Dollar-Cost Averaging (DCA) is an investment strategy that consists in purchasing an asset periodically on a long term period. Because of the high volatility of cryptocurrency DCA is a great plan to increase your crypto assets.
This script uses the Exchange Kraken. It is configured to put a buy trade at the pair bid price minus a percentage in order to enjoy the lowest fee possible (maker fee).
In addition the script will put a certain number of buy trades (according to the quantity and remaining fiat reserve) at lower price to capture any fat finger trades.
The trade's distribution follow a function (10^x-1)/9 (https://www.desmos.com/calculator/tqckgq4ymf) which distributes trades to have the best possible gains.
Based on Kraken API
- Install node.js
- Install kraken-api:
npm install kraken-api
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Configure the user settings
- Kraken Key and Secret
- Percentage
- quantity
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To setup DCA use crontab. Example of launching script everyday at midnight:
0 0 * * * /usr/bin/node $DIRECTORY/dca_kraken.js >> $DIRECTORY/dca_kraken.log 2>&1