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.
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