Luna / TetherUSEducacional
HOW-TO: Accumulation Strategy
Atualizado
In this idea I will make an in-depth tutorial on how to use the Accumulation Strategy and how to automate it.
█ PRESENTATION
The strategy is in the form of an invite-only script providing backtesting and alerts.
Here is a link to the script page:
Goals
• Steady profits. Smalls profits over time and no drawdown as long as you don't sell in loss.
• Peace of mind. It is meant to be a "set it up once and let it run for a while" automated strategy.
• No loss. Never sell in loss.
Drawbacks
• Small profits. No leverage, just spot trading.
• Lengthy trades. Trades can take up to several days or even weeks in worst case scenario. We will see how to avoid that.
Strategy
• Use volatility. Take advantage of small waves in the market.
• Buy the dips. Use a combination of technical indicators to buy bottoms or oversold prices.
• Accumulation. Buy small amounts several times as price moves to better position yourself.
• Take profit from total volume. Sell everything once price is in profit at the configured percentage value.
█ BACKTESTING
Backtesting is the process of creating a strategy.
Finding a good pair
• By Market Cap. Take a category you are comfortable with (DeFi, Metaverse, DAO, etc) then look at coins in the top 10 market cap.
• Volatility. The more volatile the coin is, the better.
• Ascending/Sideways trend. This is where the strategy will work the best. We will see just below how to filter off bear markets.
• Pick a timeframe. Usually from 5m to 30m, can be higher or lower. I look at the average bar, I like something around 0.5-1% bar height, the chart should not have too much noise, otherwise go higher timeframe. Though not too high, since we want to take advantage of the volatility.
Build your entries
You first have to create "entries" that will then end up being a buy signal, after passing through some optional filters.
• Entry settings
• Go Long/Go Short
The indicator allows to trade both sides of the market. In these examples, I will only go long-only for simplicity.
• Max active deals
This is the maximum consecutive buy signals allowed for the strategy. Example with 10: the strategy will buy up to 10 times until take profit is hit.
• Minimum bar delay between deals
Puts a minimum delay between each entry signal, in bars.
• Minimum price difference in % between deals
Sets a minimum price percentage between each entry signal. Leave at 0 to disable.
• STOCH & RSI entries
Creates entries when the RSI or STOCH crosses below a configurable value. The length and resolution of the oscillators are configurable.
• Other entries
Signals using some of my other custom indicators are BUILT-IN:
• Top & Bottoms
• Higher lows, Lower lows
• RSI Divergences
Entries are combined using a OR logical gate. I usually go with RSI and STOCH entries on higher timeframe using the resolution input, then add Top & Bottoms or Higher lows if I feel like it needs more entries.
Once you have chosen a combination of entries, let's move on to the filters.
• Trend Filter
You can pick a trendline from a list, usually a simple EMA 200 will do the trick. Using slope change or price cross, it will filter off entries if the market wave is bearish, thus avoiding taking risky trades.
• MTF Trend Filter
The same thing, but higher timeframe. It is used to filter with the market wave, meaning the more global trend. It is a good habit to combine the 2 trend lines to drastically reduce the risk. The Adaptive Tilson T3 is one of my favorites, combined with the CROSSOVER condition.
• RSI filter
Useful with entries other than RSI to filter overbought entries. Use a higher timeframe to filter more aggressively.
I would advice to use all 3 filters if you can. It will prevent getting into lengthy trades as we will see below.
Adjusting
• Backtest parameters
First you should go to the backtest parameters tab. Here is what is used in this example:
• Initial capital: 1000 €
• Order size: 100 € (the max deals is 10 here, total deals should not exceed initial capital)
• Pyramiding: 10 (the number of max deals)
• Commission: 0.075 % (Binance spot trading)
• Take Profit
Configure the take profit, in price %. I usually go with something from 1 to 4 %. In some cases, activating the trailing TP can be interesting.
• Backtest results
In addition to the strategy tester, the indicator has a backtest panel containing useful information. Here are some of it:
• Net Profit (% and fixed)
Useful to see how volatile a pair is compared to others.
• Avg # Bars in a deal
Average number of bars a trade can take to be completed. < 100 - great, > 100 - can be improved, > 200 - bad
• Avg # Days in a deal
Same information but in days.
• Max # days in a deal
Maximum number of days a trade took to be completed. < 30 - great, > 30 - can be improved, > 60 - bad
Example of settings that can be improved:
The Avg # bars and Max # Days in a deal are flashing red and orange. It means it can be improved.
By adding the 3 filters, increasing the stoch entries timeframe and reducing the take profit to 3%, we are getting a much more secure strategy:
All the settings are in green, we know that over 421 days, the maximum days a trade took is 13.78, and a trade takes 1 day in average.
