jazzonaut / IntelliTrader

Intelligent Cryptocurrency Trading Bot

Home Page:http://intellitrader.io

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Enhancement: Bag Dilution

ShadowOnTheLand opened this issue · comments

So this will really add to an already powerful program.

Swapping coins out is very good, but it digs out of deep bags very slowly. If we added a bag dilution option/functionality this would really bring IT to an entirely different level.

The idea is to create a rule that will flag deep bags for dilution, this would be customizable. E.G. Age, DCA levels, Margin, and pretty much any other setting that you could want, would be acceptable.

For example The new action would be "Dilution" as opposed to "Swap". Once a bag is set for Dilution it moves "Logically" moves from the dashboard to the Dilution tab, now keep in mind you could also KEEP the pair in the dashboard and just have a "dilution" signal on it, it would keep potential over all updates on margin, and what not. But the trading on this pair would be suspended.

Now the bot needs to be able to look at the available balance and decide if it needs to sell off a small portion of the bag to have liquid assests to be able to work off small pieces of the bag, or if the available assets are already available. If it has to sell off a portion, it should keep track of the amount and margin it sells off the portion for. This can then be added back into the final piece of the bag so that you don't actually lose that capital.

The bot will then logically split off a percentage of the bag, and use the newly available assets to attempt to turn this smaller chunk into profit by aggressively DCAing it down (Again using whatever DCA rules that you, the user, decide to use I.E. it's customizable). Once that first "chunk" is cleared it will pave the way for other smaller chunks to be worked out.

Now I don't know if using swapping is possible, that's up to Jazzo to decide. However I do believe that combining what we have, with something like this would bring IT to a whole new level.

I'm gonna punch in some numbers here.

Bag A: Current margin is -35%, total cost is 0.05 btc,

Bot moves said bag to dilution tab. Once there the bot figures out that you have 0 funds available to use for dilution.

The bot then sells off 0.01 BTC of the bag to create a dilution fund (This is NOT usable by the bot EXCEPT for THIS purpose ONLY).

Now the bot takes 0.001 of the bag and starts trading/DCAing this small piece of the bag with the 0.01 that it freed up earlier. Once this smaller portion is broken off the bot uses a very aggressive positive price action dca strategy that can clear bags very, very quickly when used properly. perhaps it even is possible to use swaps in this dilution process to clear the bag even faster.

Once the bag is cleared the funds are used towards the next chunk of the bag, and this process continues until the bag is nearly completely sold. At some point, and I'm not sure when, you will need to roll that 0.01 back INTO the bag itself so you can work that out as well. But by that point the bag is already going to be mostly sold, so perhaps if you get to a point where all that's left is the 0.01 portion of the bag, that's worked out with the remaining balance of the "dilution bag", perhaps once you get to the 50% cleared portion that 0.01 can be moved back into the bag and the profit available is used to continue the process. This process continues until the bag is gone, and then the bot free's up the 0.05+ your profit back into the general funds for further investing. I don't know if this is gonna work or if it's feasable, I'm just spewing forth idea's.