kraken-dca-strategy

kraken-dca-strategy

Use this skill for:

• implementing a recurring buy strategy at fixed intervals
• tracking average cost basis over time
• comparing DCA performance against lump-sum entry
• running DCA simulations in paper mode first

Core Concept

Dollar cost averaging buys a fixed dollar amount of an asset at regular intervals regardless of price. This reduces timing risk and smooths entry cost over volatile periods.

Paper DCA Loop (Test First)

Always validate the strategy in paper mode before going live.

The paper buy command takes base-asset volume, not dollar amount. Calculate volume first:

kraken paper init --balance 10000 --currency USD -o json 2>/dev/null

# Calculate BTC volume for a $100 buy at current price
PRICE=$(kraken ticker BTCUSD -o json 2>/dev/null | jq -r '.[].c[0]')
VOLUME=$(echo "scale=8; 100 / $PRICE" | bc)

# Simulate weekly buys
kraken paper buy BTCUSD $VOLUME -o json 2>/dev/null
kraken paper status -o json 2>/dev/null

# Repeat buy, check status each iteration
kraken paper buy BTCUSD $VOLUME -o json 2>/dev/null
kraken paper status -o json 2>/dev/null

kraken paper history -o json 2>/dev/null

Live DCA Single Buy

Each interval, the agent executes one market buy for the fixed amount:

1. Check current price:

   kraken ticker BTCUSD -o json 2>/dev/null
   

2. Calculate volume from dollar amount (e.g., $100 at current price):

   PRICE=$(kraken ticker BTCUSD -o json 2>/dev/null | jq -r '.[].c[0]')
   VOLUME=$(echo "scale=8; 100 / $PRICE" | bc)
   

3. Validate the order:

   kraken order buy BTCUSD $VOLUME --type market --validate -o json 2>/dev/null
   

4. Execute (requires human approval):

   kraken order buy BTCUSD $VOLUME --type market -o json 2>/dev/null
   

5. Log the trade for cost basis tracking.

Cost Basis Tracking

After each buy, query trade history to compute running average:

kraken trades-history --consolidate-taker -o json 2>/dev/null

The agent should maintain a running total:

• Total invested (sum of all dollar amounts)
• Total units acquired (sum of all volumes)
• Average cost = total invested / total units
• Current value = total units * current price
• Unrealized P&L = current value - total invested

Limit-Order DCA Variant

Instead of market buys, place limit orders slightly below the current price for better fills:

PRICE=$(kraken ticker BTCUSD -o json 2>/dev/null | jq -r '.[].b[0]')
LIMIT=$(echo "scale=2; $PRICE * 0.998" | bc)
VOLUME=$(echo "scale=8; 100 / $LIMIT" | bc)
kraken order buy BTCUSD $VOLUME --type limit --price $LIMIT -o json 2>/dev/null

Check fill status at the next interval. Cancel unfilled orders before placing new ones:

kraken open-orders -o json 2>/dev/null
kraken order cancel <UNFILLED_TXID> -o json 2>/dev/null

Multi-Asset DCA

Split a fixed budget across multiple assets (e.g., 60% BTC, 30% ETH, 10% SOL):

# $100 total: $60 BTC, $30 ETH, $10 SOL
# Calculate volumes for each, then place orders sequentially

Scheduling

The CLI does not include a built-in scheduler. Agents should use external scheduling (cron, task scheduler, or the agent's own loop timer) to trigger DCA buys at the chosen interval (daily, weekly, bi-weekly, monthly).

Hard Rules

• Never execute live DCA buys without explicit human approval for the strategy and per-trade confirmation (unless operating at autonomy level 4+).
• Always paper-test the DCA loop first.
• Track cost basis after every buy; do not lose history.
• Cancel stale limit orders before placing new ones to avoid duplicate exposure.