A Reddit user recently developed a software robot that can buy bitcoins between 5 and 10 percent cheaper than the dollar or DCA averaging model. The manufacturer of this robot said that its model, unlike the usual method of averaging costs in dollars, identifies the best possible price to enter the market.
According to the Kevin Telegraph, due to the relatively good upward trend in February, some traders are trying to increase their investments based on market forecasting methods. Meanwhile, a trader named Samjhill on the social network Reddit has developed a software robot that uses a kind of strategy for DCA or averaging costs in dollars to buy bitcoins at the bottom of the price; With the difference that the efficiency of his model is higher than the usual DCA.
In the DCA strategy, investors regularly buy a small amount of digital currency of their choice several times, despite price fluctuations. This strategy is the opposite of the strategy of traders who like to buy their desired digital currency at the lowest possible price and at the same time. These people try to identify the precious floors in the best possible way so as not to catch the so-called “falling knife”.
Read also: What is a Trader Bot or Trader Bot?
Known as the “Buy Dip Bot”, the robot strives to find the best possible price for buying a particular asset using a limited order strategy. In the past, another Reddit user suggested that retailers use a limited manual ordering strategy to find the best price to buy. But with the development of this idea, Sam Jahil has designed a robot that finds price floors and buys at these levels.
This robot registers limited purchase orders with several time intervals and at prices lower than the current price and then repeats its work by canceling or finalizing an order. The robot uses the cloud infrastructure of Amazon Web Services, Python, Lambda, DynamoDB and React.JS. The robot is hosted on GitHub and costs only $ 5 a month.
Although the software robot began operating in December, it managed to reach a new turning point on Monday. The turning point is that the robot is more profitable than the method of averaging costs in dollars. According to Sam, the profit from buying each bitcoin is currently between 5 and 10 percent higher than the conventional averaging method. This means that the robot can buy bitcoins 5 to 10% cheaper than the DCA model.
The robot uses the ackBacktesting library to determine the best entry points for restricted purchases. In general, it can be said that the poisonous robot performed a well-complex process and finally achieved the desired result with very precise planning.
Asked if he recommended the robot as an alternative to the conventional DCA method, Sam replied:
For starters, a typical DCA strategy may make more sense; Because their goal is probably to accumulate as much digital currency as possible. However, more experienced people may already have some digital currency. The goal of these people is to minimize their cost base. These traders are likely to make more profit by using this robot.
Sam first became acquainted with bitcoin in 2013. He says he is using the DCA strategy and the limited trading strategy together to create more balance.
Currently, this trading robot can only buy and sell bitcoins, but can be easily compatible with other digital currencies. The Atrium section has been added to Sam GateHub and he is trying to add other digital currencies to his robot.
The publication Reddit user has designed a trading robot to buy bitcoins at the lowest price appeared for the first time in Digital Currency.