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SMA cross

Gunbot uses a method that relies on Simple Moving Average (SMA) to determine when to buy and sell. This method works by identifying when prices begin to rise, as indicated by the fast SMA crossing over the slow SMA. Buying occurs at this point. On the other hand, selling takes place once the fast SMA crosses below the slow SMA.

Simple Moving Average (SMA) is a technical analysis indicator used to identify market trends. It calculates the average price of a security over a specified time period by summing up the closing prices and dividing the result by the number of periods. The result is a smooth line that indicates whether the market is trending upwards or downwards.

The method used by Gunbot leverages the crossover of two SMA lines to signal potential buying and selling opportunities. A "fast" SMA line is calculated based on a shorter time period, while a "slow" SMA line is calculated based on a longer time period. When the fast SMA crosses above the slow SMA, it indicates that the trend may be shifting upwards, and buying may be beneficial. Conversely, when the fast SMA crosses below the slow SMA, it indicates that the trend may be shifting downwards, and selling may be necessary. This method can help traders make more informed decisions based on market trends.

How to work with it​

Gunbot will open one position, either long or short, and close this position when the target is reached. When the stop is hit before profitably closing a trade, Gunbot will place a stop order at loss. After closing a position, Gunbot will again look to open a new long or short position. Gunbot will not add to existing open positions.

Buy method conditions​

Opening a long position is allowed when FAST_SMA crosses over SLOW_SMA.

Sell method conditions​

Opening a short position is allowed when FAST_SMA crosses down SLOW_SMA.

Conditions to close​

Position is closed when the desired ROE (return on equity) is reached. This is a percentage from the entry point, taking leverage into consideration.

Conditions to stop​

A position is closed at loss when negative ROE reaches the STOP_LIMIT target.

Long settings​

Buy settings are the primary trigger for long orders. These parameters control the execution of long orders when using smacross as buy method.

Buy enabled​

Set this to false to prevent Gunbot from opening long positions.

Short settings​

Buy settings are the primary trigger for short orders. These parameters control the execution of short orders when using smacross as sell method.

Sell enabled​

Set this to false to prevent Gunbot from opening short positions.

Indicator settings​

Relevant indicators for trading with SMA cross.

These settings have a direct effect on trading with smacross.

Period​

This sets the candlestick period used for trading, this affects all indicators within the strategy.

Only use supported values. The trading settings editor suggests valid values for the selected exchange..

Setting a short period allows you to trade on shorter trends, but be aware that these will be noisier than longer periods.

Slow SMA​

The number of periods used for calculating the slow SMA.

Fast SMA​

The number of periods used for calculating the fast SMA.