Specific Strategies


Purchase Same Number Of Coins Per DCA Level

Sets the per trigger level percentage of TCV to purchase when making a DCA buy.

Purchase the same number of coins at each DCA level effectively doubling down but in a more sustainable manner than the standard ANDERSON technique which does a direct doubling of the cost per DCA level and therefore is much more costly to your trading budget.

By purchasing the same number of coins per DCA level this technique allows you to stretch your trading budget out much further and achieve deeper DCA levels if required.

DEFAULT_DCA_buy_percentage_1 = 100
DEFAULT_DCA_buy_percentage_2 = 50
DEFAULT_DCA_buy_percentage_3 = 33.3333333333333
DEFAULT_DCA_buy_percentage_4 = 25
DEFAULT_DCA_buy_percentage_5 = 20
DEFAULT_DCA_buy_percentage_6 = 16.6666666666667
DEFAULT_DCA_buy_percentage_7 = 14.2857142857143
DEFAULT_DCA_buy_percentage_8 = 12.5
DEFAULT_DCA_buy_percentage_9 = 11.1111111111111
DEFAULT_DCA_buy_percentage_10 = 10
DEFAULT_DCA_buy_percentage_11 = 9.09090909090909
DEFAULT_DCA_buy_percentage_12 = 8.33333333333333
DEFAULT_DCA_buy_percentage_13 = 7.69230769230769
DEFAULT_DCA_buy_percentage_14 = 7.14285714285714
DEFAULT_DCA_buy_percentage_15 = 6.66666666666667
DEFAULT_DCA_buy_percentage_16 = 6.25
DEFAULT_DCA_buy_percentage_17 = 5.88235294117647
DEFAULT_DCA_buy_percentage_18 = 5.55555555555556
DEFAULT_DCA_buy_percentage_19 = 5.26315789473684
DEFAULT_DCA_buy_percentage_20 = 5
 
... through to 100 levels


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Tesla DCA Triggers

Implements a Tesla sequence for doing DCA buys

Nikola Tesla the worlds greatest inventor who is known as the father of modern electricity studied patterns in nature and found a pattern similar to the fibonacci sequence which he applied to the creation of his electrical coils known today as Tesla Coils.

Natures patterns are often applied to the financial markets by day traders as markets are driven by the emotions of millions of people.

For more details on Nikola Tesla see here: https://en.wikipedia.org/wiki/Nikola_Tesla

The Tesla DCA triggers are based on Nikola Tesla's work. Tesla talks about the physical world in terms of Energy, Frequency and Vibrations. The number pattern he found in nature were related to that work.

Fibonnaci is a common pattern from nature that is applied to financial markets. I am doing similar with Tesla's pattern.

Strictly speaking I have the numbers out of order but I am adapting it to use with ProfitTrailer's DCA, it should really be 1,2,4,8,7,5. Those numbers represent the physical world and repeat themselves through to infinity. So if you wanted to add more levels you would just repeat the sequence.

In Tesla's work the numbers 3, 6, 9 represent the meta-physical world i.e. the magnetic field produced by an electrical coil, its something you cant see but you can see its affects on other materials like metal being drawn to it. The 3, 6, 9 govern the 1,2,4,8,7,5 at the quantum sub-atomic level and flip between positive and negative. Tesla found that 9 was a key number that governed the behaviour of all the other numbers.

If you want to do more research on this its from a branch of Mathematics called Vortex Mathematics and everything gets brought back to a single digit.

The 12 acts as a catch-all for our DCA purposes but is mentioned in Telsa's work on “Composites and Primes a Map to Multiplication”.

I have used this sequence to successfully clear 34 very old and deep DCA's left over from some test settings on the demo server when I first released this DCA sequence. To do that I set the deepest DCA's (double digit ones) to sell only mode and let the bot work on your smallest DCA's (single digit ones) first to free up capital and then turn off SOM on one deep DCA at a time until it clears and rinse and repeat until you reach the deepest one.

Here is a video that explains the Vortex maths behind it:

https://www.youtube.com/watch?v=B4ovxpx_I_Y

Like all the default settings provided here though they are a starting point to get you going you can take it or leave it, your choice.

So feel free to tweak these numbers to suit your style of trading,

DEFAULT_DCA_buy_trigger_1 = -1
DEFAULT_DCA_buy_trigger_2 = -2
DEFAULT_DCA_buy_trigger_3 = -4
DEFAULT_DCA_buy_trigger_4 = -5
DEFAULT_DCA_buy_trigger_5 = -7
DEFAULT_DCA_buy_trigger_6 = -8
DEFAULT_DCA_buy_trigger_7 = -3
DEFAULT_DCA_buy_trigger_8 = -6
DEFAULT_DCA_buy_trigger_9 = -9
DEFAULT_DCA_buy_trigger_10 = -12


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Fibonacci DCA Triggers

Implements a Fibonacci sequence strategy for doing True Martingale DCA buys

Each level in the sequence represents the loss percentage required before a DCA buy can take place.

All configured buy strategies must be true and you must have lost at least this amount for a buy to take place.

