Question: How is the size of a purchased pocket determined?
Answer: The trader buys a new pocket with a percentage of the available USD budget. This percentage is dynamic and dependent on market conditions. The percentage can vary between a little more than 0% and a maximum of 25%.
If the price has dropped only a little and there is a new good buying moment, the pocket will be smaller. This prevents the available USD purchase budget from being drained in a slowly declining market.
Further the pocket will be bigger after a large price dip in combination with a good buying moment. The results in greater returns.
Question: What is the minimum deposit amount in USD at Bitstamp?
Answer:In order to get a good return we recommend to start with at least $ 1000, -. On the one hand, this has to do with the fact that on average you can expect a nice profit profit per month (4% of the deposit) and on the other hand that you still have enough USD in a deep dip to be able to continue to buy pockets. In a dip, the pockets keep getting smaller because they are a percentage of the available USD budget. The smallest pocket is $ 5 because the minimum trade at Bitstamp is $ 5.
Question:I want to get money out of the cryptotrader. Is that possible and if so, how does that work?
Answer: It is always possible to withdraw USD dollars from the trader (for example, to skim your winnings). Crypotrader will automatically detect this and the next purchase will have an effect on the size of the purchased pocket. The Trader always buys in with a percentage of available USD budget.
You do this by going to your own Bitstamp account. Then choose withdrawal -> EU bank SEPA -> account balance USD
Warning: it is unwise to remove Bitcoins from your account because then you are going to make a loss. After all, if the Bitcoins would make enough profit, they would already have been sold.
Question: I would like to deposit money in the cryptotrader. Is that possible and if so, how does that work?
Answer: It is always possible to deposit USD dollars in your Bitstamp account. Crypotrader will automatically detect this and use these extra USD dollars for the next purchase. The Trader always buys in with a percentage of available USD budget. It makes no sense to deposit Bitcoins, the trader does not do anything with it.
Question: I have just added euros to my bitstamp account but I see that cryptotrader does not use it for new purchases. What’s up with that?
Answer:The cryptotrader can only work with USD in your Bitstamp account. Therefore, you must first convert Euros in your bitstamp account to USD. Use the following instructions: Convert Euro to USD.
Question: I saw a good buy opportunity at bitcoinwisdom, but the trader did not buy anything. How come?
Answer: The trader will place a limited buy order at bitstamp when there is a good buy opportunity. However, when there are not enough sellers at bitstamp the order will not be fulfilled. The trader will wait 4 minutes to check if the order is fulfilled. If not, it will cancel the limited order and wait for a next opportunity to buy or sell.
Question: I just checked my account at Bitstamp and saw a buy / sell, however, the web app of cryptotrader.online does’t show anything yet. I also did not receive an email from cryptotrader.online with a buy / sell notification. How come?
Answer: The trader always waits 4 minutes after the limited buy / sell order to check if the order is fulfilled. When the order is successfull it will register this in cryptotrader.online and send an email notification. The web app caches data for 1 minute. This means that there can be a delay of 5 minutes before the order can be seen.
Question: What happens when the price of Bitcoin goes up 100% in one day, will my pockets be sold, even when this leads to negative credits?
Answer: When AFTER the sale action, in which potential multiple pockets are sold, the credits become negative then the trader will be pauzed. However, the sale action will be executed.
Question: I have sold the bitcoins, which the trader bought for me, manually on bitstamp. Now all my pockets are gone? How come?
Answer: Just before the trader sends a sell order to bitstamp, it will check if there are still bitcoins available in the account. If all the bitcoins are gone, because a user decided to sell them manually, all open pockets will be removed (there is nothing to sell anymore).
Tip: When you want to trade manually (parallel with the cryptotrader), it’s better to create a sub-account for the trader. This way, manually trading does not interfere with the cryptotrader. Make sure that the API key of the trader is linked to the sub-account (instead of the main account).
Questions: Is seems that a pocket is sold partially. How is this possible?
Answer: When the market is slow, with few buyers, it can happen that in a period of 4 minutes the pocket is only sold partially. The trader registers how much is sold and how much is left. The sold bitcoins can be found in the actions overview. The remaining bitcoins are left in the pocket. The pockets can be found in the pockets overview.
Question: I have multiple pockets which can be sold with enough profit margin, but the trader sold only a few pockets.
Answer: The trader will always try to sell all pockets which meet the minimum profit margin requirements. However, the market can be slow (few buyers) which causes that only a few pockets are sold instead of everything. The trader will then try to sell them at the next sell opportunity.
Question: The trader just sold a pocket with profit but directly after this it bough a new pocket for a somewhat higher price. Is it then not better to not sell the pocket at all?
Answer: The trader will always do it’s best to sell pockets with enough profit margin on good sell opportunities. However, the trader can not predict the future. It can happen dat a pocket was just sold for a nice profit on a good sell opportunity but after a small dip then the price of bitcoin starts rising again. The trader does not want to miss this new rally and makes sure to buy a new pocket so new profit can be made.
Question: Why does the trader only buy for 10% of the available USD budget, shouldn’t he use the full budget for a new buy?
Answer: The trader will always try to buy at a good buy opportunity. However, the trader cannot predict the future. It happens often that after a good buy opportunity, an even better (with lower bitcoin price) opportunity follows. By only buying with 10% of the available budget the trader has still money left to buy again on even better buy opportunities. It will only buy again when the new bitcoin price is lower than the lowest price in existing pockets. Simulations have shown that this strategy results in the highest yearly financial yield for this trader.