There It Comes— Crypto Trading Bot Update August 5th, 2024
The fall I was anticipating just happened, and may not be over.
The fall I was anticipating just happened, and may not be over.
Awwww. Some of my friends and even some of my readers/youtube subscribers have reached out asking if I am ok.
Thank you for your concern!
Much appreciated!
I hope all of you are doing well and not stressed out (especially if you are running bots).
While I was planning for a price dip to happen at some point this fall, it’s hard to really prepare for when the dip hits so damn fast.
I woke up yesterday morning to all 4 of my Martingale trading bots being in the red by $500–2000.
This is after a month of being back in the green and profiting fairly well through July after a very weak June.
Boom bop beep boop — Crypto Trading Bot Update July 12, 2024
Going strong again after stopping a bot in the red.medium.com
I was also out of mobile range fishing when the first part of the dip happened.
I had squeezed my spread on my ETH bot just the day before, so it slammed hardest into the red when the dip happened within about a 48 hour period. Ouch.
This happened as a direct result of my decision to keep my squeezed spread while going fishing, knowing that if anything happened — I would not be able to respond.
That is kind of my fault.
Every mistake pushes me towards more disciplined actions.
One of those disciplines — I know damn well that if I am going to walk away and stop paying attention, I need to widen my active spread. Period.
I didn’t do that for my ETH bot this time.
And even if I did, I would still be out of range by about 5–10%, because I would like not have gone as wide as 20%, which is the size of the ETH price dip in the last few days.
Kind of a funny irony considering I just made this promo YouTube short for my Crypto Bot Beginner’s Guide.
I made a silly video after capturing some profit on my ETH bot, and then I turn my back for a couple of days and …..THE DIP happens.
I had already widened the spread on my BTC bot in the last few weeks after recent price fall action, but a 8% active range doesn’t keep my bot in range when the dip is 15%+
As a result, my BTC bot was only capturing $50 here and there every day or two, up until the dip. When the dip happened, it didn’t go nearly as far out of range as my ETH bot did.
I slammed stop on 2 of my bots, and I am waiting it out to start them back up when I can determine the new price floor.
I look at this as a semi-free fall price moment, so instead of trying to widen my range to handle anticipated price fall, I am going to wait for several days and see where the price is.
This time, I didn’t sell off — I just stopped the bots and held the crypto instead.
This isn’t my first price dip, and it won’t be my last. Impermanent loss is part of the territory.
Why did I not slam stop on my other 2 bots?
One of them is running a year-long parallel test.
Parallel Testing Crypto Trading Bot Strategies
Exploring Strategy Optimizationmedium.com
The other is my LTC bot, which is running a totally different super-wide spread.
LTC Bot is now out of range by about 10%, but we have arrived at the sweet spot and I’m happy that my position is maxxed out.
I have made a habit of buying LTC around $50–60, then setting my sell for $80–100.
This bot is an attempt to recreate that pattern, in a more automated fashion.
With my ultra-wide configuration, I have actually created my own Litecoin Moonbot, and I did this because Litecoin alternating between $50 and $100 has proven to be somewhat predictable, albeit a long-term buy/sell.
LTC price falling to $50–60 is exactly what I want to happen, and now I play the long game of waiting until the next bull cycle pushes LTC back up riding the coattails of BTC.
Beginner’s Guide to Crypto Trading Bots — Part 7— The Moon Bot
When Moon? When Lambo?medium.com
This is also a possible pivot moment for me too.
I am learning new bots and other strategies, and it might be time to attempt them.
A Martingale bot’s biggest weakness is bear movement happening too fast.
Beginner’s Guide to Crypto Trading Bots — Part 5— Martingale DCA Bots
Martingales are my bag, baby!medium.com
I had just turned the accumulating USDT I was going to use to start another bot into a “rolling reserve” to cover bills with during weaker months, and I’m sitting here staring at it thinking…. ya know…. maybe trying a re-coup strategy or starting another bot would be better than just spending through it to pay bills.
I just took a short day trading course, and the entry/exit plans and signals it outlined sound like they might work fairly well to re-coup faster in this sort of situation.
If it proves fruitful, I will share the method, and the course link!
Thank you to all who asked if I was ok!
I will sleep soundly even if my bots had to be closed for a few days while I hold the crypto bag — I run my primary bots on BTC, ETH, and LTC.
Unless there is a world-shaking crypto bleed-out event where the entire market goes the way of Dutch tulip bulbs*, I have little doubt these assets will re-coup. And in the meantime I boot up bots and test new things to re-coup.
Dutch Tulip Bulb Market Bubble
The Dutch tulip bulb market bubble (or tulip mania) was a period in the Dutch Golden Age during which contract prices…corporatefinanceinstitute.com
While the price is down, it’s a great time to DCA some more coins.
I don’t really post about it much — but outside of trading bots, I keep USDT and BNB on hand to buy up crypto / tokens cheap. I make regular purchases and just hold the asset.
(DCA is how people accumulate wealth)
Beginner’s Guide to Crypto Trading Bots — Part 4 —DCA Bots
Do Yourself a Solid with Dollar Cost Averaging!medium.com
I am eye-ing which assets to buy right now.
So even though there is a big dip underway……
Another way to look at it :
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Until next time….
Onward and Upward Everybody!
-Chris
Automated Income Lifesyle w/ C.W. Morton
I'm just a regular guy who automates everything I possibly can. ⭐ SUPPORT THIS CHANNEL…www.youtube.com
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