The Three Amigos

Strategy Intent

Trading Criteria Details
Market Suitability Bull market when volatility is at its highest.
Difficulty Advanced
Strategy Type Trend 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

  • VIVA LOS AMIGOS! :-)
  • This strategy is based on three of our ProfitTrailer users requests / suggestions in the strategy channel on the support discord. Frankensteiner suggested to buy on a bearish cross and sell on a bullish cross. DAOBrownie suggested using the MACD to do the same. And Thys suggested that the BBWIDTH would help with oscillating / sideways markets. So I thought I would put them all together and form a new strategy for everyone.
  • Now I just happened to be watching a rerun of a particular Steve Martin, Chevy Chase, Martin Short movie at the time, hence the name of this strategy. Together they are the Three Amigos, all for one and every man for himself :-)

Entry Criteria

  • The strategy entry criteria buys on an uptrend using the Frankensteiner Cross.
  • It uses the DOABrownie MACD to confirm this uptrend.
  • It uses Thys BBWIDTH to test the strength of the uptrend.
  • I added EMAGAIN, STOCH, and RSI to further confirm the upward trend.
  • This strategy does not use DCA for pairs that wont sell, instead it puts pairs that have reached -3% into Pending Orders to clear them over time. It relies on having sufficient capital to keep purchasing pairs so that the Pending pairs will clear over time as more of that pair are purchased and sold.
  • If the profit target is exceeded this strategy uses positive DCA (Anti-DCA) at a 5% profit target in order to improve profits by backing the winners and increasing our position size on the trade. It will toss the losing trades using Pending Orders.
  • If the upward trend continues the trading pair should quickly recover from this loss or we will attempt to DCA in the normal manner to reduce its average cost and hopefully bring it back into profit or move it to a pending order if we cant recover it.
  • Make sure to avoid getting overextended by using the DCA calculator we provide to workout max trading pairs and initial cost settings to suit your trading budget. Ensure you can cover at least 4 levels of DCA for all your trading pairs. Once you have those values enter them into this strategy. The DCA calculator also ensure you have a 50/50 split on your trading budget to ensure you have sufficient budget for the sell side of this strategy.
  • Trailing buy is turned off to ensure we buy into the upward trend as soon as it is recognised.

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 GAIN to sell as soon as the current price goes above the GAIN threshold you set.
  • It uses a short term EMACROSS and trailing GROW to maximise the profit.
  • The DCA sales strategy is different to the Pairs sell strategy as with Pairs we are trying to get the pairs to go into DCA so we make it harder to sell as it is going up.

Strategy Tips

  • This strategy while it works in all market conditions is best suited to a bull market.
  • If you want to speed up the sales and just scalp without trying for the higher profits just remove the EMACROSS and MACD and just leave the GAIN in Pairs sell strategy
  • Positive DCA may put the pair at a temporary loss as it increases your average cost. The pending threshold in DCA compared with Pairs is larger for that reason.
  • 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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  • thethreeamigos.txt
  • Last modified: 14 days ago
  • by cryptocoyn