A Reddit user has designed a trading robot to buy bitcoins on the price floor

A Reddit user recently developed a software robot that can buy bitcoins between 5 and 10 percent cheaper than the dollar cost averaging model, or DCA. The manufacturer of this robot has said that his model, unlike the usual method of averaging dollar costs, identifies the best possible price to enter the market.

To Report Kevin Telegraph: Given the relatively good uptrend in February, some traders are trying to push their investment according to market forecasting methods. Meanwhile, a trader named Samjhill on the Reddit social network has developed a software robot that uses a kind of DCA strategy, or dollar cost averaging, to buy bitcoins on the price floor; With the difference that the efficiency of his model is higher than the usual DCA.

In the DCA strategy, investors regularly buy the usually small amount of digital currency of their choice several times, regardless of price fluctuations. This strategy is the opposite of the strategy of traders who like to buy their desired digital currency at the lowest possible price and at the same time. These people try to identify the precious floors in the best possible way so that they do not catch the so-called “falling knife”.

Also read: What is a Trader Bot or Trader Bot?

Known as the “Buy the Dip Bot”, the robot seeks to find the best possible price to buy a particular asset using a limited order strategy. In the past, another Reddit social network user has suggested that traders use a limited manual ordering strategy to find the best buy price. But with the development of this idea, Sam Jahil has designed a robot that detects price floors and buys at those levels.

This robot registers limited purchase orders with several time intervals and at prices lower than the current price and then repeats its work by canceling or finalizing an order. The robot uses Amazon Web Services cloud infrastructure, Python programming language, Lambda, DynamoDB database and React.JS. The robot is hosted on GitHub and costs only $ 5 per month.

Although the software robot started operating in December, it was able to reach a new turning point on Monday. The turning point is that the robot is more profitable than the dollar cost averaging method. According to Sam, the profit per purchase of each bitcoin is currently between 5 and 10 percent higher than the conventional averaging method. This means that the robot can buy bitcoins 5 to 10% cheaper than the DCA model.

The robot uses a ackBacktesting Library to determine the best entry points for limited purchases. In general, it can be said that the poison robot performed a complex process well and finally achieved the desired result with very precise planning.

When asked if he recommended the robot as an alternative to the conventional DCA method, Sam replied:

For beginners, a typical DCA strategy may make more sense; Because their goal may be to accumulate as much digital currency as possible. However, more experienced people may already have some digital currency. The goal of these people is to minimize their cost base. These traders will probably make more profit by using this robot.

Sam himself first became acquainted with bitcoin in 2013. He says he uses the DCA strategy and the limited trading strategy together to create more balance.

This trading robot can currently only buy and sell bitcoins; But it can easily be adapted to other digital currencies. The Atrium section has been added to Sam GateHub, and he is trying to add the rest of the digital currencies to his robot.