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Multi Tranche Scalping On Trend
When a coin is in an uptrend, instead of jumping in with the full desired amount, you could instead buy small sizes periodically and chase small price increases as the price rises up. The rule activates automatically when the price is above a moving average, indicating momentum. This approach is a multi tranche scalping on trend.
The trading system first identifies when a coin is on-trend. The price should be above at least a medium-term moving average, such as the MA50. The bot, then, buys according to the set-up frequency, for example, every 1 hour.
Each trade is protected by a stop loss and takes profit on small price increases to secure the profits promptly.
How it Works
While the coin is trending on the upside, the rule keeps buying small amounts. The advantage of the strategy is that the size of the position increases proportionally to the time the coin remains above the set moving average.
Using a strategy like this, you would grow the position in parallel with the trades’ confidence. As soon as the trend reverts, the rule stops buying, and your open trades remain protected by the stop loss.
How to Build the Strategy with Coinrule
One key aspect of the set up of such a trading system is defining the orders’ frequency. Make sure you lower the size of the orders properly if are planning to get more executions. Use the “no more than” option before launching the rule to set the maximum frequency of the buy orders.