Short list of features that help you to stay safe when bidding.
- The Best: Collection/Trait floor cap, #Asset Limit & maximum active bids
- Basics: dynamic bidding price (in %), Hardcap bid price, Short validity of bids
As of Today there is no other tool that does real-time trait floor price checks on every bid. The reason why NFT Butler can provide this service is a huge database that has been built by the team mirroring OpenSea data. So in regards of safety when trait floors are dropping rapidly, you're in the best hands here.
How Trait/Floor Price Cap works:
Simply toggle "Floor price cap" or "Trait floor price cap" as in the screenshot below
and specify values. Usually it's enough to choose a minimum floor price value when we're concerned about dropping floors. The bot will stop bidding when the trait/collection floor price drops below the defined value. For Token Bidding tasks that include multiple traits, the bot will stop bidding when at least of the traits falls below the specified value. Recommendation for Collection Tasks: always use a floor price cap - maybe even in combination with the "Asset Limit" & "Maximum Active Bids" Feature.
Reasoning: When a whale decides to dump a lot of tokens you want to limit the damage. The bot will automatically stop bidding when the collection floor price drops under your floor price cap limit, and it would also stop bidding if you have specified an "Asset Limit" and you have already gotten as many tokens. But should you still have 5 active bids on the collection, there's nothing we can do to prevent the whale to dump 5 tokens to you. That's why you might want to consider to set a "Maximum Active Bids" Limit to further decrease the risk of rapidly dropping floor prices. That feature is only available/relevant on CTOs but will make sure you don't overexpose on on collection by limiting the amount of bids that can be active simultaneously.
Recommendation for Trait Bidding Tasks: use a trait floor cap. floor price cap can still be useful if you assume that the trait floor correlates with the overall collection movements. Asset limit & Max active bids can be used, but are usually less relevant on high profitable traits. DYOR.
About #Asset Limit & how it works:
The community was asking for this feature, so there you go! You can now specify a maximum # of tokens you want to acquire from the same contract. As soon as the limit is reached, the task will stop bidding. It is important to know that when counting the # assets in all your wallets, the bot will count all tokens coming from the same contract. Currently there is no option to specify a maximum per trait, but we could go in that direction if there's a strong demand by the community.
Trait/Collection floor price cap, #Asset Limit & Maximum Active Bids
A few words shall be said about one of the most basic strategies: working with %-prices instead of absolute ETH prices allows to run tasks over a long time without the need of updating prices daily.
But if your going for a completely dynamic calculation you might expose urself to additional risks if the FP does sudden unexpected movements. For example if floor gets sweeped, FP doubles and you had a bidding price of 2x the FP defined --> suddenly you would bid 4x the initial bidding price. To avoid overexposure in these scenarios you can simply put a "hardbid cap". NFT Butler will then never put a bid higher than the specified value.
Another good idea is to work with short bid validities. Obviously this works better on Collection & Trait Bidding tasks because you will usually have to put longer bidding validities on token bidding tasks to make them work properly in most scenarios.
Dynamic bidding price (in %), hardcap bid price & Short validity of bids