Trader Develops a ‘Buy the Dip’ Bitcoin Bot

The Reddit user that developed the buy the dip bot which has outperformed the Bitcoin (BTC) DCA by 10%, recommends it be used depending on the user’s trading journey. Traders are actively seeking to lock in profits as a bullish atmosphere unfolds in February. On Reddit, a clever trader known as u/Samjhill has created a trading program that surpasses the Bitcoin (BTC) DCA — dollar-cost averaging for the acquisition of the biggest cryptocurrency. DCA is a method in which traders buy a small portion of their chosen investment on a regular basis, despite price changes. It operates in opposition to traders who are focused on getting the best entry price as well as near-perfect prediction of the dip timing. The bot dubbed “Buy the Dip Bot” is created to find the ideal price for a chosen asset through limit strategy utilization. While another Reddit user opted for a manual limit-buy-order strategy in order to find the best price, the creator of the bot took it up a notch and decided to code an automated bot focused on doing just that. What the bot does exactly is that it puts limit orders at many levels under the price, and it repeats the process if an order is completed or revoked. The developer made sure that the running cost would be no higher than around $5 monthly, by utilizing the technology from Lambda, React.JS, Python, Amazon Web Services, and DynamoDB, all stored on GitHub. The bot, which has been working since December, reached a major breakthrough on February 7. While the bot reached profitability outperforming DCA, Sam confirmed that “the price-per-coin advantage is about (cheaper) 5%–10% right now, which you could also think of as getting that much more coin for your money.” To determine the optimal entry locations for limit buys, the bot uses backtesting packages. A lengthy procedure that paid dividends in the form of a strategy that secures earnings. Sam made the distinction between when traders should use the run-of-the-mill DCA or the bot, by suggesting that “for people just starting out, regular DCA probably makes more sense since your goal is probably to stack as many coins as possible. For those later in their journey, they might have a decent stack already and want to minimize increasing their cost basis and so might benefit more from this.” Sam himself is utilizing both DCA and the Bot in order to have all the indications at his disposal before acquiring Bitcoin (BTC), which he has been familiar with since 2013. While the trading bot is now Bitcoin (BTC) exclusive, Sam designed the mechanism to be successfully incorporated with other cryptocurrencies. On the GitHub page, Ethereum (ETH) is mentioned, and Sam suggests that other coins may be added in the future. https://crypto-academy.org/trader-develops-a-buy-the-dip-bitcoin-bot/?feed_id=2073

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