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The HODL2.0 strategy

Our first bot is called HODL 2.0, it is a combination of well know bot strategies such as Grid and DCA… together with a few other ideas like; Never sell in loss, Never buy the top (optional) and HODL (Hold On for Dear Life).

The Story

We’ve been looking for a way to increase our balance without to much risk for quite some time now, and we believe we have finally found it!

The idea is pretty simple, and you should only be asking yourself one question;
Which cryptocurrencies do I believe in for the long term, which cryptocurrencies are or would be in my HODL portfolio anyway, regardless of the market’s state? Those cryptocurrencies are the exact ones you should be trading with the HODL 2.0 bot.

You should only configure cryptocurrency markets you believe in, because then you don’t mind holding this cryptocurrency in your portfolio if the market turns bearish.
HODLing trades in loss would be exactly the same as directly adding it to your HODL portfolio and wait for the price to rise, but then without the possibility to increase its value. Therefore, we do not use stoploss to accept losses, instead we embrace them and wait for the bot to sell in profit when it can.

How does it work?

HODL 2.0 bot scans the market and compares it’s current price against the 24h high (buy) or 24h low (sell). If the current price is [Open Perc] below the 24h high (buy) or above the 24h low (sell) it will proceed buying (buy) or selling (sell) it’s first portion [Trade Value].
Afterwards it will immediately create an opposing order [Close Perc] away from the buy price. From here, 2 scenario’s can happen:

  • The opposing order gets filled.
    The first profit is made, the bot will reset and compare the current price against the 24h high/low and wait for new trade opportunities.
  • The price moves [Open Perc] away from the open price.
    The bot will buy/sell another portion [Trade Value] and afterwards create an opposing order [Close Perc] away from the latest open price. This process is repeated as much as possible up to the configured [Max Trades] value. Which means, the more you can move along with the price, the longer your bot can hold a trend and make profits along the way.

Another configurable options is the [Cooldown]. This option reset’s the compare price from the last (if any) open order price, to the 24h high/low which can help a bot stuck in a certain price area for too long during a sideways market.

Important tips & tricks:

  • Required balance = (bot_count * max_trades) * trade_value
  • Do not invest all your funds at once, make sure to keep a portion of your USD value at hand, so you can (optionally) deposit extra funds after the price has significantly dropped. After this deposit the bot can do its magic at a lower level and eventually come back up again (Because we believe in the currencies we choose to trade with, and we do not mind HODLing them for a while).
  • You may change the bot’s settings along the way, changes will affect all NEW steps the bot takes.
  • Spread your risk across multiple markets, instead of just one.

Enjoy!

Updated on October 2, 2021

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