Average Cost Base Explained
Average Cost Base (ACB) represents the average price paid for the assets held by a strategy.
Aurono uses the average cost base as a mandatory safeguard when selling.
Understanding this concept is essential to understanding why Aurono may choose not to sell, even when price has risen.
What Average Cost Base Is
Section titled “What Average Cost Base Is”The average cost base is calculated as:
The total amount spent on buys
divided by
the total amount of assets currently held by the strategy
It reflects the average acquisition price of the remaining position.
How ACB Is Built
Section titled “How ACB Is Built”Each time Aurono executes a buy:
- Capital is spent
- Assets are added to the strategy’s holdings
- The average cost base is recalculated
Multiple buys at different prices result in a blended average.
How ACB Changes Over Time
Section titled “How ACB Changes Over Time”- Increase total invested capital
- Increase asset quantity
- Recalculate the average cost base
- Reduce asset quantity
- Reduce invested capital proportionally
- Recalculate the average cost base for the remaining position
The average cost base always reflects only the assets still held.
The ACB Sell Rule (Very Important)
Section titled “The ACB Sell Rule (Very Important)”Aurono enforces the following rule:
Aurono only sells when the sell price is above the strategy’s average cost base.
This rule applies in addition to the sell trigger (Rise %).
This means:
- Even if the sell trigger percentage is met
- Aurono will not sell at a loss
- Selling below average cost base is explicitly prevented
This rule:
- Is always active
- Cannot be disabled
- Applies to all strategies
Why This Rule Exists
Section titled “Why This Rule Exists”The ACB rule is designed to:
- Prevent realizing losses through partial sells
- Avoid capital erosion during volatile markets
- Keep strategies accumulation-focused by design
- Enforce disciplined execution
Aurono prioritizes capital preservation over trade frequency.
Example Scenario
Section titled “Example Scenario”Assume:
- A strategy has accumulated assets at an average cost base of €100
- Price rises to €98
- Sell trigger percentage condition is met
Result:
No sell occurs
Because selling would occur below the average cost base.
Aurono waits.
Common Misunderstandings
Section titled “Common Misunderstandings”“Price went up, why no sell?”
The price was still below average cost base.
“The sell trigger was met.”
Sell triggers are evaluated after the ACB rule.
“Can I override this behavior?”
No. The ACB rule is mandatory.
Relationship With Other Parameters
Section titled “Relationship With Other Parameters”Average cost base interacts directly with:
- Sell trigger (Rise %)
- Order sizing
- Allocated capital
These parameters must be understood as a single system.
What ACB Is Not
Section titled “What ACB Is Not”Average cost base is not:
- A stop-loss
- A take-profit target
- A prediction
- A market signal
It is a guardrail.
Key Takeaway
Section titled “Key Takeaway”Average cost base defines when selling is allowed, regardless of market movement.
Aurono sells only when:
- A candle has closed
- Sell trigger conditions are met
- The sell price is above average cost base
If no sell occurs, the safeguard simply held.
Next Page
Section titled “Next Page”Continue with:
Order Sizing
/strategy-builder/order-sizing
Order sizes determine how much Aurono trades once conditions are met.