How to Program AWS Spot Instances to Strategically Bid So the Auction is Never Lost Until a Competitor Beats the Maximum I'm Willing to Pay...

How to Program AWS Spot Instances to Strategically Bid So the Auction is
Never Lost Until a Competitor Beats the Maximum I'm Willing to Pay...

I believe I'm in the right section of stack exchange to ask this. If not,
let me know.
I only use Amazon Web Services for temporary type hosting services, so the
spot instances are quite valuable to me. I would also just make an
instance and start and stop it - but - that doesn't necessarily fit my
bootstrapped budget sadly.
Anyways, it really kills me when someone outbids me on a spot instance I
have (I tend to go for the larger ones which there are fewer of available)
and I get randomly kicked off. I know or at least I believe there is a way
to program in something somehow to dynamically change your bidding price
to beat a potential competitor's if their's is higher than yours.
Now, I previously believed Amazon would just charge me for the highest
price right above the next lowest competitor automatically (eliminating
the need for this) - so if I bid too high, then I only pay what I would of
needed to in order to win and keep the auction. Essentially, I thought my
bid price was my max bid price.
Apparently, according to my bills and several experiments I've done - this
is not the case. They charge me for whatever I bid even when I know there
is no one else around to counter bid me.
I needed to clarify that, but let me get back to the main point:
Let's say I'm bidding $0.50, competitor comes in and bids 0.55 cents. I
get kicked off. I want to have it to where I'd set a maximum I'm willing
to pay (let's say $1.00 here), and then when competitor comes in and tries
to bid $.55, my bid is dynamically adjusted to beat his at $0.56 up until
he breaks my $1.00 threshold.
I've been reading the guides and although they are more or less
straightforward, I feel like they leave a few holes in them that end up
confusing me. Like, for instance, where do I input said command or when do
I do it? Maybe I'm just tech illiterate and need help deciphering these
guides.
A good start for someone willing to answer/help me decipher this problem
would be here:
http://docs.aws.amazon.com/AWSEC2/latest/UserGuide/spot-as-update-bid.html