The Bottom-Fishing and Take-Profit Strategy is an automated investment method that leverages dual-currency financial products to systematically buy low and sell high. By cycling through these two core actions, it aims to capture returns from both price appreciation and steady interest earnings. When using USDT as the base currency, the strategy utilizes dual-currency investments to acquire cryptocurrencies at lower prices and subsequently profit from selling at target levels, all while accumulating interest income.
How the Strategy Operates
This approach uses a rules-based system to automate entry and exit points, removing emotional decision-making and enabling continuous capital rotation.
Standard Mode
In this mode, the strategy operates within a fixed price range to execute its core functions.
Buy and Sell Mechanism: The system uses the bottom-fishing feature to purchase a cryptocurrency at a predetermined price. After a successful purchase, it activates the take-profit function to sell at a specified target.
Key Terms Explained:
- Buy Price: Your desired target price to acquire the cryptocurrency. Until a successful purchase, your capital is continuously reinvested in dual-currency products to earn interest.
- Take-Profit at Buy Price: This setting automatically sets the sell price equal to the successful buy price, aiming to sell high after buying low.
- Sell Price: Your desired target price to sell the cryptocurrency. After a purchase, funds are allocated to dual-currency products to earn interest until the sell condition is met.
- Minimum Annual Yield (APY): The lowest acceptable annualized return. This criteria filters which dual-currency products are selected for reinvestment.
- Maximum Settlement Period: The longest investment duration you are comfortable with. This also serves as a filter for selecting suitable products.
Operational Workflow: Once an order is activated, the strategy begins by attempting to buy at your specified "Buy Price." Before a successful purchase, your principal and earned interest are automatically reinvested into similar dual-currency buy products. After successfully buying the crypto, the strategy shifts to selling mode, allocating the balance to dual-currency sell products to earn interest until the "Sell Price" is reached. This cycle then repeats to continuously capture interest and price differentials.
Advanced Mode
This mode uses a dynamic price range based on the current market price, offering more flexibility.
Buy and Sell Mechanism: The system buys a cryptocurrency when the market price falls by a user-defined percentage. After a successful purchase, it switches to take-profit mode to sell.
Key Terms Explained:
- Buy on Market Price Drop (%): The percentage drop from the current market price at which you wish to buy the cryptocurrency.
- Take-Profit at Buy Price: The sell price is set equal to the actual price at which the cryptocurrency was purchased.
- Take-Profit on Buy Price Rise (%): The percentage increase from your buy price at which you wish to sell the cryptocurrency.
- Minimum Annual Yield (APY): The lowest acceptable return for product selection.
- Maximum Settlement Period: The longest acceptable investment period for product selection.
Operational Workflow: After activation, the system finds a dual-currency buy product whose price is closest to Current Market Price * (1 - Your Defined Drop Percentage). Until a purchase is successful, funds are reinvested. After acquisition, the crypto balance is automatically placed into a take-profit product until the selling condition is met. The cycle then repeats. 👉 Explore more strategies to enhance your portfolio management.
A Practical Example
Let's assume a user selects the Standard Mode for Bitcoin (BTC) with the following parameters:
- Buy Price: 75,000 USDT
- Minimum APY: 10%
- Maximum Settlement Period: 30 days
- Take-Profit: Set to "At Buy Price"
How the Bot Runs:
- Product Selection: The bot searches for a BTC dual-currency buy product with a target price at or near 75,000 USDT. It excludes any product with an APY below 10% or a settlement period longer than 30 days.
- Scenario A - Price Above Buy Price at Expiry: If the settlement price is above 75,000 USDT, the buy order is not triggered. The user earns the interest from the product. The bot then automatically reinvests the principal plus interest into a new, similar dual-currency buy product at the 75,000 USDT price point.
- Scenario B - Price At or Below Buy Price at Expiry: If the settlement price is equal to or below 75,000 USDT, the bot successfully buys BTC at 75,000 USDT.
- Switching to Sell Mode: After the purchase, the bot switches to take-profit mode. It now looks for a dual-currency sell product with a target price of 75,000 USDT, still adhering to the 10% APY and 30-day period constraints.
Sell Mode Execution:
- If the settlement price is below 75,000 USDT, the sell order is not executed. The user earns interest in BTC, and the bot continues the take-profit operation.
- If the settlement price is at or above 75,000 USDT, the bot sells the BTC at 75,000 USDT. The user now holds USDT again, and the cycle restarts by reinvesting into a new bottom-finding order at 75,000 USDT.
This automated loop aims to generate returns from both interest and the captured price spread.
Frequently Asked Questions
Q: What is the primary goal of this strategy?
A: The main goal is to generate a return from two sources: the interest (yield) earned from dual-currency products and the potential profit from buying a cryptocurrency at a low price and selling it at a higher one, all managed automatically.
Q: How does the strategy decide which financial products to use?
A: The strategy uses your set parameters—specifically the Minimum Annual Yield and Maximum Settlement Period—as filters. It scans available dual-currency products and selects those that best match your defined buy/sell price and these financial criteria.
Q: Can I withdraw my funds at any time?
A: No, you cannot withdraw immediately while the strategy is active. You can only schedule the strategy to stop. Your funds will remain locked in the current dual-currency product until it reaches its settlement date, at which point they can be redeemed.
Q: What happens if the market is very volatile?
A: During periods of extreme volatility, the automated system might struggle to find a suitable dual-currency product that meets your exact criteria. In this case, you have the option to wait for a match or manually stop the strategy.
Q: Is there a minimum amount of funds required?
A: Yes, the strategy requires your running balance to meet the minimum investment threshold for new dual-currency products. If your balance falls below this level, either from price movements or partial exits, the bot will be unable to match new products and the cycle will pause.
Q: Can I use this strategy for any cryptocurrency?
A: The availability of this strategy depends on the supported dual-currency products offered on the platform. It is typically available for major cryptocurrencies like BTC and ETH, but you should check the current list of supported assets.
Important Risk Warnings and Considerations
- Limited Liquidity: While the strategy is running, your funds are committed to dual-currency products. You can only schedule a stop; actual redemption occurs only after the current product settlement cycle is complete.
- Market Volatility Risk: Rapid price movements can prevent the strategy from finding a matching product that meets your parameters, potentially leading to missed opportunities or idle funds.
- Minimum Balance Requirement: The strategy will halt if the allocated capital no longer meets the minimum investment amount required for new dual-currency products, interrupting the automated cycle.
- Principal Risk: Like all investment products, dual-currency investments carry inherent market risk. There is a possibility of loss, especially if prices move dramatically against your positioned directions.