BTC:BTS Grid Trading “Staggered Orders” Strategy
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Trading Bitcoin vs BTS on the BitShares Decentralised Exchange
Bitcoin is available to trade on the BitShares DEX. Multiple “Gateways” are operational on the DEX and allow BitShares users access to a multitude of cryptocurrencies.
When you read “DEX Gateway”; think “a CEX that uses the fast and transparent BitShares DEX to execute trades and manage their assets on behalf of their users”.
Using an open-source codebased DEX Gateway instead of the closed-sourced code of a CEX like Binance gives the user the ability to trade against Decentralised StableCoins and quickly move into assets that carry zero counterparty risk. DEX StableCoins and bts cannot be frozen or confiscated and withdrawals can’t be blocked or transfers hindered. DEX users who hold bitUSD, bitCNY or bts cannot be “Goxxed”.
For trading BTC the current most popular Gateway is OpenLedger. Other Gateways such as CryptoBridge, SparkDEX, RuDEX plus more are also available. Compare their trading fees and liquidity reward schemes to make the choice that’s right for you.
OpenLedger assets trade on the DEX with the prefix “OPEN.”
OPEN.BTC is an asset available for trade on the BitShares DEX that is backed by real on-chain-BTC managed by OpenLedger. Deposits and Withdrawals to the DEX via OpenLedger operate in the same way as CEX’s like Binance or Huobi.
BTS is the core token of the BitShares DEX. It is used for paying fees, collateralising StableCoins and voting on DEX governance. 1 bts = 1 vote.
What is “Staggered Orders”?
Staggered orders is very similar to a common strategy for trading FOREX known as “grid trading”. Many orders at many different prices are placed on the DEX at a defined incremental spread such that whenever there is volatility the strategy executes a trade and waits for the short/medium or long-term trend to reverse. Staggered Orders should only be used in markets that the user is confident that both assets will retain at least some of their value. If one asset of the chosen pair goes to zero, Staggered Orders is not a good strategy.
DEXBot can be used to run a 24/7 automated Staggered Orders Market Making Strategy:
Read the DEXBot wiki documentation: https://github.com/Codaone/DEXBot/wiki
Download the DEXBot software for Windows (Install Wizard), MacOS or Linux from: https://github.com/Codaone/DEXBot/releases/latest
Users can create a BitShares Account using this referral link: https://wallet.bitshares.org/?r=dexbot-worker-escrow
One a BitShares account has been created using the https://wallet.bitshares.org/?r=dexbot-worker-escrow link users would need to deposit Bitcoin to the DEX:
Step 1: Login to the BitShares Account by going to https://wallet.bitshares.org
and clicking the padlock in the top right corner and typing in a strong easy-to-remember-hard-to-hack password (such as “rainbow-software-pony-flippant-holy”):
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Step 2: Click on the “Hamburger” menu button in the top right corner, and click Deposit:
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Step 3: Type “BTC” as the asset to deposit and then choose a Gateway:
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Step 4: Follow the instructions and send BTC on the Bitcoin Blockchain to the BTC address provided by your chosen gateway to deposit BTC to your BitShares Account. Wait until the transaction has received the required number of BTC confirmations.
Step 5: To trade BTC vs BTS users will need to trade some of your deposited BTC for BTS so as to have some of each asset available to trade against eachother. For trading OPEN.BTC vs BTS, go to https://wallet.bitshares.org/#/market/OPEN.BTC_BTS:
You will need to enter how much of your OPEN.BTC you want to trade for BTS in order to setup your Staggered Orders Strategy. Half OPEN.BTC and half BTS is one option.
You will need to enter a BTC price at which to buy bts, the DEX will always execute orders so that you get at least what you ask for. If you put in a too-high price to buy, the DEX will take existing sell orders on the orderbook first, so you won’t necessarily pay the high price that you enter. But if you’re spending a lot of BTC you will want to look at the Market Depth of the orderbook to see how many bts you can buy at your chosen price. If you enter a low price first, you can always cancel your order and raise it afterwards if you don’t get a quick trade.
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Step 6: Now you have some OPEN.BTC and BTS it’s time to setup DEXBot to trade the Staggered Orders strategy you want:
To setup DEXBot you will need to create an “Uptick” wallet to encrypt DEXBot. See the guide here: https://github.com/Codaone/DEXBot/wiki/Uptick-Wallet-Guide
You will also need the Active Private Key for your BitShares account to give DEXBot permission to make trades from the account. See the guide here: https://github.com/Codaone/DEXBot/wiki/BitShares-Active-Private-Key-Guide
Now you have logged in to DEXBot, you will need to “Add worker” to setup your desired Staggered Orders Strategy for OPEN.BTC vs BTS:
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