How does it work?
Imagine that Bitcoin costs $20000 and you have 0.1 Bitcoin worth $2000. Your goal is to maintain its dollar value regardless of which way the Bitcoin price moves. You have also some free cash available on the side pile to be ready buying in case the price goes lower. Let’s assume that the price will move and go back to the initial price so we can easily evaluate the results.
See the following examples. In the first case, the price drops to $19000 and then bounces back. In the second case, the price rises to $21000 and then falls back.
| BTC price | BTC amount | BTC value in $ | cash | buy/sell |
|---|---|---|---|---|
| 20000 | 0.1000 | 2000 | 2000.00 | 0.00 |
| 19500 | 0.1026 | 2000 | 1950.00 | -50.00 |
| 19000 | 0.1053 | 2000 | 1898.72 | -51.28 |
| 19500 | 0.1026 | 2000 | 1951.35 | 52.63 |
| 20000 | 0.1000 | 2000 | 2002.63 | 51.28 |
| BTC price | BTC amount | BTC value in $ | cash | buy/sell |
|---|---|---|---|---|
| 20000 | 0.1000 | 2000 | 2000.00 | 0.00 |
| 20500 | 0.0976 | 2000 | 2050.00 | 50.00 |
| 21000 | 0.0952 | 2000 | 2098.78 | 48.78 |
| 20500 | 0.0976 | 2000 | 2051.16 | -47.62 |
| 20000 | 0.1000 | 2000 | 2002.38 | -48.78 |
As you can see, we basically don’t care which way the market price goes. We have around $2.50 more than we started with the help of just four transactions in both cases. So now, we have an algorithm ensuring that our total portfolio will keep growing under all circumstances and you fully understand the principle how it works.
Before you start, you need the account on some of the supported exchanges (use these registration links to have some discounts and other advantages).
When you have your exchange account ready with some money for autotrading you should create the API access for the Smart bot. This access is defined by the API key and the API secret. When you have these values, just register or login into the Smart Bot and copy it into the appropriate fields of the bot settings. After you adjust some other bot settings, you can activate the bot and enjoy its work.