In this article, we explain what Triggers are and explain how it works.
What are Triggers
Triggers allow you to build safety nets or to enable automatic actions for your bot. For example, you can create a Trigger that shuts down your bot when BTC rises very fast. That could be useful for trades who trade against BTC.
How do Triggers work
We have a couple of examples of how Triggers work. Important: these are examples. Do your own research and make your choices. There are no ''golden settings''. For every market condition and every personal strategy, different values would be ideal.
Example 1: trade with the trend (EMA Triggers.
Trading with the trend is important for conservative day traders and scalpers. Trend-following indicators on the larger time frames can be used in order to identify the broader trend. Make sure we are only trading when it is in our favor. We can use an EMA Trigger for this purpose. An EMA-based Trigger allows you to trade only when the trend is in your favor. We can use the cross between a 10-fast EMA and a slow 20 EMA to enable or disable buying. See the chart as an example:
We create a Trigger. See the example below:
Example 2: changing a template based on market conditions.
In this example, we create 2 Triggers. 1 for a bullish market and 1 for a bearish market. You want your bot to change the Triggers according to the market conditions. See the example below for the bullish Trigger:
See the example below for the bearish Trigger:
Important: you need to use the same indicator and the same trading pair on the same exchange. For the bearish Trigger as for the bullish Trigger. Using different indicators or trading pairs can result in Triggers being activated constantly.
Read more about how to configure triggers here.