After seeing @sovereignorigin #superhodl algorithm, I wanted to see if I could make my own simple algorithm to use the potential of @SovrynBTC Zero protocol.
The aim is to end up with more #bitcoin
Using historical data from jan 2016, you would make 1 BTC into 2.55 BTC.
The aim is to end up with more #bitcoin
Using historical data from jan 2016, you would make 1 BTC into 2.55 BTC.
The algorithm is so simple, you can just do it by hand and take action when the price reach a level up/down.
1. You would start out taking a loan with Zero up to 140% value-to-loan (VTL).
1. You would start out taking a loan with Zero up to 140% value-to-loan (VTL).
As an example, if you started today with 1 BTC, you would take 38660/1.4 = 27614 USD in loan. You would then buy more BTC for this.
2. When the price reaches 23% above the buy price (38660*1.23=47551 USD), you would take up more in loan, and rebalance the loan to 140% VTL.
2. When the price reaches 23% above the buy price (38660*1.23=47551 USD), you would take up more in loan, and rebalance the loan to 140% VTL.
3. If the price goes down to the point your VTL is 130%, you would sell some BTC and repay part of the loan. Again rebalance to 140% VTL.
And that's it! Each time you buy more BTC, you find the next price point where you will buy more.
And that's it! Each time you buy more BTC, you find the next price point where you will buy more.
From jan 2016 to mar 2022, you would end up buying more BTC 22 times, and selling some 30 times.
I have anticipated a 3% one time fee when taking out more loan, and 3000sat transaction cost for each time you either buy or sell BTC.
I have anticipated a 3% one time fee when taking out more loan, and 3000sat transaction cost for each time you either buy or sell BTC.
I have played around with a lot of different variables, and ending up with these numbers. You can make the plan more safe or more daring according to taste.
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