Methodology for Channel strategy usage

Modified on Mon, 21 Aug 2023 at 07:51 PM

The Channel strategy is used in many ways, for example:

Trading with a satoshi coin.

Automated algorithm of delayed buy and sell with a stop.

Trading with a satoshi coin

The "Ping Pong" strategy works with zones where a fake breakout occurs. It is when price breaks outside of a defined range but quickly moves back into the range. The trader should find an asset on the chart that after a breakout makes a retest of the level.

Steps:

1. Define a level below which you want to place the channel strategy.

2. Measure a percentage of change by using historical data and the current price. In the image below, the step is 12 up to a price of 40.

3. Place strategies at each level with equal deposits (or martingale coef). Auto-restart is optional.

4. Wait till price retests the level after a breakout.

Extra tips:

- Select the "Collect" option before strategy activation if you see the potential growth of a specific asset. You can sell the profit of the strategy at a better price.

- Be ready for a long-term trading (several months). It requires BTC purchased at a low price.

- Be aware that the strategy works only after the bull market when the volumes are dynamic.

Automated algorithm of delayed buy and sell with a stop

The strategy buys at a defined price, places a sell order and a stop-loss in your absence.

Steps:

1. Set buy/sell level In the config.

2. Set a stop-loss and start trigger (optional).

3. Please note! Since this is one-time testing, make sure to turn off the "Auto restart" checkbox.

Extra tips:

- Keep in mind that the channel strategy works only with set parameters. Regardless of your intervention, the strategy still places a sell order according to the set price level in advance.

- On highly liquid instruments, you can set a start trigger up to 1% away from the current market price to avoid early freezing of the deposit.

Test the strategy with small orders, study coins, and change config according to the market situation. A configuration cannot be profitable for a long time.