Run it before any organized pump and it will buy at the beginning of the pump and sell before the dump. Just set the parameters and you are ready to go.
Disclaimer: Pump Catcher is not a tool to make a pump and dump in any market and does not collaborate with any pump and dump groups on any platform, it simply catches when there is an unusual change in price and allows you to buy and sell very quick on a predefined percentage that you choose.
Before we explain how it can be used let’s explain what is a pump-and-dump scheme?
A pump-and-dump scheme is a type of price manipulation where a group of traders aim to drive an asset’s price up through coordinated buying. Once outside investors notice the surge in price, the insider group starts selling the positions they previously acquired at lower prices, thus making a profit. While it looks very bad there is an opportunity to benefit from this rapid movement in price in a very short period of time.
It is important to mention that pump-and-dump schemes are illegal and considered securities fraud by the United States Seсcurities and Exchange Commission (SEC), but it is still legal or we can say not illegal in cryptocurrency exchanges.
How does the pump happen?
There are several channels on Telegram that organize such a movement, the organizers first buy the coin in silence and then give it to VIP groups couple of minutes before the pump and finally they publish it on public groups so can the crowd FOMO and buy it at scale, then the organizers and VIPs can sell to them at a higher prices.
Pump Catcher will detect such unusual movements in the chart and then buy the coin at the beginning of the pump before the crowd even starts to buy and then sell it hopefully before the organizers sell (it depends on your predefined target ).
What is important about the pump is that we know when it is going to happen. It is enough to run Pump Catcher 5 – 10 minutes before the pump, set the parameters first(explained below) and hit Run.
Strategy Parameter:
There are two types of parameters Basic and Advanced, the former is responsible for how to react against the pump (i.e when the orders should be placed),
While the latter is responsible for detection.
Basic Parameters:
Quote:
The quote asset which one pair of it will be pumped.
Account:
Must be a binance account.
Quantity:
The amount to enter the pump with, taken from quote asset(make sure that you
have BNB balance for the fees).
Price Change Percentage(Confirmation):
The percentage that the price has to increase before entering (placing a buy
order) this is a confirmation that the pair is being pumped.In most cases we
found that 2% price change is good confirmation.
Buy Price Percentage(Enter):
The price that the buy order will be placed at, calculated as a percentage from
time the pump is confirmed.
Sell Price Percentage (TP):
Take profit percentage.
Cancel Percentage(Exit):
The price change in percentage after the buy order placed and before it get
executed (the price jumped above the buy order and the buy order should be
canceled). This parameter ensure that the buy order will not executed in the
dump phase.
Advanced Parameters:
These parameters are related to the pump group.
Sensitivity (Between 15 & 40):
The more people will enter the pump means the more sensitivity.
Speed (Between 500 & 1000):
The speed that people will react to the pump announcement.
Analyse mode:
If this is set, strategy will enter in sandbox mode (no orders will be placed).
Calculate Tick Changes:
If this is set, the symbol’s history will be taken in consideration while
detecting the pump as usual the pumped coin will have a small market cap.