FrankenStrategy

Strategy Intent

Trading Criteria Details
Market Suitability Bear
Difficulty Beginner
Strategy Type Scalping
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 is your classic scalping strategy that looks to make small profits out of pullbacks in the price action.
  • A pullback, also referred to as a retracement or consolidation, is a small temporary fall in a trading pairs price from its peak in a prevailing trend.
  • The strategy sorts out good pairs to trade with by scalping the pairs log quickly to find pairs that will DCA on the pullback.
  • This strategy deliberately uses DCA to increase its position sizes. Because of this it is a high risk strategy.

Entry Criteria

  • The strategy entry criteria makes use of an EMACROSS (8 fast, 13 slow) to try and buy as low as it can in the trade cycle.
  • It checks the volume is weakening using OBV, if so we expect price to fall.
  • It uses trailing buy 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.
  • Dollar Cost Averaging (DCA) is used if the trading pair drops to -1%. It then allows one coin at a time to be averaged down to allow the full use of the available trading capital to a maximum of 10% as per the rule above. The intent being to bring the average price of the trading pair down far enough to bring it into profit and be sold off.
  • DCA also employs the use of a Fibonacci number sequence as the buy trigger for each level of the DCA.
  • Pending Orders are not used.
  • 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 looks to scalp a minimum GAIN of 1.25%
  • This strategy makes use of RSI to see if the upward trend is strengthening.
  • It tries to sell the pair out of the Pairs Log but if that fails it uses the DCA log to reduce average price and sell out of the DCA log.
  • On the DCA side we assume the sale will take more time due to the averaging. We therefore add HIGHBB to the exit criteria to try and scalp higher profits.

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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  • frankenstrategy.txt
  • Last modified: 43 hours ago
  • by cryptocoyn