In the past trading week from December 9 to 15, 2024, my automated Buy The Dip Trading Bot successfully passed its first live trading test. Against the backdrop of a dynamic market phase – characterized by Bitcoin’s breakthrough of the $100,000 mark and the start of the altcoin season – I would like to analyze the trading results of the week.
Trading bot strategy and configuration
The bot is based on a clear buy-the-dip concept: starting from a swing high, percentage price drops are defined as buy signals. The standard configuration provides for the following entries:
- Buy Level 1 at -40% of the swing high
- Buy Level 2 at -50% of the swing high
- Buy Level 3 at -60% of the swing high
In view of the current bullish trend in the market, I have adjusted the parameters for certain assets, such as Ripple (XRP). For XRP, the first buy level was set at -30%, as technical analysis showed a potential support area here.
First successful live trade with XRP
On December 10, this adjustment was confirmed by a successful trade. After reaching the first buy level at -30%, the bot automatically placed a trailing stop buy order, which enabled an entry at $2.03. Despite a further 7% fall in the price to $1.90, the strategy remained valid. The trade reached the first sell target after about 10 hours with a profit of 20.93%.
Completed trades appear in the trade history
This is an excerpt from the trade history. All completed trades are then displayed here. This makes the XRP trade the first ever closed trade. The date in the “Sell Date” field appears to be configured incorrectly. Instead of 21.1.2024 it should say 11.12.2024.
Here is a screenshot from the order book on Bitfinex:
Ongoing DASH trade demonstrates multi-level strategy
A trade in DASH is currently running in parallel, which illustrates the bot’s multi-stage buying strategy. After an initial entry at $50, a second position was built up at $44 in line with the configuration. This trade remains open for observation.
Once again, my personal assessment of the price trend proved to be an absolute weak point. While the price fell by exactly 40.20% from the last swing high of $71, my manually set buy level 1 limit of 30% (yellow line on the chart) was reached far too early. Only the Buy Level 2 started at just under 40%, as envisaged by the actual strategy, and gave me a nice entry at $44 per share.
Technical observation
The first week of live operation provided valuable data for the further optimization of the system. In particular, the adaptability of the buy level parameters to different market phases proved to be advantageous. The automated execution of trades was carried out precisely according to the defined rules.
Interested in accessing the Trading Bot Dashboard? Click here for your own account.