█ AUTOMATION
When you subscribe on my website, you unlock access to the indicators but also an automation system for Binance.
The system is using the indicator alerts to automatically place orders on Binance using their SPOT Trading API. You can find a tutorial here.
Create a bot
The first step is to create a bot for your strategy.
Make sure you have enough capital in your account for the strategy.
Set the order size/quantity with the same value as in the indicator backtest parameters.
Create the alert
I recommend to create one chart layout per strategy.
Once you are done setting up the indicator, set the alert messages. You will find the text fields at the bottom of the indicator input settings.
You will typically need to fill "Long Entry" with the buy message, and "Long Take Profit" with the sell message.
Once you have done that, save your chart.
Click add alert on the indicator.
Select the condition "Alert() function calls only".
Tick "Webhook URL" and set the URL. It can be the one from my bot system or if you use another bot system with webhooks it will work too.
Give your alert a name and click create.
Make sure the alert is created in the alert tab.
The alert will save the indicator, settings and timeframe at the moment you create it. If you decide to change an indicator setting, you must remake the alert.
Fees
If you trade on Binance, I recommend to enable BNB Spot trading fees, and always have a few BNB on your account to pay for the fees.
That way, you can use a sell 100% quantity order without needing to take fees into account, unless you are using the strategy to trade BNB. In this case, use something like sell 99% in your sell message.
Supervise
Once your strategy is running, you can supervise it in the strategy tester in real time, in the alert logs and in the bot logs.
═════════════════════════════════════════════════════════════════════════
█ SCRIPT ACCESS
Indicator and automation tools access can be purchased on my website. The link is in my signature below.
█ SAMPLE USE CASES
I will update this HOW-TO idea whenever I backtest a new pair, sharing the configuration and a link to a shared chart that you can copy and edit yourself.
Example on MANA/USDT:
Link to the chart: tradingview.com/chart/VgBXN0ZC/
Thanks for reading. More to come below.
█ PRESENTATION
The strategy is in the form of an invite-only script providing backtesting and alerts.
Here is a link to the script page:
Goals
• Steady profits. Smalls profits over time and no drawdown as long as you don't sell in loss.
• Peace of mind. It is meant to be a "set it up once and let it run for a while" automated strategy.
• No loss. Never sell in loss.
Drawbacks
• Small profits. No leverage, just spot trading.
• Lengthy trades. Trades can take up to several days or even weeks in worst case scenario. We will see how to avoid that.
Strategy
• Use volatility. Take advantage of small waves in the market.
• Buy the dips. Use a combination of technical indicators to buy bottoms or oversold prices.
• Accumulation. Buy small amounts several times as price moves to better position yourself.
• Take profit from total volume. Sell everything once price is in profit at the configured percentage value.
█ BACKTESTING
Backtesting is the process of creating a strategy.
Finding a good pair
• By Market Cap. Take a category you are comfortable with (DeFi, Metaverse, DAO, etc) then look at coins in the top 10 market cap.
• Volatility. The more volatile the coin is, the better.
• Ascending/Sideways trend. This is where the strategy will work the best. We will see just below how to filter off bear markets.
• Pick a timeframe. Usually from 5m to 30m, can be higher or lower. I look at the average bar, I like something around 0.5-1% bar height, the chart should not have too much noise, otherwise go higher timeframe. Though not too high, since we want to take advantage of the volatility.
Build your entries
You first have to create "entries" that will then end up being a buy signal, after passing through some optional filters.
• Entry settings
• Go Long/Go Short
The indicator allows to trade both sides of the market. In these examples, I will only go long-only for simplicity.
• Max active deals
This is the maximum consecutive buy signals allowed for the strategy. Example with 10: the strategy will buy up to 10 times until take profit is hit.
• Minimum bar delay between deals
Puts a minimum delay between each entry signal, in bars.
• Minimum price difference in % between deals
Sets a minimum price percentage between each entry signal. Leave at 0 to disable.
• STOCH & RSI entries
Creates entries when the RSI or STOCH crosses below a configurable value. The length and resolution of the oscillators are configurable.
• Other entries
Signals using some of my other custom indicators are BUILT-IN:
• Top & Bottoms
• Higher lows, Lower lows
• RSI Divergences
Entries are combined using a OR logical gate. I usually go with RSI and STOCH entries on higher timeframe using the resolution input, then add Top & Bottoms or Higher lows if I feel like it needs more entries.
Once you have chosen a combination of entries, let's move on to the filters.
• Trend Filter
You can pick a trendline from a list, usually a simple EMA 200 will do the trick. Using slope change or price cross, it will filter off entries if the market wave is bearish, thus avoiding taking risky trades.
