Need 2 Knows

Need 2 Knows#

This is a section of the documentation that contains important information that you need to know. It is important to read this section before you begin using the software.

What happens to partially filled buy orders?#

The algorithm manages its orders in lean way, meaning partially filled buy orders that may get cancelled will be remembered. This is done internally by saving the order price and filled amount in order to place a sell order at a higher price in the future.

The log shows closed connection but the algorithm is still running#

In a case where a traceback or warning containing something like “got an exception no close frame received or sent” is shown in the log, the algorithm will keep running, as the underlying python-kraken-sdk library handles the reconnect.

In case of uncertainty, the kraken-infinity-grid can be started with verbose logging to see the reconnection process (and more). The verbose logging can be enabled via -v for debug logging of the kraken-infinity-grid or -vv for even more logging of used packages.

Hidden tax benefits#

Warning

This is no financial advice. The authors of this software are not tax advisors. The following scenario may not apply universally. Users should conduct their own research.

In many countries, the tax principle of First In, First Out (FIFO) is applied to cryptocurrency trading. The kraken-infinity-grid benefits from this, as the first purchased assets are the first to be sold. This means that in sideways or downward-trending markets over the medium to long term, sell orders may liquidate assets bought at higher price levels (from a tax perspective). Consequently, even if actual profits are made by selling at a higher price than the last buy order, no taxes may be due, as the transaction could be considered a loss for tax purposes. This approach can be utilized to accumulate cryptocurrencies in declining markets, such as with the GridHODL strategy, potentially without incurring any tax liabilities.

Useful tools#

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