¶ How to setup a buy strategy?
ProfitTrailer allows you to use one or more strategy at the same time in order to trigger a buy. With multiple strategies, you are able to look at different aspects of the trend of a coin before deciding if you should buy. Combining strategies properly can improve your profitability by a large margin vs using a single strategy.
¶ How do we understand when ProfitTrailer will trigger a signal?
This is hard to predict without any proper visualization. Luckily, ProfitTrailer has tons of custom indicators available on Tradingview, which allows us to apply them on a chart and see where exactly a buy or sell would have been triggered.
- You can find a list of the custom ProfitTrailer indicators by searching ProfitTrailer in Indicators located at the top of a chart on Tradingview. Or see the pinned-messages in #strategy-tradingview while using the ProfitTrailer Discord.
¶ Let's get started.
Let's take a look at a Tradingview chart of Bitcoin and apply the RSI indicator:
What we are looking at is a chart of BTC/PERP on the 2 hour timeframe (marked above in the white circle).
- To start with, I applied the RSI indicator on the chart using the Indicators menu at the top (marked in the white circle) and by searching "RSI".
- Next, I tweaked some of the settings using the gear icon on the indicator, until I found a solid entry and exit strategy for the RSI which fits my liking.
We see the bands of the RSI below and the values of those bands at the right side. Saying 40 and 60, which seems to me like a proper entry and exit strategy when comparing those with the price action of BTC.
Please keep in mind that these examples are pure educational and not intended for actual guidance. Do your own research and find out which values or indicators fit best to your own liking and style of trading.
¶ Step 1. Setting up a buy strategy.
Let's say you've spend enough time trying out different possibilities, analyzing different values and timeframes,.. and finally came up with a method which you think is a good bet. Then it's finally time to put them into ProfitTrailer and let the bot do it's thing!
- You can set buy strategies in the Pairs tab located in Active Config.
Using the example above: we saw that it could be interesting to enter a trade when the RSI values goes below 40, as usually it marks a bottom and price retraces after that. So let's use those values in ProfitTrailer:
DEFAULT_A_buy_strategy = RSI
DEFAULT_A_buy_value = 40
This means ProfitTrailer will attempt to buy a coin when the RSI dips below 40 as indicated on the chart above (in other words every time I marked a green circle on the chart).
As for the exit strategy, we could also use the same example and sell when the RSI goes above 60. According to the chart it seems like the price usually goes down once the RSI has reached 60 (notice the red circles).
DEFAULT_A_sell_strategy = RSI
DEFAULT_A_sell_value = 60
DEFAULT_A_sell_value_limit = 100
Here we use value_limit so ProfitTrailer would look to sell between 60 and 100. If we don't use value_limit, ProfitTrailer would only look to sell under 60 which is not our intention here.
Click the Save icon at the top of your config and you're all set!
Please keep in mind that these examples are pure educational and not intended for actual guidance. Do your own research and find out which values or indicators fit best to your own liking and style of trading.
¶ Step 2. Setting up the right indicator settings for our buy strategy.
Next up, we need to make sure we set up the right indicator settings linked to our buy strategies.
In order to do that, go to the Indicators tab located in Active Config and set the right values for the corresponding buy strategy. More info about the Indicators here.
- Using our example above, we would need the following lines in our Indicators tab:
RSI_candle_period = 7200(because 7200 seconds = 2 hours and that's what we were looking at in the chart above).
RSI_length = 14(because that's the length we used in the example above).
Click the Save icon at the top of your config and you're all set!
Now that all of that is done, our indicator should work identically to what we've visualized in our example, and ProfitTrailer should buy exactly where I marked the green circles, and sell where I marked the red circles.
Because our lines in Pairs seem to correspond with our Tradingview settings, and the ones in Indicators seem to correspond with the Tradingview settings aswell.
¶ Step 3. Linking our buy strategy (or strategies) to a buy formula.
Now we've got everything set up to our liking, we can finally move on to the final part and setup the right formula so ProfitTrailer triggers what we intend to use.
This also happens in the Pairs tab located in Active Config. You want to align your buy strategies with your buy formula in order to trigger the right one.
-
If you want to count on RSI independently, you use
DEFAULT_buy_strategy_formula = A.
(Becausestrategy Ais RSI in our example). -
If you want to rely on RSI vs another strategy, you use
DEFAULT_buy_strategy_formula = A && B
(Bbeing the letter of another buy strategy you made). -
If you want ProfitTrailer to choose between one of both, you use
DEFAULT_buy_strategy_formula = A || B
Click the Save icon at the top of your config and you're all set!
Remember you can add as many buy strategies as you wish! There are countless possibilities.
But in order to learn we suggest to take it slow and easy so you fully understand the workflow of ProfitTrailer.
Attention: We always suggest to run your bot in Test Mode for a few weeks before really taking off. Just to make sure there are no mistakes left in your code and to avoid unnecessary losses or wrong entries and/or exits.