• MTF Trend Filter
The same thing, but higher timeframe. It is used to filter with the market wave, meaning the more global trend. It is a good habit to combine the 2 trend lines to drastically reduce the risk. The Adaptive Tilson T3 is one of my favorites, combined with the CROSSOVER condition.
• RSI filter
Useful with entries other than RSI to filter overbought entries. Use a higher timeframe to filter more aggressively.
I would advice to use all 3 filters if you can. It will prevent getting into lengthy trades as we will see below.
Adjusting
• Backtest parameters
First you should go to the backtest parameters tab. Here is what is used in this example:
• Initial capital: 1000 €
• Order size: 100 € (the max deals is 10 here, total deals should not exceed initial capital)
• Pyramiding: 10 (the number of max deals)
• Commission: 0.075 % (Binance spot trading)
• Take Profit
Configure the take profit, in price %. I usually go with something from 1 to 4 %. In some cases, activating the trailing TP can be interesting.
• Backtest results
In addition to the strategy tester, the indicator has a backtest panel containing useful information. Here are some of it:
• Net Profit (% and fixed)
Useful to see how volatile a pair is compared to others.
• Avg # Bars in a deal
Average number of bars a trade can take to be completed. < 100 - great, > 100 - can be improved, > 200 - bad
• Avg # Days in a deal
Same information but in days.
• Max # days in a deal
Maximum number of days a trade took to be completed. < 30 - great, > 30 - can be improved, > 60 - bad
Example of settings that can be improved:
The Avg # bars and Max # Days in a deal are flashing red and orange. It means it can be improved.
By adding the 3 filters, increasing the stoch entries timeframe and reducing the take profit to 3%, we are getting a much more secure strategy:
All the settings are in green, we know that over 421 days, the maximum days a trade took is 13.78, and a trade takes 1 day in average.
█ AUTOMATION
When you subscribe on my website, you unlock access to the indicators but also an automation system for Binance.
The system is using the indicator alerts to automatically place orders on Binance using their SPOT Trading API. You can find a tutorial here.
Create a bot
The first step is to create a bot for your strategy.
Make sure you have enough capital in your account for the strategy.
Set the order size/quantity with the same value as in the indicator backtest parameters.
Create the alert
I recommend to create one chart layout per strategy.
Once you are done setting up the indicator, set the alert messages. You will find the text fields at the bottom of the indicator input settings.
You will typically need to fill "Long Entry" with the buy message, and "Long Take Profit" with the sell message.
Once you have done that, save your chart.
Click add alert on the indicator.
Select the condition "Alert() function calls only".
Tick "Webhook URL" and set the URL. It can be the one from my bot system or if you use another bot system with webhooks it will work too.
Give your alert a name and click create.
Make sure the alert is created in the alert tab.
The alert will save the indicator, settings and timeframe at the moment you create it. If you decide to change an indicator setting, you must remake the alert.
Fees
If you trade on Binance, I recommend to enable BNB Spot trading fees, and always have a few BNB on your account to pay for the fees.
That way, you can use a sell 100% quantity order without needing to take fees into account, unless you are using the strategy to trade BNB. In this case, use something like sell 99% in your sell message.
Supervise
Once your strategy is running, you can supervise it in the strategy tester in real time, in the alert logs and in the bot logs.
═════════════════════════════════════════════════════════════════════════
█ SCRIPT ACCESS
Indicator and automation tools access can be purchased on my website. The link is in my signature below.
█ SAMPLE USE CASES
I will update this HOW-TO idea whenever I backtest a new pair, sharing the configuration and a link to a shared chart that you can copy and edit yourself.
Example on MANA/USDT:
Link to the chart: tradingview.com/chart/VgBXN0ZC/
Thanks for reading. More to come below.
Nota
ETH/USDTLink to the chart: tradingview.com/chart/dkNjCqT6/
Nota
SOL/USDTLink to the chart: tradingview.com/chart/DFqd1k15/
Nota
ATOM/USDTLink to the chart: tradingview.com/chart/02REwlQn/
Nota
LUNA/USDTLink to the chart: tradingview.com/chart/GcYLsuW9/
Nota
BTC/USDTLink to the chart: tradingview.com/chart/MAdX1VhG/
🔥Get the Cyatophilum Indicators today and automate them on Binance! => blockchainfiesta.com/strategies/
Discord Server: discord.gg/RVwBkpnQzm
I am taking PineScript Commissions ✔
=> blockchainfiesta.com/contact/
Discord Server: discord.gg/RVwBkpnQzm
I am taking PineScript Commissions ✔
=> blockchainfiesta.com/contact/
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