ElDorado

Strategy Intent

Trading Criteria Details
Market Suitability All markets but will work faster in a bull market when volatility is higher
Difficulty Intermediate
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

  • This is a market maker strategy.
  • When the prices drop rapidly and the Bears control the market causing a market downturn you have to make your own market.

Entry Criteria

  • The strategy picks pairs that are rising using the SMACROSS with a long term uptrend indicator of (21 fast, 55 slow) as the buy signal.
  • It uses EMAGAIN to ensure we have a trading pair that is rising.
  • It then uses RSI to confirm we have a strong upward trend.
  • It doesn't use trailing as we want to get into the trade quickly before the upward trend reverses. As soon as we meet our entry criteria we buy.

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 waits for the market to come to you, it uses GAIN to set a profit target that you decide on and waits for the market to meet it.
  • It uses RSI to confirm we still have a rising trend and trailing to ensure we maximise profits.
  • It employs the take profit the DEFAULT_take_profit_percentage settings to sell if we are at 2% profit or better but haven't sold in over 10 minutes (2 candles) allowing for a half a percent threshold. If we exceed that threshold the 10 minute countdown resets.
  • If the trend reverses it will DCA the pair with a -10 trigger to reduce the average price on the pair while we wait for the upward trend on that pair to begin again.

Strategy Tips

  • This strategy works in all markets, it works well in a Bull or sideways market but will be slow in a Bear market as you are waiting for the market to come to you.
  • Volatility will be low in sideways and bear markets so it will take time to get pairs that are rising so patience is needed with this strategy. In a Bull market it will work much quicker due to high volatility.
  • 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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  • eldorado.txt
  • Last modified: 13 days ago
  • by cryptocoyn