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 workspace create sandbox --capital 10000 --mode paper --currency USD -o json 2>/dev/null
export KRAKEN_WORKSPACE=sandbox

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

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

# Repeat buy, check status each iteration
kraken paper buy BTCUSD $VOLUME -o json 2>/dev/null
kraken workspace 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=$(kraken ticker BTCUSD -o json 2>/dev/null | jq -r '.[].last_price')
   VOLUME=$(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: