What is Anderson-DCA ?

Anderson-DCA was an idea by a team member called (yea Anderson..lol) that was implemented in the early days of ProfitTrailer.
The idea was that you could do a few doubledowns using different triggers each time to try to get out of a “bad” position faster instead of using an indicator.
Anderson-DCA uses a specific % to trigger a doubledown based on your settings.

So how does ANDERSON-DCA Strategy works?

You first need to setup your tier triggers, you can list as many as you want. We will use the following as an example for DCA.properties configuration:

####################### DCA.properties ############################
################### ANDERSON-DCA EXAMPLE ##########################
###################################################################
### Below you will find an example of the Anderson DCA Settings ###
### Please remember, this is just an example and you should do  ###
### your on research and set the appropriate triggers values    ###
###################################################################
###################################################################
 
max_cost = 0
min_buy_balance = 0
min_buy_balance_percentage = 10
max_buy_times = 5
 
buy_strategy = ANDERSON
buy_style = DOUBLEDOWN
 
buy_available_volume_trigger = 150
 
buy_trigger_1 = -3.5
buy_trigger_2 = -4.5
buy_trigger_3 = -6.5
buy_trigger_4 = -9.5
buy_trigger_5 = -12.5
 
 
sell_strategy = GAIN
sell_value = 1
sell_trigger = 1
 
max_buy_spread = 2
 
trailing_profit = 0.25
trailing_buy = 0.3
 
ignore_sell_only_mode = false
stop_loss_trigger = 0
pending_order_wait_time = 0

We will use BTC-QTUM for this example

Let's say our bot purchased 0.36458333 units of QTUM at a price of 0.00192000 and the price starts to fall.
Once the price falls below -3.5% (0.00185280), it will hit our first trigger as defined above and we will double our units. Since we have 0.36458333 units of QTUM, the bot proceeds and buy another 0.36458333 units at the current price.
Let's say the price is currently 0.00185280.
After this purchase goes thru, we will have 0.72916666 units of QTUM
Average Buy price 0.00188640

For trigger 2 to kick in, the price would have to drop -4.5% (0.00180151) of our latest average price buy (0.00188640)
The bot again will double our units. Since we have 0.72916666 units of QTUM, the bot will proceed and buy another 0.72916666 units at the current price
Let's say the price is currently 0.00180151
After this purchase goes thru, we will have 1.45833332 units of QTUM
Average Buy price 0.00184396

For trigger 3 to kick in, the price would have to drop -6.5% (0.00176098) of our latest average price buy (0.00184396)
The bot again will double our units. Since we have 1.45833332 units of QTUM, the bot will proceed and buy another 1.45833332 units at the current price. Let's say the price is currently 0.00176098
After this purchase goes thru, we will have 2.91666664 units of QTUM.
Average Buy price 0.00180247

For trigger 4 to kick in, the price would have to drop -9.5% (0.00170333) of our latest average price (0.00180247)
The bot again will double our units. Since we have 2.91666664 units of QTUM, the bot will proceed and buy another 2.91666664 units at the current price.
Let's say the price is currently 0.00170333
After this purchase goes thru, we will have 5.83333328 units of QTUM
Average Buy price 0.00175290

For trigger 5 to kick in, the price would have to drop -12.5% (0.00165649) of our latest average price (0.00175290)
The bot again will double our units. Since we have 5.83333328 units of QTUM, the bot will proceed and buy another 5.83333328 units at the current price.
Let's say the price is currently 0.00165649
After this purchase goes thru, we will have 11.66666656 units of QTUM
Average Buy price 0.00170469

If the pair does 5 DCA buys, it means that the original price we bought 0.00192000 has fallen around 14% since we bought.
If we hadn’t done any DCA buy, we would have to wait for this pair to gain those 14% back in order to break even, that might take a long time.

While with DCA, our new average price would be 0.00170469, that means that with a little spike in price 3-4% we would be able to sell our bag.

WARNING

To use DCA, you have to adjust your initial ALL_max_cost on PAIRS.properties Use a low max_cost value!

  • anderson_dca.txt
  • Last modified: 3 months ago
  • by sgtbatten