Limit order market buys/dumps

I had a thought about the vaults that buy at market to add in profits.

Has anyone worked out if DCAing the buys is the best with all the profits from dumping rewards? Or should some profits of the rewards be held in wait (not indefinitely) for a certain price dip.

And what about the market dumps? Sell at a certain price (say a certain percent above that last dump price.

I get that this adds in the risk of limits never being met, but the the price is updated every time the harvest happens, it might work.

Realistically, holding would add in another layer that I’m not sure is wise. Basically, you would need to be bullish on the asset you were farming, or bearish on the underlying asset you were holding. I think this would get incredibly subjective very quickly but theoretically there would be ways to build something like this into a vault strategy if someone really wanted to—I just don’t think the demand would be there.

1 Like

The longer you hold the greater the risk of price volatility. I think that they should dump the farmed token ASAP to minimize this risk.

1 Like