Optimized Scalping In A Downtrend

One of the most challenging aspects of building an automated strategy is adjusting the strategy’s setup to current market conditions. No trading strategy works well with all market scenarios, so make sure that the system is active only when it could make the difference between a profit or a loss. This automated strategy adds value to the wallet with optimized scalping trades in a downtrend.

Like all rules that aim to profit from market downtrends, the rule starts with selling the coin. You can open short positions on Binance Futures, or you can sell coins already in your wallet. In this way, the strategy will sell the coins to buy them back at a lower price, adding value to your portfolio.

Sell Condition

Sell Condition

The rule then buys back Bitcoin at a lower price when the trend reverts in the short-term. 

If Bitcoin is moving on the downside, the percentage for buying back can be slightly higher than the one that triggered the sell order to optimize the results.

How it Works

Setting up a time frame to calculate the percentage to trigger the initial order for the rule allows following the price dynamically. Every time the price increases, the bot sells the set amount of Bitcoin to buy back at a lower price.

Not only is this the best trading strategy for Bitcoin in times of low volatility, but this approach also works well with any coin experiencing sideways moves with low volatility.

How to Build the Strategy with Coinrule

In times of price consolidation, trading manually can be very challenging and stressful. Deploying an automated strategy like the one described above helps to catch more opportunities that can add significant value to the wallet.