SMA Crossover
Gunbot employs a strategy that utilizes the Simple Moving Average (SMA) to dictate when to execute buy and sell orders. This approach functions by detecting when prices start to climb, as demonstrated by the rapid SMA crossing above the sluggish SMA. Purchasing is initiated at this juncture. Conversely, selling occurs when the rapid SMA crosses beneath the slow SMA.
Simple Moving Average (SMA) is a widely used technical analysis tool for determining market trends. It computes the mean price of an asset over a designated time frame by adding up the closing prices and dividing the sum by the number of periods. The outcome is a streamlined line that reveals if the market is experiencing an upward or downward trend.
The technique employed by Gunbot takes advantage of the intersection between two SMA lines to pinpoint potential buying and selling opportunities. A rapid SMA line is derived from a briefer time span, while a sluggish SMA line is based on a more extended period. When the rapid SMA surpasses the sluggish SMA, it suggests that the trend could be moving upwards, making purchasing advantageous. In contrast, when the rapid SMA dips below the sluggish SMA, it implies that the trend might be headed downwards, necessitating selling. This technique can aid traders in making well-informed choices based on market trends.
Working with SMA Crossover
Buy Method Requirements
A buy order is permitted when the rapid SMA line crosses above the sluggish SMA line.
In this strategy, typical limitations such as one-time buying and selling do not apply. Gunbot will execute a buy order up to the limit set in your balance settings each time purchasing conditions are met.
Conditions for sell method
A buy order is permitted when the fast SMA line moves beneath the slow SMA line.
Using gain protection is optional in this strategy. Keep in mind that this could result in selling orders below your break-even point.
Trading example
An illustration of potential performance using this strategy. Details and settings
The graphic below explains the trade triggers for this strategy.
