This week, I put Core Number Compounding (CNC) on Hive into practice. Things are working. However, they do not work as expected. We will quickly go over the expectations. Then, we will go over the details on how it actually worked out. Please see the previous article for details about Core Number Compounding.
I was able to scrape together $1200 to run the experiment. The trades would be conducted on the HIVE currency exchange at https://wallet.hive.blog/market.
The initial expectation was to be able to use Coingecko to calculate buy and sell points. Putting in the HIVE balance at https://www.coingecko.com/en/coins/hive will calculate the dollar value of HIVE. If the value is over $1010, then sell. If the dollar value is below $960, then buy.
It quickly became evident that the setup will not work. Coingecko and the Hive currency exchange have different prices. The calculations would not work.
I figured I would need to have a calculator or spreadsheet at the ready to calculate buy and sell points. At the very least, I would have to do quick mental maths.
It turns out that the Hive Currency Market is all you need to do Core Number Compounding with HIVE. By clicking on "Available" and "Highest Bid", you can populate the fields for HBD/HIVE, HIVE, and HBD($). The HBD($) is what you use to determine the values for CNC buying or selling.
In addition, you can click on Buy Orders or Sell orders to approximate your Buy and Sell numbers automatically.
And, you can automatically lock in buys and sells by placing orders around your core number in advance.
You have to put in your Buy Order first. Putting in a Sell Order locks up some HIVE, which throws off the calculations. The way I do it is to click on Buy Orders until the HBD($) on the right side reaches $960 or less. Then, I place my buy order.
For automatically locking in profit, you click on the Sell Orders listings until the right hand HBD($) reaches $1010 or more. I wouldn't go higher than $1020. Then, place your sell order.
Now, you can walk away knowing that you'll get a good price or make a profit while you're out enjoying life.
You could also be more adventurous by putting in multiple buy orders every $40 down and multiple sell orders every $10 up. However, it gets complicated. If you wanted to work hard, you'd get a job.
The simplicity of Core Number Compounding is that you ALWAYS buy low and sell high. It's built into the method.
If HIVE has a dump or a pump that goes beyond your buy or sell orders, you can easily top up or sell off to bring your position back to your core number. It's not the end of the world. The Core Number gives you an anchor around which to make buy and sell decisions.
The automation will be particularly handy during times when HIVE is trading sideways. You can check in once a day, or once a week. If your order triggered, simply reset and walk away again.
In summary, Core Number Compounding on Hive turned out to be much easier than I expected. I don't even have to do maths.
In fact, it's better to walk away once you've set your traps. Sitting around staring at the screen can get a bit compulsive. Unless you see a big market movement, you'd be OK to check your price traps at set times of the day. Let's say you check in the morning, at lunch time, and again in the evening. Unless the market is particularly volatile, you won't lose out on much.
I did a few sells and at least a couple of buys as the market retraced.
I started with 617.462 HIVE and 102.444 HBD. This morning, I have 568.210 HIVE and 158.383 HBD. That is a reduction of 49.252 HIVE and a gain of 55.943 HBD. I could have earned more, except for my error in thinking Coingecko and Hive Currency Market prices were the same when I started. I suspect I lost money in the first trades. But, in the end, I have 55 HBD I didn't have yesterday. And, I still have $1000 of liquid HIVE. Now that I've ironed out the details, it should be a simple process from here onward.
