Methodology for Channel strategy usage

Modified on Mon, 21 Aug, 2023 at 7:51 PM

The Channel strategy is used in many ways, for example:

  • Trading with a satoshi coin.
  • Automated algorithm of delayed buy and sell with a stop.


Trading with a satoshi coin

The "Ping Pong" strategy works with zones where a fake breakout occurs. It is when price breaks outside of a defined range but quickly moves back into the range. The trader should find an asset on the chart that after a breakout makes a retest of the level.

Steps:

1. Define a level below which you want to place the channel strategy.

2. Measure a percentage of change by using historical data and the current price. In the image below, the step is 12 up to a price of 40.

3. Place strategies at each level with equal deposits (or martingale coef). Auto-restart is optional.

4. Wait till price retests the level after a breakout.


 Extra tips:

- Select the "Collect" option before strategy activation if you see the potential growth of a specific asset. You can sell the profit of the strategy at a better price.

- Be ready for a long-term trading (several months). It requires BTC purchased at a low price.

- Be aware that the strategy works only after the bull market when the volumes are dynamic.

Automated algorithm of delayed buy and sell with a stop

The strategy buys at a defined price, places a sell order and a stop-loss in your absence.

Steps:

1. Set buy/sell level In the config.

2. Set a stop-loss and start trigger (optional).

3. Please note! Since this is one-time testing, make sure to turn off the "Auto restart" checkbox.


 Extra tips:

- Keep in mind that the channel strategy works only with set parameters. Regardless of your intervention, the strategy still places a sell order according to the set price level in advance.

- On highly liquid instruments, you can set a start trigger up to 1% away from the current market price to avoid early freezing of the deposit.

Test the strategy with small orders, study coins, and change config according to the market situation. A configuration cannot be profitable for a long time.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article