¶ Equalize Strategy PRO ADVANCED
Equalize is a Strategy that intends to free up Balance, make profits on trades under your average entry and increase the drawdown an account can handle.
A visualization of how Equalize Strategy (EQ) could work is found below.
Scale out indicates each time we are selling. Possibly with a loss if calculated from our average entry price. But with a profit if calculated from the DCA entry price.
¶ What is 'Equalize Strategy'?
It is a method to make (partial) sells of your DCA bought coins.
Example:
- You bought 100 coins
- Your DCA bought 15 coins
- With EQ Strategy you can now sell that DCA bought part of 15 coins
Example of strategy where we want to sell the DCA amount for 1% profit, even if its below our average price:
- DEFAULT_DCA_sell_strategy_formula = (EQPRICE * 1.01)
- This will sell those 15 DCA coins the following way: (DCA buy price * 1.01) = 1% above the DCA bought price.
The result here is that you made a profit on a trade under your average entry, relatively to your DCA bought price and amount.
A new dynamic variable (SPNL) is introduced in PT to track the cumulative results of these (partial) sells based on your Sell History, which may be recorded as a loss or a profit.
SPNL (the total of all profits and losses of sells so far against the average entry of a coin since it's initial buy)
Combined with the variable DIFF, the SPNL stat will allow the PT user to track if the total of all sales combined (SPNL) and the current open Profit (DIFF) matches the sell criteria.
For example:
DEFAULT_DCA_SO1_take_profit_target = (DIFF + SPNL) > (COST * 0.01) && (DIFF + SPNL) > (TCV * 0.0008)
DEFAULT_DCA_SO1_take_profit_portion = 25
In this example a sale will take place, when the total of all sales combined with open profit, results in a total profit of at least 1% of the COST of the open position and 0.08% gain in TCV.
Many more dynamic criteria may be added at your own discretion.
Note: 'Equalize' is a highly advanced strategy and is VERY dynamic in nature. The user is assumed to be knowledgable with Dynamic Logic and formulas.
¶ THE PARAMETERS
- DEFAULT_DCA_equalize_strategy_enabled(true/false)
DCA-
If TRUE, PT will enable Equalize strategy
Dynamic properties that can be used:- EQPRICE (The Bought Price of DCA level currently being observed by EQ)
- EQAMOUNT (The Bought Amount of DCA level currently being observed by EQ)
- EQLEVEL (Current DCA level being observed by EQ Strategy to sell)
-
If FALSE, PT will disable Equalize strategy and do sells the usual way
-
# We want to enable EQ strategy:
DEFAULT_DCA_equalize_strategy_enabled = true
- DEFAULT_DCA_equalize_strategy_allow_partial_sell(true/false)
DCA
If TRUE, Equalize Strategy is allowed to make partial sells of each DCA level (Example: sell only 50% of each DCA level, and then continue to the next DCA level)
DEFAULT_DCA_equalize_strategy_allow_partial_sell = true
# We want to sell only 50% of each DCA bought amount
DEFAULT_DCA_equalize_strategy_sell_portion = 50%
- DEFAULT_DCA_equalize_strategy_type(LIFO / PRICE)
DCA
Define how you want EQ to sell your DCA buys- LIFO = Last in, First out in order, this will wait for each DCA bought price to be matched in order of buys before continueing to the next one
- PRICE = will match any DCA level bought price to EQPRICE, this will NOT wait in order of DCA level and will sell whatever DCA bought price is matched with EQPRICE
# We want to use PRICE type for EQ strategy:
DEFAULT_DCA_equalize_strategy_type = PRICE
- DEFAULT_DCA_equalize_strategy_start_level(integer, whole number)
This defines from which DCA level you want to use the EQ Strategy.
Say you only want EQ strategy to equalize all DCA levels except first 5 DCA levels.
# EQ sells will NOT take place on DCA level 1-5 AND the INITIAL buy
DEFAULT_DCA_equalize_strategy_start_level = 6
-
DEFAULT_DCA_equalize_strategy_allow_old_positions(true/false)
DCA
By default the full power of EQ can only be used on positions that were opened AFTER you install PT Version 2.5.20.
If EQ is enabled on older positions WITHOUT setting this to TRUE.
EQ will sell 100% always and only sell using LIFO.
New positions WILL however be able to use PRICE type and partial sell
(WARNING! If you have already equalized older positions, Do NOT enable this this method, EQ logic will get confused and could cause you to suffer losses) -
DEFAULT_DCA_equalize_strategy_reset_average_price(true/false)
Set this to true, so EQ strategy will reset your average price back to the previous average price once the DCA position is sold by EQ.
Note 1: Only works for positions opened AFTER this variable is enabled.
Enabling this options has the benefit that EQSELLS will be recorded better in the sell history and our STATS will make more sense again.
Note 2: If you use this option be aware that exchanges do NOT know about EQ and as such the average price displayed in the bot will be different than what your exchange will show
# EQ sells will reset our average price
DEFAULT_DCA_equalize_strategy_reset_average_price = true
- DEFAULT_DCA_equalize_strategy_reset_buy_times(true/false)
Set this to true, so EQ strategy will reset DCA buy times after each EQ sell.
So if we are currently at DCA 6, and EQ sells this level. Our DCA level will reset back to level 5
# EQ sells will reset our buy times back to a previous level
DEFAULT_DCA_equalize_strategy_reset_buy_times = true
¶ Examples
- We want to EQ sell only from DCA level 2 onwards, so we keep initial buy, and up to DCA level 2 and sell the rest with EQ strategy
- We want to sell each DCA bought amount (EQAMOUNT) with 1% profit
DEFAULT_DCA_equalize_strategy_enabled = true
DEFAULT_DCA_equalize_strategy_allow_partial_sell = true
DEFAULT_DCA_equalize_strategy_type = PRICE
DEFAULT_DCA_equalize_strategy_start_level = 2
DEFAULT_DCA_equalize_strategy_reset_average_price = true
DEFAULT_DCA_equalize_strategy_reset_buy_times = true
# If EQGAIN is true, EQ sells 100% of the EQAMOUNT
DEFAULT_DCA_equalize_strategy_sell_formula = B
DEFAULT_DCA_equalize_strategy_sell_portion = 100%
DEFAULT_DCA_A_sell_strategy = GAIN
DEFAULT_DCA_A_sell_value = 2
DEFAULT_DCA_B_sell_strategy = EQGAIN
DEFAULT_DCA_B_sell_value = 1
# Sell our position normally with 2% profit
DEFAULT_DCA_sell_strategy_formula = A
¶ GUI
When an EQ sell happens, the open position and sell history will display an extra line indicating the amount of profit you actually gained with that sell.
Note: This extra line is not displayed when using reset_average_price. This is because each EQSELL will be recorded in the sell history based on the EQPRICE and sell price.
Open Position
Sell History (ONLY if reset_average_price is not being used)
¶ Notes
1.If using trailing_profit to sell. If you do partial sells, trailing will reset after each sell in order to prevent issues with EQ.
2.You cannot use EQ together with pending orders. There will be unexpected behaviours
Do not enable EQ for a position if all of the DCA buys and Initial buy for a position are not present in the buys tab. Or if you are doing buys directly from the exchange.