Understanding the Combo bot

The dynamic and fast-paced world of cryptocurrency trading often calls for an intricate blend of strategies to optimize profits and mitigate losses. At Gainium, we strive to provide our users with the most innovative and sophisticated tools to help them navigate this ever-evolving landscape. Our latest addition, the Combo Bot, is a testament to this commitment. It effectively fuses Dollar-Cost Averaging (DCA) and grid trading tactics into one powerful tool, allowing for more nuanced trading and increased potential for gains.

Understanding Combo Bots

Our Combo Bot is an intricate tool that primarily behaves like a DCA bot but introduces a unique twist to its operations - it establishes a series of 'minigrids' with each DCA order, rather than liquidating all assets at once. This approach harnesses the power of grid trading and DCA strategies, offering our users an innovative way to trade cryptocurrency.

In essence, a minigrid is a pre-defined trading range created by the Combo Bot whenever a DCA order is executed. Instead of selling the entire base at once, the bot establishes a grid within this range, utilizing the assets acquired through the DCA order.

How Combo Bots Operate

When operating in 'long bot' mode, the Combo Bot uses each completed DCA order to expand the grid downwards. It's important to note that this expansion occurs using the purchased base. The minigrid remains active until the asset's price surpasses the upper boundary of the minigrid. Once the price crosses this threshold, the minigrid is considered 'closed', and all associated grid orders are removed.

A short combo bot uses the same logic with a short strategy. At the start, the bot sells base asset and uses that quote to set a minigrid. If the prices continues to rise and hits a DCA level, the bot will sell more base and set up another minigrid on top, effectively expanding the overall grid upwards with each DCA. When the price crosses under the lower boundary of the minigrid, it is considered closed and the grid orders associated to it are removed.

Once all active minigrids are closed the Combo Bot enters a waiting phase. During this time, the bot does not initiate new trades. It instead waits for a new deal start condition, which triggers the creation of the next minigrid. The combo bot support all DCA deal start conditions (ASAP, Technical Indicators, Time-based and Webhooks) giving you great flexibility to time the perfect entry.

Configuring your Combo bot

As mentioned earlier, the combo bot operates in a similar fashion to a DCA bot, hence most settings are the same. There are, however, a few points worth noting:

• The order step in a DCA bot is the price offset to place DCA orders. In the combo bot, this defines the minigrid price range. For example, if you set the order step to 5%, all minigrids will have a 5% price range, and they will be stacked in 5% price decrements (for long) or increments (for short).
• The minigrid levels control the number of grid lines that each minigrid will have. As the minigrid range is defined by the order step, the higher the order step the more minigrid lines you can fit.
• The minimum DCA order amount depends on the number of minigrids, and it's calculated as minigrids levels * exchange minimum order. For example, if you are trading on Binance (minimum order $10) and have 5 minigrid levels, the minimum DCA order is $50.
• The Take Profit and Stop Loss sections operate the same way than using Take Profit and Stop Loss by ROI % in the grid bot. The combo bot uses the maximum deal value to calculate this ROI. Unlike the DCA bot, where Take Profit needs to be set for the bot to close the deal, the combo bot does not need it because the minigrid will be closed when the price crosses the upper bound (for longs) or lower bound (for shorts). You can, however, turn it on, and the combo bot will close all minigrids in current deal when the ROI is reached. For example, if the maximum deal value is $100 and Take profit 5%, once the bot current value reaches $105 it will close all minigrids related to current deal and wait for the deal start condition to start the next one.
• A deal is a collection of minigrids. Hence, a deal is considered open for as long as a minigrid associated to it is still open.

Conclusion

Gainium's Combo Bot blends the best of DCA and grid trading strategies, providing our users with a powerful tool to navigate the volatile crypto markets. With this innovative feature, you can not only automate your trading strategy but also optimize it to leverage market fluctuations effectively.

As with any trading strategy, it is essential to understand your risk tolerance and investment goals before using the Combo Bot. Gainium is here to provide you with the tools you need, but the strategy is ultimately up to you. Happy trading!