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DMAC

This bot trades based on Dual Moving Average Crossover strategy. A buy signal occurs when short-term moving average crosses above long-term
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Written by Quadency Customer Service. Updated over a week ago

Latest update - January 2023:

  • The Cooldown period feature is now available. This setting gives the bot the ability to specify the number of candle events that would be skipped after closing a position.

  • You can now trade with bots at no fees using QUADX as an exchange.

Overview

This bot trades based on Dual Moving Average Crossover strategy. A buy signal occurs when short-term moving average crosses above long-term moving average, and a sell signal occurs when profit target or stop-loss levels are reached or when short-term moving average crosses below long-term moving.

You can learn more about moving average cross over strategy here.

Details

General Settings:

  • Exchange: The exchange to run this bot on.

  • Market: The pair (symbol) to trade. Quadency's standard convention is Base/Quote. For example, in BTC/USD, BTC is the base currency and USD is the quote.

  • Starting Capital: The maximum amount of Quote currency available to the bot for trading. When backtesting, this value can be any amount. However, in live trading mode, the bot will stop trading if funds available in the Quote currency wallet become insufficient. Click here to view the minimum order size guide.

Strategy Settings:

  • Candle timeframe: Select the chart time frame for this strategy. The timeframe can go from 1 minute up to daily.

  • Long Moving Average Period: also called Slow moving average, here you need to specify the number of candles to look back to calculate the long moving average.

  • Short Moving Average Period: also called Fast moving average, here you need to specify the number of candles to look back to calculate the slow moving average.

  • Cooldown period - This setting gives the bot the ability to specify the number of candle events that would be skipped after closing a position.

Note: This bot uses the Single Moving Average. In order to work, the Short Moving Average must be smaller than the Long Moving Average. Learn more about moving average.

Strategy Description

  • Buy Condition: Short Term Moving Average line crosses above the Long Term Moving Average from below - buy using 100% of available capital

  • Sell Condition: Profit Target or Stop-Loss (option 1), or Indicator Confirmation (option 2)

  1. Close the position when Profit Target or Stop Loss is reached.

  2. The position should only be closed when Short Term Moving Average crosses below the Long Term Moving Average "Cool Down period" feature

Order Types

  • This strategy sends all orders as Market orders. It is advisable to trade pairs with sufficient liquidity to avoid slippage. Thinly traded markets can result in worse than ideal fills, causing the profits to be smaller than expected.

Tips:

  • Shorter candle intervals result in more frequent trades than longer ones

  • Tighter profit target and wider stop-loss will result in smaller but frequent profits

  • The bot evaluates the position at the end of each candle interval, it is possible for the bot to not place any order if the conditions are met within the candle timeframe but not at the end.

  • Be sure to back-test your settings before starting live to make sure the strategy performs well on the market and the timeframe selected

  • Any profits from trades are automatically reinvested in subsequent trades. For example, if you start the bot with $100, and the first trade results in a $2 profit, the next trade will use $102, and so on.

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