Bitcoin trading dca - serverless

Based upon the work of https://github.com/0x13a/bitcoin-trading-dca.

This node script let you set a daily amount to invest on crypto currency (Bitcoin in this case) via the kraken crypto exchange.

Unfortunately aws lambda don't support node 8 yet so this project uses webpack to transpile your javascript and upload it to aws.

Dollar Cost Averaging

Dollar-cost averaging (DCA) is an investment technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. The investor purchases more shares when prices are low and fewer shares when prices are high.

Dollar Cost Averaging has being initially used in the stock market to pursue an investment on an higher number of stocks with the same amount spend, just by investing it in a longer period of time due to the volatility of the stocks.

In the case of crypto-currency is well known that the volatility of those assets is way higher than the traditional shares purchased in the stock market. This makes the Dollar Cost Averaging strategy well suited for this type of investments.

How you should choose investment amount and range

This highly depends on your risk level, in my case what I've done is set up a total investment amount. Let's say I want to invest 1000$ and I want to spread my investment for 3 months. I also know I want to invest daily to take advantage of the volatility of the bitcoin against the dollar.

1000 / (3 * 30) = 1000 / 90 = ~11$ / day

Disclaimer

Dollar Cost Averaging is meant to be used as a long-term strategy. This does not mean that returns are guaranteed, it's an investment and it's on your own risk. The general idea of this is to be used as Buy, hold and don't watch too closely

Requirements

• Install the Serverless Framework
• Configure your AWS CLI
• Kraken API KEY

Installation

To create a new Serverless project with ES7 support.

$ serverless install --url https://github.com/izifortune/bitcoin-trading-dca-serverless --name my-project

Enter the new directory

$ cd my-project

Install the Node.js packages

$ npm install

Configuration

You will need to modify the serverless.yml:

custom:
  logsBucket: myBucketName
  logsFile: myLogFileHere

logsBucket refer to the bucket name where do you want to log the transaction information. logsFile is the file name where to store the logs.

    environment:
      KRAKEN_KEY=myKrakenKeyHere
      KRAKEN_SECRET=myKrakenSecretKeyHere
      INVESTMENT_AMOUNT=11.11
      ASSETS_PAIR=XXBTZEUR

Add all the info for kraken API as environment variables.

Schedule

By default the schedule its setup through a cron job of aws lambda once a day.

cron(0 10 * * ? *)

You can modify this editing serverless.yml:

events:
 - schedule: cron(0 10 * * ? *)

Usage

To run a function on your local

$ serverless invoke local --function start

Deploy your project

$ serverless deploy

To add another function as a new file to your project, simply add the new file and add the reference to serverless.yml. The webpack.config.js automatically handles functions in different files.