Beginner question - how to deal with initial bags?

[MagicDude4Eva]

Hi all,

I have just started using Gunbot XT via Binance and initially bought some coins at a high value. How can I configure a strategy, where I sell the coin higher at the initial purchase price and then continue trading?

Or should I just leave my current sell-limit-order in place and not worry about it?

[oldskoolnix]

In the wiki, they talk about this:   https://github.com/GuntharDeNiro/BTCT/wiki/Handling-bags


I still don't know enough about DOUBLE_UP to actually use it, (how often it buys, how to tweak params, etc...), so I usually do something similar manually.  e.g.

Say I bought 1000 XYZ coins at 2500 sat, and the price is now 1100 sat.  I had my STOP_LIMIT set too high so my bot didn't sell when XYZ dropped.

The chart looks like the price will go back up to around the 1900 sat range in the next day or so.

If I have the resources, I buy another 1000 XYZ at the new price (or lower). 

This reduces my average bought price to 1800 sat (or lower) , so, I change the bot params to sell all at this price or a little higher and wait.

Otherwise, I just sit and hodl.

[sloaleks]

Otherwise, I just sit and hodl.

this. it's the cheapest way. I disable buying on the sack and wait it out. sooner or later it will come close or maybe even over the bought price. except if the sack was bought on the end of a pump. then I just sell at loss.

[I_am_Amicus]

 +1 to Sloaleks, this mirrors my own experience and practice.

consider that you need to make a thousand fuck ups before you start to become an effective day trader. So trade small and with money you can afford to lose.

[yoshilee]

well, i wait for things to recover as well. I run things without double up, but i buy manual again, when price dropping is really hard.

[sloaleks]

I psychologically can't force myself to do like yoshi. I can't dump good money into something that has gone down. I can appreciate the math behind it, but for me, no. As it turns out, the less I meddle with the bot, the better of I come. There are some cases, in which I don't wait it out, but this happens seldom. For instance, I wasn't aware of the John MacAfee tweets, else I would have disabled RDD on the day. So, the bot bought near an ATH. As soon I realized it, I sold, at loss. I thought of averaging it down at first, but good thing I didn't, this one plummeted into oblivion. It would have eaten all my capital up just to sell a a lesser loss.

[tblim]

I agree with the advantages that you mention. However, in my opinion there is a significant drawback in holding losing pairs.

You indefinitely withholding trading opportunities on that pair, that could potentially yield profits. The key point here is the time-frame; you can't possibly know when the price will recover, if ever! Furthermore, if you are on a market with few pairs available to trade, then you are left with even fewer!

[sloaleks]

Lately, to avoid the things you mentioned, I got a bit picky in my pairs selection. So, I can say, even the worse bags cleared within 2 or 3 days. With the exception when RDD got pumped by the J. MacAffee tweet a couple of days back. Maybe I'll put RDD again on my watch list, when the thing settles. But if I get cought, for example with todays DGB buy, I am not worried, as it is generally a good coin and it will recover. I think if you can spot coins peaking strongly, and disable them in the right time, you've got a sound portfolio for gunbotting. But occasional bags always will happen. I can't find a right way to fend them off. If I use RSI with my strat, the buying process will grind to a sluggish behaviour, and I don't particularly care for that.

[yoshilee]

Yes, doing rebuys doesīt feel good, thatīs true. On the other hand i picked my pairs mostly out of the top 40 in market cap. and running a rather conservative entry strategy.
So fortunately it doesīt happen that offer.
But as mentioned above counts for me as well. Best thing if i am able to forget the bot and just let him work.

[Warlord711]

I would never sell with losses, I would keep them. Double Up seems legit, but gives a bad taste of burned money.
You do have to take math on it.

At the start of me trading cryptos, I did panic sell even on lowest price drops so I took micro-losses first, gladly never lose any money that I cannot afford.
Also I am a noob on trading but with some lucky pairs, I was able to get from 1500$ invest in September to 25k $ today.

Gunthy can play with ~0.4 BTC, while the mayority of my crypto is stored offline. I can see a slow but steady rise on my trades so I keep the bot running while reading and try to learn more about crypto in the next weeks.