The operating principle of the bot at Long (for market growth)
The operating principle of bots is based on the averaging method. This strategy allows you to earn, even in a falling market, as in any case, a small upside to the collapsing currency to complete the transaction with a profit.
Averaging is the addition of positions (orders) when trading against the current trend. That means additional buying coins (refilling) when retention existing negative trades. Thus, open positions shall be averaged, and the trader expects that there will be a kickback or correction of the price movement.
Thus, the trader does not fix a loss when the price goes against him. He opens new deals in the direction of the first at a certain distance from each other.
Cryptocurrency bots allow you to set a grid of orders down to buy a cryptocurrency asset automatically, and automatically calculate a Take Profit order. This approach greatly simplifies the work of the trader and his calculations.
The principle of bot’s operation in LONG
Bots Cryptorg in Long (market growth) allow to increase the main crypto-currency pairs, for example, on Binance this BNB, BTC, ETH, USDT. For correct operation, you should have enough one of the coins on the exchange account. This coin must be free, haven’t been frozen in orders.
Consider the example of the BTC/ONT pair. In this pair we will increase the number of BTC having BTC on the account.
For example, we set up a bot with Take profit of 1 % and a Step of safety orders (SSO) of 1 %.
Bot buys 500 ONT coins at the price of 200 Satoshi (the first order)
Bot sets of 3 SO (safety order) down on the price:
198 Satoshi – Buy 500 ONT
196 Satoshi – Buy 500 ONT
194 Satoshi – Buy 500 ON
A sale order (Take profit) at the price of 202 Satoshi.
If the price rises, the bot closes the deal in plus at the price of 202 Satoshi and cancels the safety orders.
In case of loss of value, a safety order for the purchase of 500 ONT coins at the price of 198 Satoshi is triggered and the initial Take Profit at the price of 202 Satoshi moves slightly lower, for example, at 201 Satoshi.
Thus, averaging occurs, thereby we reduce the Take profit when each SO (safety order) is triggered. It significantly accumulates our amount of bought coins ONT.
When 7 SO is triggered we have already accumulated a value of 4000 coins (ONT) and on the price rebound up we close our trade with a profit.
When setting up bots, it is important to take into account the rules of money management and the number of safety orders. Just an important role is played by the correct choice of signals to enter the transaction. Read about this in the following FAQ articles.