bitcoin-trading-dca

Finance and crypto

bitcoin dollar cost averaging bot

SHOW HN2017

170points
120comments
#214of 2,242 in 2017
Top 10%of 2017 by points

How HN took it

CuriousMostly questions and neutral comments

4 positive, 28 neutral or asking, 1 mixed, 21 critical, out of 54 comments about the project. Thread score -0.31.

Idea: 3 for, 16 againstPricing: 0 for, 2 againstExecution: 0 for, 2 againstPrivacy: 0 for, 1 against

The thread, comment by comment

Each row is a top-level comment and its replies, in HN's order. Select a cell to open that comment on HN.

positive neutral or mixed critical about another commenter or something else the maker

What HN said

What people liked

  • Dollar cost averaging is a simple, useful strategy for volatile assets

    From 1 comment
    • "Bitcoin investing" sounds a bit like an oxymoron to me (more like speculating). Anyway, dollar-cost-averaging looks like a great strategy if you are very bullish on a asset…
      simo7 on HN

Objections

  • Transaction fees are ignored and would erode the invested amount

    From 2 comments
    • The example says they want to invest $1000 over the course of 3 months, so 1000 / (3 * 30) = 1000 / 90 = ~11$ / day. But aren't the transaction fees (at least for Bitcoin)…
      netinstructions on HN
    • You're right. All these investing "strategies" ignore these costs.
      fiatjaf on HN
  • Dollar cost averaging is market timing and can underperform lump sum investing

    From 1 comment
    • Another problem with DCA is that it's a classic case of "timing the market". If, over the course of those 3 months, the value of the asset you're purchasing consistently…
      brndnmtthws on HN
  • Bitcoin investing is more like speculation than investing

    From 2 comments
    • "Bitcoin investing" sounds a bit like an oxymoron to me (more like speculating). Anyway, dollar-cost-averaging looks like a great strategy if you are very bullish on a asset…
      simo7 on HN
    • Trading != investing, dollar cost average is an investing strategy, not a trading strategy; you have an investing bot, not a trading bot.
      gnaritas on HN
  • Script stores exchange API keys in plain text

    From 1 comment
    • I am sorry to say that but this script is quite laughably naive. It even includes storing your exchange API keys on plain-text on disk. Yum!
      qmachu on HN

Requests

  • Show backtest graphs of DCA at different times and amounts

    From 1 comment
    • When I saw this initially, I thought this'd be a bunch of graphs detailing how you would have done to invest using DCA at different times in the past, and at different amounts.…
      popman on HN

Questions

  • Why is DCA still used given evidence it underperforms?

    From 1 comment
    • There is plenty of empirical evidence showing that DCA doesn't work, and only provide a psychological value. Why are people still using it? And for Bitcoin?
      ucaetano on HN

Alternatives named

  • Moving average tactical allocation strategy

    From 1 comment
    • A better approach with an extremely volatile asset like Bitcoin is a simple tactical asset allocation strategy. For example, the following system significantly outperforms both…
      pdog on HN
  • Coinbase recurring purchases and GDAX

    From 1 comment
    • FWIW, this is a feature on coinbase-- you can just have them ACH charge your bank account a fixed amount each day, each week, each month, etc (each hour maybe?). Unfortunately…
      rothbardrand on HN
  • coinsavers.net DCA website

    From 1 comment
    • a few years back I made a similar DCA website, you can find it at: https://coinsavers.net The site has helped me to take the timing anxiety out of buying; it was initially made…
      mrosseel on HN

Category, keywords, summaries and labels on this page were made by AI (Thread Reader v2) and not checked by hand. Each point links to the comments it came from.

Add a badge to your READMEShown on HackerShow
[![Shown on HackerShow](https://hackershow.org/badge.svg)](https://hackershow.org/show/15117037)