Examples of Triggers for the Trading bot
This article shows examples of triggers for the Trading bot.
Examples of Triggers
Below, we present various trigger examples to kickstart your trading journey. Please note that these examples serve as inspiration and should not be copied directly. Keep in mind that the cryptocurrency market is constantly changing, and we are not financial advisors. Instead, use these examples as a foundation to develop your unique trading strategies. It is crucial to configure the triggers correctly, and we hold no liability for losses resulting from directly using these examples. Always conduct thorough research and make well-informed decisions. Remember, there are no "golden settings" that universally apply, as the ideal values may vary depending on different market conditions and individual trading approaches.
Trade with the trend (EMA)
Trading with the trend is especially important for our conservative day traders and scalpers. Trend-following indicators on the larger time frames can be used to identify the broader trend and 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 can allow you to trade only when the trend is in your favor. Thus, we can use the cross between a 10 fast EMA and a slow 20 EMA in order to enable or disable buying.
On the chart, it would look like this:
We will start with the bullish trigger: We have named our trigger EMA Trend Bullish. We have selected Binance as our exchange, and BTC/USDT as our market (you can select another exchange and stable coin if you wish). We have selected the EMA as our indicator, and the candle size of 1 day. Our trigger point, in this case, is when the EMA signals a buy. We have set the EMA short period to 10 and the long one to 20. For the "Action", we have chosen "Set buying status" and then set the status to "enabled". For the cooldown period, we have chosen 5 minutes as we want a short cool-down period in this case. Then hit "save" and we’re done!
Our trigger should look something like this:
In order to disable buying in a bearish market, you can create a new trigger with the same settings. The only differences would be Trigger when EMA: “Signals a sell” and Set Buying Status: “Disabled”.
Changing Templates Based On Market Conditions
Instead of disabling buying when the general Crypto market enters a bearish period, you could instead use a trigger which will load the bearish template you have created just for this purpose! Let’s say that you have created 2 templates, one for bullish market conditions, and one for bearish ones. You would then like your hopper to change these templates automatically according to the market conditions. Let’s now dive into some examples:
Bullish Trigger
Bearish Trigger
Important to note here is to rely on the same indicator and the same trading pair on the same exchange, to load both the bullish and the bearish template. If you use the EMA to load the bullish template, then you must use it to load the bearish one (this applies to other indicators such as the MACD, RSI, Stochastics, etc.). Using different indicators or trading pairs may result in triggers being activated constantly.
Note: if you have enabled "do not overwrite/reset triggers", then all settings of your new template will be applied except for the triggers. In our example, we wouldn't overwrite/reset triggers as we are only using 2.
Crash Protection Trigger
If you are a trader that uses a stable quote currency, you may want to protect yourself against market crashes, especially major ones. This trigger can be especially useful when coupled with trend-following indicators, and less useful when used with momentum oscillators such as the RSI. A solid way of protecting yourself against general market crashes is to set up a trigger that will disable buying when BTC crashes by a certain percent in a given time frame. For example, let's say we want to disable buying when BTC crashes by 4% in 30 minutes. Our trigger would look like this:
Make sure the value here is negative!
Pump Protection Trigger
If you are using an unstable quote currency such as BTC/ETH/BNB/KCS etc, then you may want to protect yourself against pumps in your quote currency. If your quote currency rises strongly against other currencies, then it will be harder for you to make a profit. As such, you can again use a "percent change" trigger in order to protect yourself from this risk. It is very important here to select your quote currency (not necessarily BTC as in our example) against USDT!
Make sure the value here is positive.
Triggers are an important part of a trader's arsenal which offers the possibility of trading with the trend, using the right settings according to the right market conditions, and protecting one from crashes or pumps. Create your trigger today, customize it as you see fit, and take your trading to the next level with Cryptohopper!
