Current Crypto Bot Strategy
This page is frequently updated and provides the most up to date information for current strategies to make bot trading with our signals as profitable as possible.
For those starting out with our signals:
We believe this is a good time to start our signals. Prices are low and there are many good buys to be had!
For signals subscribers following our strategy (#4 on the tips page):
Currently we have buy turned on and selling turned on
We've been trading sideways for the last week and if you had free cash the bot has been doing pretty well for you. Personally, I've been holding the majority of my assets because I am waiting for the rebound. I do not enjoy getting caught in a dip, but hey, it happens. when you do, you hold. If we trade at the correct times for half the dips, buying low and selling high, we are doing a good job. when you get caught in a dip like this it sucks, but don't let the market makers shake you out. Their game is to sell high and get as many retail investors to sell as possible. They do this with consecutive dips and controlling the media. When the media all says sell, you buy! When the media says buy, you take profits.
Update Two 5/24/2021
People using my signals: The last dip was actually several consecutive dips that kicked our ass. I am making a change right now to all templates to counteract this type of event. Feel free to update your template or just manually change the settings.
The following is written for people with 50 coins: Under Coins and Amounts, currently Percentage Buy Amount is 3% of account value. I will make this 0.5%. Under Buy Settings increase Max Percentage open positions per coin from 2 to 5. If we have a mega dip where every coin goes off, you will only have spent 25% of account value. Essentially this is dollar cost averaging through settings. If you want more steps you can lower the percentage buy amount even further and increase max percentage open positions. In addition, we should increase the cooldown period from 2 hours to 12 hours. For people with 15 coins: you can do 1.25% buy and 6 positions per coin.
Wow last week and weekend was tough. There were many new crypto traders who just got into the market and lost much of their investment. I hope you guys held! It was only paper losses that are already coming back up as long as you held your positions.
Situations like we just had are known as "whale games". Traders with lots of assets are called whales or market makers. With crypto trading, they often conspire together to sell high and buy low. By crashing the price and keeping it volatile, they convinced many new investors to sell and were able to buy back at lower prices.
With bot trading these kind of dips are not fun because it slows down our turnaround time. Hold on tight until we are profitable again though!
Max Pain Price for Friday 5/28 is now $50k. Let's hope we get there!
The recent dips are frustrating to many of us and caught us by surprise. General consensus is that many new investors bought when the market was quite high. The Elon tweets combined with inflation fears and random government scare tactics (such as China reiterating their policy on banned crypto trading) resulted in profit taking among active traders. This led to many new investors getting scared and selling at a loss.
With this kind of volatility, whether prices are increasing or decreasing, it is difficult to predict short term prices. It's really anyone's guess at this point. However, I do believe that crypto has excellent long term prospects and the lower it goes, the more you can profit from buying in. the selloff is temporary. Digital currencies and blockchain technology is here to stay.
I haven't posted an update in a few days because there has not been much to say. We have been at a slow grind and nothing special has happened other than a massive dip down to about $42k. We can thank inflation fears and Elon Musk for that. I am in the same position as before. Selling off, buying on and it's a good time to start signals. I'm maxed out and am 100% crypto in my account and I know most of you are too. I still believe prices will come up for month end before a big dip in June.
Buying has been turned off on the bot since the evening of 5/11. I am expecting BTC price to drop to a range between 45k and 48k. Some of this is due to Elon Musk's announcement that Tesla will no longer accept Bitcoin for transactions.
Some of my highest gaining positions had been sold, but unfortunately I didn't sell all. I will be holding all that I didn't sell (about 78% of my account value) and waiting for the next big rise. Unfortunately this may take another month.
I'm expecting prices to begin rising again on Monday, 5/17 until we hit max pain price (currently $56k) around 5/25 and holding steady until 5/30.
Allow Bot Buying and Selling Based on Trends
On your Cryptohopper dashboard there are switches to toggle on and off bot buying and selling. When Bitcoin price is high, we want to turn on selling and turn off buying. When Bitcoin price is low, we want to turn on selling and turn on buying. All cryptocurrencies trend with the price of Bitcoin, so it is the best singular currency to perform our trend analyses on.
Switching selling on does not mean your positions will immediately sell. Each position will sell in accordance with your trailing stop loss values. In the template we have the values set at 4% to arm trailing stop loss and when the crypto's price drops 2.5% from its peak your bot will sell.
The primary price data is based on Bitcoin being at or near the "Max Pain Price" on the last Fiday of every month for Bitcoin options expiration. This is the price that the maximum number of contract buyers will lose their money.
Below is our previous primary strategy. It is still viable and similar to Dollar Cost Averaging.
Reserving Funds Strategy: The fundamentals of this strategy are explained in detail here. To summarize, our primary strategy is to reserve funds as bitcoin increases in price. As bitcoin drops in price we release funds for our bot to use.
The below picture provides a good example for current price ranges to reserve funds. In a 3 step strategy, you could choose the two blue lines and the red or the two green lines and the red. Here I would choose the two green lines and look at what the price is at the current point in time. I marked these points with the red arrows and from bottom to top they are $56,700, $57,700 and $58,700. When BTC price is rising, you reserve funds when the price crosses over these lines. When BTC price is falling, you release funds when the price crosses under these lines. You do not need to be exact and if you look at BTC price a couple times a day and check your settings, you will experience a considerable increase in profits compared to an inactive user.
We suggest looking at the price of Bitcoin 2-3 times per day and possibly adjusting the your allocated funds based on this strategy. See picture below.
To reserve funds, go to Config -> Coins and Amounts. Set the "Maximum USD Amount Allocated". For example, if you have $10,000 in your account and you wish to reserve 30%, set this value to $7,000.
If viewing on a computer (sorry mobile users), use the chart below to look at different strategies and options. The left side panel holds the drawing tools and the 3rd button down is the pitchfork used in the above diagram.