Fibo strategy

Modified on Wed, 20 Dec 2023 at 09:31 PM

A simple and multifunctional strategy that work is based on a Fibonacci grid. Fully automated for working on the "Aftershock" strategy. Buys at the fibo levels and then sales at higher ones. Its multifunctionality provides different ways to use the strategy.

Start of the strategy

Variant №1:

Open the "Strategy" menu on the chart.
Click the "Fibo" tab.

A fibo grid shows up linked to the candlesticks visible on the chart (see the image below). Then adjust it on the chart.

In this image:

1 - max price of the visible candlesticks.

0 - min price of the visible candlesticks.

t1 - current time.

t0 - min price time (0).

Variant №2:

Create a "Fibo grid" on the chart by the "Fib retracement" tool.
Open the strategy creation window by selecting the "FB" icon on the panel of favorite strategies (1), or by right-clicking on the tool and choosing "Launch Strategy" from the context menu (2):

Enter the volume in numbers or percentage (1) and click ''Create'' (2):

The strategy places three buy orders at the levels of 0.5, 0.382, and 0.236. When executing the "highest" buy order, the strategy places a sell order at the 0.618 level. After the sell order execution, the strategy stops:

How it works

When the price touches the 0.5 level, the strategy buys and automatically places a sale order at the 0.618 level.

If the strategy buys at the levels of 0.5 and 0.382, then it rearranges the sell order (at the 0.618 level) and places a new sell order at the 0.5 level (i.e. one purchase is breakeven, the second with a profit).

If the strategy executes all three orders, the strategy automatically places all purchased values at the level of 0.382.

Additional settings for the Fibo strategy

1. Order placement along the grid

One of the options is to raise buy/sell orders to a higher level by selecting the "0.618" checkbox for work from the 0.618 level.

The user can automatically place the highest sell order in the middle of the channel (0.786-0.618) by switching the toggle from "0.786" to the "0.702" position. The positions of these toggles and checkboxes, as well as the values in the "buy/sell deviation" and "% of the start trigger" boxes are saved for the next start.

2. Deviation of buy and sell orders from the Fibo grid levels

Usually, Fibo grid levels often coincide with liquidity zones. Therefore, it is recommended to set deviations from the levels in the strategy to prevent situations where buy or sell orders are within or beyond a cluster of orders, reducing the chance of a profit.

The values in these fields stay for the subsequent launches.

3. Enabling the activation trigger for the strategy.

Allows users to set up strategy activation when the price reaches a certain percentage delta, up to the first (upper) strategy order. Until this moment, Fibo is in waiting mode and doesn't reserve the allocated balance.

The values in these fields are saved for subsequent launches.

4. "Sticky fibo" checkbox

When the user increases the value of ''1'' and a "Sticky fibo" checkbox is active, not only the buy orders on the fibo grid, but also the start and stop triggers are updated.

Visually, when changing a high, the active strategy updates the initial configuration of the strategy. In standby mode, the configurations stay unchanged. And only when the strategy is active again, the grid is updated.

5. Templates

Designed to minimize the number of actions when starting the strategy. Create your template with the necessary configurations and parameters. Click the ''cloud''

button. In the opened window, name the template and save.

6. Tabs to configure Buy an Sell orders, Stop loss, and other

Types of orders:

Limit
Grid
Iceberg
Market (for stop loss and stop loss+)

Grid and Iceberg types of orders

These types of orders are placed at a definite price level, divided into several equal parts (small orders) so that the real buy/sale amount is not reflected in the order book. When setting up this type of order, the user must define the number of parts (of small orders):

1. In grid order, the parts are placed at once.

2. In iceberg order, the parts are placed in series. When the exchange executes the first of these small orders (the tip of the iceberg), the next one is automatically placed. So the entire order is executed by small parts in series - the next part is placed as the previous one is executed.

In a grid order, the user must enter the deviation from the price level. The deviation can be marked with "+", "-" (click the symbols) or both ways at the same time "+ -". It can be set both as a percentage ''%'' and an absolute value ''USDT'' (the selection is made by a toggle to the right of the box).

In an iceberg order, the user can optionally set the offset from the price level. The setting is similar to the grid order but without selecting the symbols. When executing such buy orders with defined deviation or offset, sell and stop loss orders placing is based on the average price of the actual purchase.

Example of a grid order:

The main price level is "100", the deviation is "+ - ","1".

The bot places parts on: 100, 101, 99, 102, 98 etc.

Example of an iceberg order:

The main price level is "100", the offset is "1".

The bot places parts on: 100, 101, 102, 103 etc. Without the offset, places all parts on 100.

"SL" tab

In the "SL" tab, users can configure the main stop loss level for the strategy. Read the article "General settings for trading strategies" for more information.

In the "Other" tab, there is the option to specify:

"If not activated for": stop timer for the strategy. It is applicable only to a strategy launched with an activation trigger. If the strategy is not activated within the user-defined time (since the launch or the last deactivation), it terminates itself.
"Max price change": the strategy stop trigger on sharp price changes is used to protect against sudden price jumps when the "Sticky Fibo" parameter is enabled. The percentage change is tied to the 1-minute timeframe. When the conditions are met and this trigger is activated, the strategy forcibly stops.

Stop Loss+

The active strategy can:

Add extra stop loss without restarting the strategy:

In the configuration window, navigate to the "SL+" tab and click on "Add Stop Loss"; alternatively, in the additional strategy toolbar located in the list of indicators on the "Chart" block, click on the "ellipsis" to access additional parameters, then select "Add Stop Loss".
Use the tool on the chart that appears to set the trigger level for the "stop" (horizontal or dynamic line).
Click on the "SL" button on the top panel of the "Chart" block.
After triggering a stop loss of any type, the strategy will terminate.

In the "Stop Loss+" tab, the strategy has a "Remove BUY orders" option for intraday trades.

The idea is that the user can cancel safety orders to release an unused balance. The strategy cancels buy orders and stay active until sell or stop loss orders execution. All this happens when the user clicks the ''remove BUY orders'' button.

To change to "sale only mode", the following conditions must be met:

The strategy must have an executed limit order to cancel buy orders.
Stop loss+ must be placed.

7. Automatic selection of proportions:

The Fibo strategy has an algorithm that sets the percentage from the allocated volume to each level based on the selected "Profit-Profit-BE" or "Profit-BE-BE" grid:

Profit-Profit-BE - concentrates % of the deposit on the first two levels to get profit. The third order is just a safety order.

Profit-BE-BE - concentrates % of the deposit only on the first level to get profit.

Manual - This is a classic 20-30-50 and the safest one that allows getting a profit even from the third level.

Warning! When change buy/sell levels that are different from the fibo grid (for example, moving the sale order from 0.5 to 0.702), use the manual grid proportion. Otherwise, the auto-distribution of the grid Profit-Profit-BE or Profit-BE-BE is unpredictable to calculate.