The volatility in the market prices makes a great environment for trading, with profit .
But, every now and then, the markets prices will crash even more than what we would consider a good price to buy.
How does Gunbot help in this case ?
Gunbot has implement a DOUBLE_UP function in all his strategies . The Double Up function will keep buying the same amount bought previous, if the prices keep falling .
In the end, the bought price will be averaged-down .
Let’s take a few examples :
BTC – EXT
Initial Buy Price : 0.00023341 BTC
Double-Up Buy Price : 0.00019986 BTC
Sell Price : 0.00022677 BTC
Profit : +0.0016537 BTC
BTC-BCH
Initial Buy Price : 0.20273586 BTC
Double-Up Buy Price : 0.16877091 BTC
Sell Price : 0.19410001 BTC
Profit : +0.00148769 BTC
DOUBLE_UP information from the Gunbot Wiki :
DOUBLE_UP | false | Values: true or false. When set to true, DOUBLE_UP will try to get rid of bags by averaging down. Works on all strategies. Averaging down can use up a lot of balance, make sure you have enough of your base currency available. Gunbot will start averaging down a bag according to your setting for DU_METHOD. |
DU_METHOD | HIGHBB | Values: HIGHBB or RSI. This sets the trigger for placing buy orders with Double Up. When set to HIGH_BB Gunbot will start averaging down a bag when the actual upper Bollinger Band drops below bought price (not the distance from it as set in HIGH_BB), and will then buy again when the upper Bollinger Band drops below the average buy price and the price is below last buy price, as set in DU_BUYDOWN. When set to RSI buy orders will only be placed when the set RSI_BUY_LEVEL is reached and the price is below last buy price, as set in DU_BUYDOWN. |
DOUBLE_UP_CAP | 1 | Values: numerical – represents a ratio. This defines the ratio to the pairs balance to be used for each consecutive buy when doubling up. Setting it to 0.5 would mean it uses a 0.5:1 ratio for averaging down. It is recommended to set this as high as you can afford, to increase your chance to actually average down and sell at profit. Example with ratio of 1: initial buy of 100 LTC, first double up buy order is 100 LTC, second will be 200 LTC, then 400 LTC, etc. Example with 0.5 ratio: initial buy of 100 LTC, first double up buy order is 50 LTC, then 75 LTC, then 112.5 LTC. |
DU_CAP_COUNT | 3 | Values: numerical – represents a number. Limits the amount of times a Double Up order can be placed for a pair. The default setting of 1 would limit Double Up to only 1 buy before it waits to sell. When you set this higher, the bot will invest more and will get a lower average bought price to get rid of your bags faster. |
DU_BUYDOWN | 2 | Values: numerical, ranging between 0 and 100 – represents a percentage. The minimum price drop compared to last bought price that needs to occur for Double Up buys to be placed. |
