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Author Topic: Improvment suggestion to minimize bagholdings  (Read 32882 times)

Offline Clannad

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Improvment suggestion to minimize bagholdings
« on: April 16, 2017, 10:47:08 PM »
Hi all :-) and Hi Gunthar :-)
First of all I want to say I really enjoy Gunbot and Gunthar's constant efforts to improve it !

Now from my experience and from what I read in the chat, the main problem remaining on Gunbot is when it buys at top price, leading to bag holdings for days (weeks... months...) before these alts recover

I have a suggestion for an option that would allow to minimize these situation
I already posted this idea twice on the Telegram group and it received very good feedback, but I'm sure many users missed it (sometimes hard to read 1000+ messages daily), and that's why I'm posting it here on the forum so everyone can see it and comment.

This options consists in an additional parameter that would be % of bolinger band where bot is allowed to buy
The bot would measure the distance between the lower and upper bolinger bands, and if the price is at a higher distance than set, the bot would not buy

We could set this parameter to 500% by default, with this setting the bot would behave exactly as it is doing now, and it would not bother  those who don't want to use this feature.

This would be an additional filter that would be applied just before the bot buys, so it would not change at all the actual gunbot strategy, but only prevent buying too close to upper Bolinger Band if the feature is activated.

For those who want to use the feature, they could set this parameter to 50% for example in which case the bot would buy only if Buy Price is below or at 50% distance from lower bolinger band to upper bolinger band. Depending on each coin behavior the parametre could be set to 10%, 0%, or even -10%

In the picture below for example, the parameter is set at 50% and the bot would be allowed to buy only in the yellow range (sorry the drawing was quickly made and not perfect).



For myself if this was implemented I would use it a lot and set it between 20%~30% I think, but that must be adjustable differently for each pair according to their recent behavior.

Quote
In Spring, 2010, John Bollinger introduced three new indicators based on Bollinger Bands. They are BBImpulse, which measures price change as a function of the bands; percent bandwidth (%b), which normalizes the width of the bands over time; and bandwidth delta, which quantifies the changing width of the bands.

%b (pronounced "percent b") is derived from the formula for Stochastics and shows where price is in relation to the bands. %b equals 1 at the upper band and 0 at the lower band

So basically if we call BBSetParam this new parameter, we would have something like:

Code: [Select]
if (AllOtherConditionsOk && (%b*100 <= BBSetParam))
BotCanBuy=TRUE;

(Note: someone on the Telegram group said that it is useless because we have EMA's, but this is wrong. Bolinger Bands are really a different indicators, and EMA's are useless in what I'd like to see, because EMA's always tend to follow the upper Bolinger Band during pumps, and the lower Bolinger Band during dumps.)

I would like to hear everyone's opinion about this suggestion
Thanks for reading :-)



« Last Edit: April 27, 2017, 01:04:09 AM by Clannad »

Offline Gunthar

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Re: Improvment suggestion to minimize bagholdings
« Reply #1 on: April 16, 2017, 11:01:21 PM »
Yes next version of polo-kraken-bittrex have bollinger band implemented.

Offline Clannad

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Re: Improvment suggestion to minimize bagholdings
« Reply #2 on: April 16, 2017, 11:06:04 PM »
Yes next version of polo-kraken-bittrex have bollinger band implemented.

Really Gunthar ? The way I describe it with a % parameter associated with each pair ?

Thanks, that's gonna be really awesome  :)
« Last Edit: April 16, 2017, 11:08:05 PM by Clannad »

Offline jroddingham

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Re: Improvment suggestion to minimize bagholdings
« Reply #3 on: April 19, 2017, 01:04:47 AM »
This is a really welcomed addition to the bot, can't wait to check out the implementation.

Offline soyab0007

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Re: Improvment suggestion to minimize bagholdings
« Reply #4 on: April 19, 2017, 07:42:10 AM »
I would give it a try with 30% .. even if it does 1 trade in 2 days.. i would be more happy


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Offline freelunch

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Re: Improvment suggestion to minimize bagholdings
« Reply #5 on: June 24, 2017, 04:42:29 AM »
I just searched for a website to do this manually but couldn't find one.

I think this would be a very powerful function directly implemented in Gunbot.

Offline magictrade

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Re: Improvment suggestion to minimize bagholdings
« Reply #6 on: June 26, 2017, 09:34:40 PM »