revenuebot trades on the exchange with the funds available in your account. In its work, the bot uses the API interface of the exchanges to place orders according to the selected algorithm and tracks their execution. At the moment, there are two types algorithms for the bot:
A LONG Algorithm
The bot works in cycles and is based on the averaging principle (DCA). The bot buys the asset in parts when the price falls (the initial part of the cycle) and sells everything bought at a higher price, making a profit when the price rises (the final part of the cycle). The idea is that, with a certain amount of deposit at its disposition, the bot does not buy with the entire amount at once, but instead makes purchases in parts when the price falls, using a pre-calculated grid of safe orders.
Grid of safe orders
The grid of safe orders is calculated automatically based on the bot settings. The first buy order in the grid is the closest to the current price and the smallest in terms of volume. Each subsequent buy order is larger (the Martingale system is used) and at a lower price. Thus, when the price falls, the bot is averaged out and buys more and more, but at a lower price. This allows you to make the final profitable deal by selling everything you bought at a price lower than what the bot started buying at.
Placing orders on the exchange
Based on the volumes and prices of the calculated grid of orders, the bot places them on the exchange using the API interface.
Checking orders placed on the exchange
After placing a grid of orders on the exchange, the bot monitors their execution. When the price falls, the first buy order in the grid will be executed, which is closest to the current price. Noticing this, the bot will place a sell order on the exchange (the order volume will be the same as that of the just executed first buy order in the grid, and the profit will be included in the price). The bot will continue to monitor the execution of orders on the exchange. If the price falls further, the second buy order in the grid will be executed. Noticing this, the bot will cancel the current take-profit sell order and place a new one, which will contain the volume of two executed buy orders, its price will be lower than the price of the just canceled sell order (this is the advantage of averaging), but it will also contain a profit. Thus, the algorithm will continue until the price rises and a take-profit sell order is executed. Note that as the price falls and the primary buy orders are executed, the take-profit price of the sell order will also decrease (following the current price on the exchange), which will ultimately allow selling everything bought at a price lower than what they started to be bought at. We would also like to point out that the order that fixes the profit is always one, it contains the volume of all executed primary orders, and its price is the calculated average price of everything bought plus the profit.
Making a profit
When a take-profit order is executed for a sale, we end the cycle, the bot calculates the income, cancels the remaining safe orders active on the exchange, and starts a new cycle of work.
A SHORT algorithm
The principle of operation is similar to that of the LONG algorithm, based on the averaging principle (DCA). The bot sells the asset in parts when the price rises (the initial part of the cycle) and buys everything sold cheaper when the price falls (the final part of the cycle). Having a certain deposit, a bot does not sell for the entire amount at once, but in parts as the price rises, using a pre-calculated grid of safe orders.
Grid of safe orders
The grid of safe orders is calculated automatically based on the bot settings. The first buy order in the grid is the closest to the current price and the smallest in terms of volume. Each subsequent order to buy is larger (using the Martingale system) and at a higher price. Thus, as the price rises, the bot is averaged out by selling more and more, but for a higher price. This allows you to make the final profitable deal by buying everything sold at a price higher than the bot started selling.
Placing orders on the exchange
Based on the volumes and prices of the calculated grid of orders, the bot places them on the exchange using the API interface.
Checking orders placed on the exchange
After placing a grid of orders on the exchange, the bot monitors their execution. When the price rises, the first sell order in the grid will be executed, which is closest to the current price. Noticing this, the bot will place a buy order on the exchange (the order volume will be the same as that of the just executed first sell order in the grid, and the profit will be included in the price). The bot will continue to monitor the execution of orders on the exchange. If the price rises further, the second sell order in the grid will be executed. Noticing this, the bot will cancel the current take-profit buy order and place a new one, which will contain the volume of two executed sell orders, its price will be higher than the price of the just canceled buy order (this is the advantage of averaging), but it will also contain a profit. Thus, the algorithm will continue until the price drops and the take-profit buy order is executed. Note that as the price grows and the primary sell orders are executed, the take-profit price of the buy order will also increase (follow the current price on the exchange), which will ultimately make it possible to buy everything sold at a higher price than they started selling. We would also like to point out that the order that fixes the profit is always one, it contains the volume of all executed primary orders, and its price is the calculated average price of everything sold minus profit.
Making a profit
When a take-profit order is executed for a buy, we end the cycle, the bot calculates the income, cancels the remaining safe orders active on the exchange, and starts a new cycle of work.
You can find detailed information about the algorithms used for the bots’ work, and also examples of how to calculate safety nets in our Knowledge base.