Hey,
I’ve been talking around the community channels with some people who claim you lose money trading, mostly as takers. there’s one simple thing that you might miss while trading, is probably you don’t take into account fees.
if you do taker-taker you would pay fees twice one for the buy and another for the sell.
Simple example:
break even = buy.price*1.005
for example: buying BTC at 28000 as taker, break even as taker would be at 28140.
since maker have 0 fees:
taker-maker strategy means break even is at buy.price*1.0025.
for example: buying BTC at 28000 as taker, break even as maker would be at 28070.
So please remember don’t just execute bots with default settings, you don’t need to be master trader to set it up. think if you do taker-maker, taker-maker and set the settlement price according.
Another 1:
I set up my bot for DCA buying. In theory a really nice strategy: buy all the way down or up. This way the price at which you make a profit moves in the direction of the trend.
But what you will find is that the price fluctuations to make a little bit of profit will get bigger really fast. Example:
buy 50 BTC at 27000 , Sell at 27270 price difference = 270
buy an extra 50 BTC at 26973 , Sell total at 27.512,46 price difference = 539,46
buy an extra 50 BTC at 26.946 , Sell total at 27.754,41 price difference = 808,38
So in order to make a profit of 1,50 price needs to fluctuate more then 800 !
To Dampen this effect you can do a few things: Set a profit target that turns fixed after a preset step, play around with step size or put a multiplier on the ordersize.
Same example with ordersize multiplier:
buy 50 BTC at 27000 , Sell at 27270 price difference = 270
buy an extra 50 BTC at 26973 , Sell total at 27.487,94 price difference = 514,94
buy an extra 50 BTC at 26.946 , Sell total at 27.683,15 price difference = 737,12
So in order to make a profit of 1,66 price needs to fluctuate 737,12
Although still a big difference you can see the dampening effect.
This is where you see how important is to set up your bot correctly. Even with small order sizes and small percentage changes outcome can differ big time!
Luckily Dulaj added the order size multiplier in the last update of the cloud bot -> check it out!
I have found my sweet spot between volume and profit after a few days of trying.
buy 50 $ BTC at 27000 , Sell at 27270 price difference = 270
buy an extra 55 $ BTC at 26973 , Sell total at 27.487,94 price difference = 514,94
buy an extra 60,5 $ BTC at 26.946 , Sell total at 27.683,15 price difference = 737,12