Monte Carlo

Strategy Intent

Trading Criteria Details
Market Suitability Bear or sideways market when volatility is low
Difficulty Intermediate
Strategy Type Mean reversion
Take Profit
DCA
Positive DCA
Pending Orders
Trailing Stop Loss
Published
Demo Server

Note:

  1. Click the cloud icon to view the demo server for this strategy;
  2. Note if the cloud icon is showing in red it means the demo server is not available right now;

Strategy Overview

  • “Monte Carlo” is a short term strategy designed to buy the dip during a downward trending market.

Entry Criteria

  • This strategy attempts to buy the dip in a downward trending market.
  • It looks for a short term Buy Signal using EMACROSS and LOWBB to determine if the buying conditions are correct.
  • Using LOWBB it confirms we are in the lower range.
  • It uses EMAGAIN to see if there is a dip in the price we can take advantage of.
  • It then uses STOCH to see if we are oversold to ensure we buy the dip.
  • Finally it trails the price to ensure we get to the bottom of that dip.
  • In a similar fashion to FrankenStrategy this strategy employs a scalping strategy to sort out pairs in order to find those pairs that will go in to DCA where the real profits are.
  • This strategy introduces the Tesla Buy Triggers an aggressive DCA buying strategy to decrease average price quickly and get pairs into profit.

Trade Management

  • The strategy applies the 2% and 10% rules of trading.
  • Position size is limited to 2% of risk capital per trade.
  • Only 5 trading pairs are active at any time to ensure no more than 10% of total risk capital is employed in trading at any time.
  • A trailing stop loss is employed rather than a fixed stop loss.
  • Take profit is employed to prevent loss of profits.

Exit Criteria

  • This strategy uses the GAIN to sell as soon as the current price goes above the GAIN threshold you set.
  • It uses trailing profit to ensure we sell as close as possible to the peak.

Strategy Tips

  • This strategy works in either a Bear or Sideways market. It is a good strategy to use in a Bear market because it doesn't need a lot of volatility to be able to pick good pairs to trade with, it scalps until it finds them.
  • See the Specific Strategies section regarding the Tesla DCA Triggers used by this strategy.
  • The key to this strategy is to ensure you do not overextend yourself by getting your max trading pairs and initial cost right to suit your trading budget.
  • Use the DCA calculator we provide to work these values out covering at least 4 levels of DCA for all your pairs. Once you have those values enter them into this strategy. The DCA calculator also ensures you have a 50/50 split on your trading budget to ensure you have sufficient budget for the sell side of this strategy.


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  • montecarlo.txt
  • Last modified: 14 days ago
  • by cryptocoyn