Old Faithful

Strategy Intent

Trading Criteria Details
Market Suitability All markets but will work faster in a bull market when volatility is higher
Difficulty Beginner
Strategy Type Retracement trading
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

  • This strategy allows us to trade in any market conditions by looking for retracements.
  • A retracement is a when a trading pairs price rises or falls versus the prevailing trend. Note this is not the same as a complete reversal where you would see large price changes, where the trend changes direction entirely.

Entry Criteria

  • The strategy entry criteria makes use of EMAGAIN to pick pairs at the bottom of their trade cycle.
  • It uses RSI to confirm we are at the bottom of the trade cycle to ensure we buy the dip.
  • Finally it trails the price to ensure we get the best buy.
  • It may not buy during Bitcoin mooning but there should be sufficient pairs in your DCA log to allow you to trade through those times.

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 define the minimum profit we should take.
  • It then looks to the RSI to confirm the upward trend.
  • Finally it trails the price to ensure we get the maximum profits possible.

Strategy Tips

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