This is an old revision of the document!


Base Settings

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 Scalping
Take Profit
DCA (optional)
Positive DCA
Pending Orders (optional)
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 provides a bare bones set of settings from which you can start to explore the world of automated trading with ProfitTrailer. These settings have all the standard protection mechanisms built into them and all the basic settings you will need to get started.
  • This is a scalping strategy that aims to be in and out of trades as quickly as possible (depending upon prevailing market conditions at the time) taking small profits along the way.
  • Trading is all about carefully considering your options and creating a trading plan that will match your style of trading and risk appetite. This strategy gives you three options to consider:
    1. whether to use a whitelist of specific trading pairs (coins) or just trade all pairs;
    2. whether to use Dollar Cost Averaging (DCA) to reduce your trading pairs average price should a trade go bad to bring it back into profit while at the same time increasing your position size; and
    3. whether to use Pending Orders to try and recover bad trades without additional investment into them and potentially increase your position size using combined trading pairs when the bot purchases more of the same coin later.

Entry Criteria

  • The strategy entry criteria only purchases trading pairs if the 24 hour percentage change is positive.
  • It looks for pairs that are in their LOWBB range and with low RSI indicating they are oversold.
  • It uses a lower initial purchase price of approx. $20 with a large maximum trading pairs value (10) to load up the queue of potential trading pairs to be scalped.
  • If a trade starts to fail it tries to recover it using both DCA and Pending Orders features to increase your trades position size and attempt to reduce average price to bring the pair back into profit. These are both advanced features and are disabled by default in the base settings. The strategy will run just fine without these optional features enabled and all trading action will happen in the Pairs log. Please see the Strategy Tips below for more details on these optional features.
  • Trailing buy is turned on to ensure we buy as close to the bottom of the trade cycle as possible.

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 a small GAIN percentage and a MACD cross reversal (from positive to negative) to determine when to sell.
  • It monitors the Pending Orders to see if the pairs can be combined (at 0.25% combined profit) with new purchases of the same trading pair.
  • The strategy also makes use of Take Profit features at 1.25% profit on a 10 minute timeout with 0.25% movement as the trigger.
  • Trailing is turned off as we want the MACD cross to control the sale. We use GAIN to force the trading pair through the trade cycle again if the MACD cross happens before the GAIN is reached. If we didn't catch it this time we may the next time and failing that, if enabled, the DCA or Pending Orders will catch it.

Strategy Tips

  • When you first start this strategy it may take a long while to load up the Pairs queue depending upon prevailing market conditions so patience is required.
  • One option you have is to use a whitelist of trading pairs, here is an example one using the Top 20 trading pairs on CoinMarket Cap. To use it go into the advanced configuration screen and comment out the line that looks like this enabled_pairs = ALL and uncomment the line below it that looks like this: enabled_pairs = ETH, XRP, BCH, EOS, XLM, LTC, ADA, XMR, TRX, IOTA, NEO, ETC, XEM, XTZ, ZEC, VET, BTG, MKR, OMG, ZRX, DCR, QTUM, ONT, LSK, BAT, TUSD
  • If you choose to enable the optional advanced features of DCA and Pending Orders you need to uncomment the respective settings for both using the advanced configuration screen as follows:
    • You can choose to enable the advanced feature of Dollar Cost Averaging if you want to do so. Note: this will increase your overall exposure per trade so read up on DCA in the Wiki and understand what Dollar Cost Averaging does first. To enable it uncomment the line below it that looks like DEFAULT_DCA_enabled = -1 and comment out the line above it that looks like this DEFAULT_DCA_enabled = false.
    • You can choose to enable the advanced feature of Pending Orders if you want to do so. This enables you to have the exchange sell trading pairs that have failed to trade successfully this time around and allow you to carry on trading with other trading pairs. Read up on Pending Orders in the Wiki first before you enable it. To enable it comment out the line above it that looks like DEFAULT_pending_order_price_drop_trigger = 0 and uncomment the line below it that looks like this DEFAULT_pending_order_price_drop_trigger = -5.
  • Note: if you do enable these optional features you run the risk of:
    • holding trading pairs for a long time, depending on market conditions. So please consider which trading pairs you are comfortable holding and consider running a whitelist of those trading pairs only; and
    • tying up your trading risk capital for a long time in the trading pairs you choose to hold.
  • If enabled the DCA and Pending settings will work as follows:
    • If a trading pair starts to fail it tries to recover it quickly with DCA to 5 levels so maximum exposure per trading pair is approx. $120 in normal circumstances. When a trade starts to fail your exposure may be greater as it uses dollar cost averaging to try and recover the pair and Pending Orders which will increase position sizes when combined with new purchases of the same trading pair.
    • The DCA trigger is set at -1 and uses LOSS to do the buys to ensure we are actually reducing the combined average cost of the trading pair. The LOSS is combined with a 10 minute re-buy timeout to ensure we are buying at the lowest possible price. The use of LOSS also prevents us purchasing more of a trading pair if the trading pair starts to rise in value again as doing so (positive DCA) would put us back into a loss situation which the trading pair may not recover from.
    • Pending Orders are created if the trading pair continues to fail and goes below -5%.
  • 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.


TOP


  • basesettings.1557371879.txt.gz
  • Last modified: 3 weeks ago
  • by cryptocoyn