Pingpong
The range-bound strategy is perfect for trading pairs that oscillate within a consistent price range over an extended period. Simply establish buy and sell prices, and Gunbot will carry out trades as soon as the target price has been achieved or surpassed.
To optimize this technique, Gunbot provides extra indicators for both buying and selling confirmations. For example, you can set up Gunbot to buy at a specific price only when the RSI (relative strength index) falls to 30 or below.
Utilizing the Strategy
Gunbot will initiate one position, either long or short, and close this position once the target is attained. If the stop is triggered before closing a trade profitably, Gunbot will place a stop order at a loss. After finalizing a position, Gunbot will look for opportunities to open a new long or short position. Gunbot will not increase existing open positions.
It is advised not to manually add or reduce positions initiated by Gunbot unless you cease using Gunbot on this trading pair until the position is closed.
The examples below illustrate the fundamental triggers for range trading. Additionally, confirming indicators and settings like ROE trailing can be utilized.
Buy Method Requirements
Trend Following (Standard)
Opening a long position is permitted when the ask price is equal to or greater than RANGE_BUY.
Mean Reversion
In MEAN_REVERSION mode, the behavior for RANGE_BUY and RANGE_SELL is inverted in this strategy.
Opening a long position is permitted when the ask price is equal to or less than RANGE_BUY.
Sell Method Requirements
Trend Following (Standard)
Opening a short position is permitted when the bid price is equal to or lower than RANGE_SELL.
Mean Reversion
In MEAN_REVERSION mode, the behavior for RANGE_BUY and RANGE_SELL is inverted in this strategy.
Opening a short position is permitted when the bid price is equal to or greater than RANGE_SELL.
Closing Conditions
A position is closed when the targeted ROE has been achieved.
Stopping Conditions
A position is closed at a loss when its stop is triggered.