Take the following order as an example:
Holding PnL: Flying Wheel Strategy uses Buy-the-Dip and Covered Gain to buy BTC at a low price and sell it at a high price. If the price at settlement is lower than your target buy price, BTC will be bought, and holding PnL will be generated due to price movement before BTC is sold.
Below we provide three solutions to help you deal with the negative holding PnL. The main idea is to keep holding the coin to earn yield while waiting for the price to rise until it can be sold at the buy price.
Solution 1: Keep running Flying Wheel until you sell the crypto (recommend)
You can keep running Flying Wheel until you sell the crypto. Before BTC is sold, Covered Gain will help you earn yield in BTC. When the price of BTC goes above the sell price, Covered Gain will sell your original investment and yield (BTC holdings) to USDT. In this process, your arbitrage PnL will keep increasing, and holding PnL will become positive.
Solution 2: Close the bot and sell your crypto holdings using limit order
You can close the bot to receive the BTC you bought, and sell BTC at a price higher than the buy price using limit order. The advantage of solution 2 is that as long as the market price ≥ limit price, the order will be filled.
Solution 3: You can close the bot to receive the BTC you bought, and invest BTC holdings to ETH/BTC grid trading bot
You can invest BTC holdings to ETH/BTC grid trading bot. When the increase in the price of ETH is stronger than BTC, you will earn more BTC. When the increase in the price of BTC is stronger than ETH, you will earn more ETH. This way you can earn more crypto and wait for the price to bounce back.
