Squeeze strategy

Modified on Fri, 24 May 2024 at 05:31 PM

Performs automatic trading on the "Squeeze" strategy.

Start

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

Allocate volume (1).
Set main parameters (2):

Buy trigger
Sell trigger
Time-frame
Binding

Set optional parameters (3):

Activation trigger
Price range for the strategy
Trailing
Once per candle
Auto restart, collect/reuse

Click ''Create'' button.

How it works

1. The strategy places a buy order equal to the value in the "Buy trigger" box according to a specified percentage where the ''binding'' is a starting point (in the screenshot above, the "low" is selected by default as the most "safe"). If the price falls to the set settings, the strategy buys and places a sell order following the selected "Sell trigger" (taking into account the average price for multiple purchases).

2. If the ''low'' of a candlestick is constantly decreasing, the buy order trails down to the buy trigger value.

3. If the price goes up and the "Trailing up" checkbox isn't on, the buy order remains at the last value of ''low'' minus the user's % (buy trigger).

4. In case of a partial purchase and when a squeeze strategy gets new funds from a sell order, the strategy doesn't use the funds until the closing of the candlestick in which the sell order was executed. And only after the closing, the strategy places a new buy order with specified settings for available funds.

Activation trigger

1.There is an option to set the activation trigger in percentage. Click the checkbox next to the trigger box.

In this configuration the strategy activation doesn't occur when the price reaches a certain level but when it changes to the set percentage to the previous candlestick.

"Notify about activation"

If the strategy works through the activation trigger, the user can activate or deactivate the "notify about activation" option by clicking the ''bell''. In that case, the user gets notifications in the telegram bot and the "system notifications" block.

Users can use the option to select a price range for the strategy:

If this field (or fields) is filled in, the strategy sets a price level at which it enters a waiting mode when the market reaches it. This helps to reduce the risk of a negative outcome for the strategy. It's possible to set both upper and lower price limits separately.

Reuse / Collect

Reuse: the amount of the buy order increases with each completion of the "buy-sell" cycle (i.e. investment amount + profit).

Collect: the amount of the buy order remains the same. The bot collects profit in the coin selected from the pair.

Once per candle

There is a limit of transactions for the strategy in one candlestick when this function is activated. The strategy performs only one "buy-sell" cycle in a candlestick. For the first time, the strategy doesn't place buy orders until the current candlestick is closed. This function is appropriate for upper timeframes (TF) and large allocations to the strategy.

Additional settings (SL, Other)

Configuration of the stop-loss (SL) for the Squeeze strategy:

Users can set the stop-loss for the Squeeze strategy based on time after purchase if no sale has

occurred, and/or based on a price trigger. This trigger can be expressed as a percentage (delta from the purchase price) or as an absolute value (reaching a specific price level).

When at least one stop-loss trigger is set, users have the option to activate the "Continue work" checkbox. With this checkbox checked, after a strategy forces a sale due to the stop-loss being triggered, the strategy continues to operate.

Other configuration

In this section, there is an option to set a "lifetime" for the strategy - a stop timer. This applies only to a strategy launched with an activation trigger. If the strategy is not activated within the time chosen by the user (from the moment of launch or the last deactivation), it will terminate its operation.

The strategy stops:

After a sell order execution (without the ''Auto restart'' option).
After a stop loss trigger (and full sale if there was a purchase).
When the user stops the strategy.
Because of external interference with orders (for example, via the exchange).
According to the time to stop after buying (stop loss menu).

Additional info:

1. The user can add stop loss+ to the active strategy before the trade as well as in the trade:

With active stop loss+, the strategy doesn't stop if ''auto restart'' is on. The strategy sells the position and continues to work according to the setting.

2. With an active trailing up "Last candle" option, the squeeze strategy also does trailing down. When the user moves a buy order without active "trailing up", the strategy doesn't move the order when the candlestick closes. The order changes only after the ''low'' renewal recorded since the strategy start. Restart the strategy to renew the ''low''.

3. The maximum number of concurrently running Squeeze strategies is limited by the subscription level:

For the Standard subscription level - 1 active Squeeze strategy per entire account;

For the Pro subscription level - 5 and 50, where 5 represents the number of simultaneously running Squeeze strategies without an activation trigger, and 50 represents the number of simultaneously running Squeeze strategies with an activation trigger (the activation trigger must be greater than or equal to 1%). Strategies running without an activation trigger will not interfere with the activation of those triggered by the trigger.

4. The user can speed up and automate the search for a working config by the script for Trading view.