Time Series Analysis
Utilizing time series analysis, this approach aims to predict the closing price for the next period. This data is integrated with xtrend and smacross to determine the potential power of a projected price movement.
To enhance this technique, supplementary indicators can be employed as validation for both purchasing and selling actions. For instance, Gunbot could execute a buy order when the predicted price surpasses the ask price and RSI is at 30 or below.
Gunbot initiates a single position, either long or short, and concludes it once the objective is met. If a stop is triggered before a trade closes profitably, Gunbot sets a stop order at a loss. Upon closing a position, Gunbot resumes seeking new opportunities to open long or short positions. Gunbot will not augment existing open positions.
Requirements for Long Positions
Initiating a long position is permissible when the ask price exceeds the forecasted value.
Requirements for Short Positions
Initiating a short position is permissible when the bid price falls below the forecasted value.
A position is closed when the desired return on equity (ROE) is achieved. This is a percentage based on the entry point and accounts for leverage.
A position is terminated at a loss when the negative ROE matches the STOP_LIMIT target.