Hey Lost Cowboy :)
After so many years, what did we do to ourselves :)
I build a bot to trade BTC on a crypto exchanges. I would love to have your opinion on some things. I remember some posts or replies on the internet, yeah, I follow you for years. :) You talked about the buy or sell in a AIM setup to follow synchrovest rules.
First I will share my setup: AIM HI = 80/20
I use 3.14% (Pi Number) I do not know why :) Just a feeling.
var btc_minimum_buy = financial_eur(+0.0314 * +btcValue_ask);
var btc_minimum_sell = financial_eur(+0.0314 * +btcValue_bid);
var btc_buy_advice = financial_eur(+portfolio_control_btc - +btcValue_ask);
var btc_sell_advice = financial_eur(+btcValue_bid - +portfolio_control_btc);
var btc_market_order_buy = financial_btc((+btc_buy_advice) - (+0.0314 * +btcValue_ask));
var btc_market_order_sell = financial_btc((+btc_sell_advice) - (+0.0314 * +btcValue_bid));
When Cash Balance > 20% -> Buy Market Order to skim to 20% (100% increase Portfolio Control).
As you can see, I do not follow BTC Values in the traditional sense. I read the order books. In crypto there can be a big chuck spread, sometimes 5% - 10% range. BTC is mostly around 0.25% - 0.50%. Transaction costs are 0.25%.
Through calculating and use the bid and ask values I can avoid the spreads and the LIFO Gains are 12.56% so the 0.50% transaction costs buy+sell are no big deal.
I also do not use market orders. Why would I, I use the order books, and only buy or sell LIMIT orders. Which are executed immediately.
I do check every second, not monthly :)
Somwhere on the interwebs I google your name once in a while, you were talking about using synchrovest in the buy and sell legs of aim. So I looked you up about synchrovest. I already know you are a synchrovest apostle :) So that made me think, If synchrovest is superior why not integrate it into AIM? And why only the BUY or SELL legs?
AIM is not tracking the average price, it uses an arbitrary portfolio control. I agree synchrovest is superior. But why stop with the buy or sell legs when searching for a way to integrate them.
What if you would use the average price/value as portfolio control? And use synchrovest formula for buying and selling? This would mean that our cash balance should have another function. It would have a drip function, like every midnight at 0.00 hour buy the minimum transaction amount using synchrovest rules, for my exchange the minimum transaction amount is 5 EURO but you can make that amount whatever you are comfortable with. Then as you somewhere stated you could also dump at 49-50% profits and rinse and repeat.
Regards,
J.