Gain
Gunbot employs the Exponential Moving Average (EMA) approach to identify optimal buy and sell moments. It purchases when the price drops below the lowest EMA and sells once a predetermined profit percentage is reached.
EMA is a widely used technical analysis tool that computes an asset's average price over a defined time frame, giving more importance to recent prices. This makes it more sensitive to price trend shifts than a Simple Moving Average (SMA). Traders frequently utilize EMAs to detect potential buying or selling opportunities, as intersections between various EMAs can suggest market tendencies. Furthermore, EMAs can help filter out short-term price data fluctuations, making long-term trends more apparent.
Working with the Strategy
This section outlines how futures trading functions utilizing the profit strategy. The trade triggers differ slightly from spot trading methods.
Gunbot initiates a single position, either long or short, and closes it upon achieving the goal. If the stop is activated before the trade reaches profitability, Gunbot sets a stop order at a loss. After concluding a position, Gunbot aims to establish a new long or short position.
Conditions for Buying
Trend Following (regular)
A long position is permitted when the ask price is equal to or greater than LONG_LEVEL.
Mean Reversion
A long position is permitted when the ask price is equal to or less than LONG_LEVEL.
Conditions for Selling
Trend Following (regular)
A short position is allowed when the bid price is equal to or lower than SHORT_LEVEL.
Mean Reversion
A short position is allowed when the bid price is equal to or lower than SHORT_LEVEL.
Closing Criteria
Positions are closed when the desired ROE (return on equity) is attained. This value is a percentage from the entry point, factoring in leverage.
Stopping Criteria
A position is closed at a loss when the negative ROE hits the STOP_LIMIT target.