The Stepgain strategy monitors market prices and patterns, executing trades when a trend reversal occurs. It buys when a downtrend shifts to an uptrend—shortly after the price reaches its lowest point—and sells when an uptrend turns into a downtrend.
To identify buying opportunities using Stepgain, Gunbot employs EMA (Exponential Moving Average). Once the price drops a specified percentage below the lowest EMA, Gunbot begins searching for trend reversals. XTrend automatically calculates trends, which can be seen in your logs. The results of XTrend may differ based on your PERIOD setting. While XTrend is optional, you can also choose to trigger Stepgain solely based on price reversals above or below the configured level.
For additional trade confirmation, you can opt to use indicators like RSI or Stochastic. These allow you to buy or sell only when both a trend reversal and a particular indicator level occur simultaneously, helping reduce risk and enhance the reliability of trading decisions.
Implementing the Strategy
Buy Method Requirements
A buy order is permitted when the price falls within the configured buy levels and a change in trend direction is detected.
Sell Method Requirements
A sell order is permitted when the price is within the configured sell levels, a change in trend direction is observed, and the gain percentage target has been achieved.
Example demonstrating the performance of the stepgain strategy. Settings and Details
The infographic below explains what activates trades using this strategy.
In this illustration, both BUYLVL and SELLLVL are set to 2. A shift in price movement direction is assumed to be a trend reversal in this example; however, in reality, not every change in price direction will be regarded as a trend reversal, as the trend's strength is also taken into account.