiosity, you want to be able to handle a dip to 60%, but your current bot then needs a recovery of 54%! to close the deal, that’s pretty steep, isn’t it?
Just an addition to my earlier post, in my experience/idea a stepscale higher than 1 is very disadvantageous for your required change to close a deal.
I personally like to work with a stepscale lower than 1, if you play with that you often see the required change drop hard as well.
And to quickly play with DCA settings and required change I always use this website: https://aim4.nu/
What it says at Max volume is the max usage of the deal.
And you might want to look at the settings below, then the bot gets a little more expensive and you can catch a slightly smaller dip, but the required change is a lot more manageable.
Agree. If you can find a DCA setting to reduce that bounce I’d be interested. I’ve played about with variation of the original TradeAlt 60% drop bot, and can’t find anything better. Btw 55% is to take good profit. Not break even.
Great tip on the DCA calculator site!! I find the Gainium DCA interface really cumbersome, but I do like the chart to show where the orders and break even is
With 6% deviation at start and a step scale smaller 1 and a volume scale bigger 1 you limit a little how much the maximum required change (before a DCA step) and the minimum required change (afterwards) to take profit increases. My ideas for the required change range and the geometric strategy also play with those max and min values and are focused to keep them in a certain range.
It would not be my chosen DCA strategy, but I wanted to come up with an example where you could capture up to ~60%, and still have a “reasonable” required change.
I would choose something else myself, because trying to capture a drop of up to 60% through DCA is rather much in my opinion. I prefer to prevent a coin from dipping that far by choosing the right starting conditions (but even that is no guarantee), but that is another story.
Yes i tried, if you try to mix up start conditoon with DCA bot it gonna miss out Bull market very much because it already have low base order and less fall down. And if you try to cover the gap of downfall and breakeven then cost of DCA increases which reduces the roi. Also start condition gonna met very few times when market roar. So getting a perfect DCA bot is difficult. The case with @remy1111 DCA bot is. It relies on pair selection to be in consistent profit. Which is good. His bot plays with volatility.
I put these settings in and compared results against Urma, and the net ROI is about half Urma. The test period was the last 73 days since BTC.D hit 60. I need to do a wider range, but struggling to find the time.
The bot is slightly more expensive (fine) and covers 54% drawdown not 60% (fine) but the ROI isn’t as enticing (not so good). It does do shorter deals though, and locks up less capital (so you can panic sell everything at less of a loss (great!)
Comparison of the backtests. 50 coins, 1 coin per deal, alphabetical selection, 3% TP, ASAP
In itself not bad results, and it is nice to see that the max deal duration is a lot lower. But those settings were really purely as an example; max $250 deposit per deal, roughly up to 60% capture with still a reasonable recovery.
I would never use DCA to go that deep, I prefer to catch up to about 20%, and if necessary manually add funds at later steps.
Yeah that’s fair. It’s a tall order but that’s the bot settings that TradeAlts YouTube channel and discord got me into bots. I dont pay for TradingView so can’t get hooks and signals. If you’re on a budget and want to bot, it’s tough to find an off the shelf set of settings that you don’t have to keep rescuing with more funds. Hence set and forget 60% coverage. And be disicued to pull out during bull run, just like I plan to DCA out of all but BTC during the bull run.
It’s been super slow last couple months. Occasional pumps of individual coins closed out old deals, but average performance is way too slow and expected when not in alt season. I’ve stopped all my bots (fully loaded DCA at 60%) and half my deals have closed out at 3% TP, so I will probably let them all eventually close and wait until this status changes…
(Luckily it’s just paper bot)