If a trading pair has DCA'd (3) times then it will use the _4 values for its next actions.

The optional DEFAULT_DCA_buy_trigger will be used if a _x trigger does not exist for the next DCA action.

Natures patterns are often applied to the financial markets by day traders as markets are driven by the emotions of millions of people.

For more details on Fibonacci Sequences see here: https://en.wikipedia.org/wiki/Fibonacci_number

#DEFAULT_DCA_buy_trigger_1 = -1
#DEFAULT_DCA_buy_trigger_2 = -1
#DEFAULT_DCA_buy_trigger_3 = -2
#DEFAULT_DCA_buy_trigger_4 = -3
#DEFAULT_DCA_buy_trigger_5 = -5
#DEFAULT_DCA_buy_trigger_6 = -8
#DEFAULT_DCA_buy_trigger_7 = -13
#DEFAULT_DCA_buy_trigger_8 = -21
#DEFAULT_DCA_buy_trigger_9 = -34
#DEFAULT_DCA_buy_trigger_10 = -55


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Positive DCA aka Anti-DCA or Anti-Martingale

What is DCA? In short, it is a method for lowering the average price of a losing trade, making the recovery easier as the price needs only to recover to the new lower average buy price. For a long, more detailed explanation, read here. Using DCA increases your holdings and will result in significantly larger positions in each coin.

What is Positive DCA or Anti-DCA? Positive DCA is the opposite of DCA and is a means of increasing our position size and resulting profits on winning trades. It is best used in trending markets when buying into a bullish uptrend. The idea being to cut losing trades quickly and back the winning trades.

You need to be careful with Positive DCA because as as soon as it DCA's it will take a pair that is in profit into a loss. Because you are buying into an uptrend it increases you average cost so can put you in a loss initially until the pair recovers.

Here is an example composite timeline of the effects of Positive DCA on a trade:

In this example we show the trading pair BTC-QWARK as it goes through an 8% bull run. When this trading pair gets sent to the DCA log it has reached 5.18% in profit on the trade our bot has taken. If the bot were to sell this right now it would bring 5.18% of USD$68.13 or USD$3.53 in profit (Note: we are using the order book value to provide a more realistic example). Not a bad profit but we could have done better as the uptrend was still going when we sold.

In this case we have applied Positive DCA to the trade. The DCA buy criteria are met and the first double down the bot does increases the average price of the pair and the pair drops from 5.18% to 0.41% in profit. Because we bought the pair on a bullish uptrend it recovers slightly to 0.54% profit. Our buy criteria are met again and another double down takes place. This time the pair drops into a loss of -1.14% again due to the bullish uptrend it recovers slightly to -0.88%. The bullish uptrend continues and the bot's DCA sell criteria are met so the pair sells off for 2.19% of USD$288.22 or USD$6.31 in profit.

Here is an example composite timeline of the effects of Positive DCA on a trade:

Note how the pair went from 2.8 profit to -0.64 and then recovered to 2.95 with an increased position size.

In this example we show the trading pair BTC-EDG as it goes through an 2.58% bull run. When this trading pair gets sent to the DCA log it has reached 2.8% in profit on the trade our bot has taken. If the bot were to sell this right now it would bring 2.8% of USD$66.32 or USD$1.86 in profit (Note: we are using the order book value to provide a more realistic example).

The bullish uptrend continues, in this case much quicker than BTC-QWARK's did as evidenced by the faster recovery time of the BTC-EDG pair. As the pair rises in value the bot applies positive DCA and eventually the bot's DCA sell criteria are met so the pair sells off for 2.95% of USD$134.66 or USD$3.97 in profit.

By applying Positive DCA we have significantly increased our profits on these two trades.

Always use some form of money management to mitigate risk when using Positive DCA in order to avoid “catching a falling knife” as the upward trend can reverse quickly. i.e. Stop Loss or Normal DCA or Pending Orders.


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The 2 period RSI

The 2RSI indicator as it is known makes the values more volatile. It is based on 20 years of backtesting data done in the financial markets by Laurence A. Connors in his book titled “How Markets Work - a quantitive guide to Stock Market behaviour”.

To summarise the findings of the book - They started their research in 2003 and up until that time most of the research had focused on the 14 period RSI everyone knows from Welles Wilder, the original creator of the RSI indicator back in the 1970’s.

In their research they took data going back to 1989 and ran a simulator over it to see how the RSI indicator would perform at lower periods finding that the 2 period RSI performed best.

The 2 period RSI has also come to be known as the 2RSI oscillator.

They then published their findings in 2004. In their latest edition published in 2012 they found that it is very good at predicting short term movements in trading pairs and the average gains per trade and the percentage of winning trades were the highest of all the indicators they tested in their book.

They concluded that if they only had the choice of picking one indicator to day trade with the 2RSI would be the one.

The settings use this to introduce / identify volatility during Bear or sideways market conditions where signals are typically weak.


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  • specific_strategies.txt
  • Last modified: 9 weeks ago
  • by cryptocoyn