Topic: Buy and Hold Robot for poloniex.com (Read 226 times)

Hello,

i have create a simple robot for buying crypto currencys at poloniex.com with using the API function from this broker.

The strategy is simple, you first open a trade in a coin and the robot does buy then always automaticly with using a algorythmus new positions ins this coin.

The idea behind this stratgey is to wait 1 - 2 years or how long it could take till the crypto currencys maybe make new highs, maybe in 1 - 2 years some coins make more then 1000% and then you can sell all the coins at the high.

This strategy can be trade also manually, but the robot can make it better then somebody hoe try it manually, because:

the robot can look to all coins at same time, when a coin goes for example 2% up or down then the robot buys a new position with for example 0.00011 bitcoin volume, this volume can be changed in the robot settings. If you try to trade this manually you would need to sit all the day at your PC to open new positions, thats why this robot can be helpfull if sombody want to trade such a buy and hold strategy.

Also you would miss some entrys if in some coins at the same time the price move for example 2 %, but because the robot is using the API for trading he can handle this work.

If i would not have create this robot i would not try to trade this strategy, but with the robot it is easy possible.

When the price go down the robot will buy new positions in that coin and also if the price go up, the only think that you must do is to deposit money into your account and wait till the markets maybe one days explode to the upside.

The robot have different settings, where you can define how much volume in bitcoins for one position will be used and there is a setting to limit the overall amount of positions in a coin.

In my example account i have make the settings to 0.00011 bitcoin for every new position and currently 50 position as maximum amount. If in this coin 50 $ 0.00011 bitcoin positions have been open then the robot would not open new positions in this coin, but you can change the limit and make it bigger. I am waitting currently till i have reach the 50 positions limit in my account for all coins then i can deposit again more money and let the robot to diversive the money into the coins.

The way how the robot is opening the position give you at the end a good average price. if you would buy directly for example for 1 bitcoin in volume a coin, and the price from this coin falls few days and weeks then you dont make so much profit like when the robot diversify this 1 bitcoin and buys always at all different prices a new psotion.

For example the price is now at 100 then the robot buys at the price of 100 one position with 0.00011 bitcoin, when the price go lower to 90 he buy again a position when the price go again up to 100 he buy again a new position then the price go to 110 and he buy again a position then the price go again down till 50 and he buy again always new positions at 50,60,70,55,80,90...

You can set the difference in percent how much the price must move till the robot buy a new position, this way like explained above you get a better average cost price for you complete capital. If you would buy directly at the price from 100 for 1 bitcoin a coin and the price goes lower to 50 for few weeks then you are all the time into loose but with the way how the robot buys he positions you have less loos when price goes down.

At the end when we are lucky and the crypto coins go much up then you have many positions open in this coin at many different prices and you can hopefully make a good profit.

That is the way how my buy and hold robot is working. I want to offer this robot for buying to everybody hoe have interest and want to trade the same strategy.

Here is a link where you can watch the live trading from my current account: http://easport.cc/poloniex_neue_ordner/watch_trading.php

My plan is to deposit every week or month new money into this account and the robot will buy then new coins for the money and if i have luck and the crypto coins go much up in few years then there can be done a good profit.

I have code this robot after looking to many different infos abouth crypto currencys trading strategys and it looks like this is the easyest and maybe most profitable strategy for crypto currencys.