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Added Uniswap coin. I have been trading with UNI, BTC and BNB and now only BTC and UNI so far. I’m looking to add back ETH and BNB soon.
Let’s see some examples of CT in action:
In the first yellow rectagle ww can see a very good move:
1- CT starts in DCA 4, and it sells 50% of DCA 4 amount with profit. Then, using the 50% amount sold, it buys again at slighly better price and sells it with profit again. Once again it buys again at slighly better price and sells it with profit. Finally it buys again that 50%. Summarizing, it made 3 profitable trades and improved DCA 4 purchase as it bought 50% at a better price that the original buy.
2- In the second rectable we can see CT in action again. It sells with profit (only taking latest DCA into account, of course) and buys at simular price again.
Then it keeps doing more profitable trades instead of waiting for the price to correct.
In the pic above, in the first yellow rectangle, we can see CT making a profitable trade. In the second rectangle it buys again using the amount sold (50% of latest DCA), and sells again with profit and buys again with slightly better price. As you can see it keeps DCAing and getting slightly profitable trades that helps lowering the BE point
Until now we have seen positive effects of running CT, but is there any negative effect. Yes, there is, and the orange rectangle you can see in the pic above can help us to explain it. Ok, suppose you buy a coin for 300$, then you buy it for 200$ and finally you buy it for 100$. The average price in this case is 200. Now let’s suppose we sold 50% of of latest purchase for 110. It is a partial profit (taking into account only the 100$ purchase). In this scenario our Break Even point is higher than it was before appying CT. Why? Because now we have a purchase for 300, other one for 200 and 50% purchase for 100. In other words, our BE point is worse because we have got rid of 50% of the coins we purchased with cheapest price.
I made the numbers in one case and it needed 3 CT sells to improve “normal” BE point with no CT. Obviously this could vary, and depending on the trades, it could be 2 or 4 trades the amount needed to “compensate”.
Getting back to the latest image, CT made 2 trades and BE point was slightly higher that the original BE, so it wasn’t able to sell, get rid of the bag, and start a new cycle.
So, under some circumstances CT is better, but in cases like CT making 1 trade and then raising again, could lead to the bot not being able to average down so fast.
In my opinion, overall positive effects are higher than negative effects, so I keep running CT. On another note, it can be configured. By default value is 0.5, and this means that if CT starts, and you set it to 0,5 the bot will use 50% of the latest DCA sell, and in the case you set it to 0.8, it will use 80% of latest DCA.
Seeing that BNB reached to it’s all-time high and ETH was close to it, I decided to pause those pairs for a while and decide later what to do. So far I changed TL from 100 to 300 (assigning all the funds to BTC). I would like to add them back soon as they are more volatile than BTC and volatility is usually tied to profitability when running this strategy. It’s just I’m not a big fan of buying something while it’s in his all-time high price.
This said, let’s take a look at Binance PNL:
Now it’s possible to upload the pic directly from our computer instead of putting the url of the pic.
Just click on the button you can see in the image above and choose the pic you want to post from your hard disk. I hope this makes things easier.
The following image shows the PNL of the last 30 days while testing one of the 1.0 variantions and one of the 2.0 variantions of SG Mutation:
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