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[2 Bot Set up] RSI-Based Trade Channel

Share your Haasbot Trading Strategies and Configurations
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Phillis
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[2 Bot Set up] RSI-Based Trade Channel

Postby Phillis » Thu Oct 23, 2014 11:06 am

RSI Based Trade Channel Set up
Level: Intermediate
Risk: Average
When to use it: Low Volatility and within a specific trading range

Overview
This set up requires a little bit of knowledge for reading the charts, but I will also walk you through that. Basically, this set up is very useful for times when the prices is not skyrocketing nor plunging, but staying rather stable within a specific range. At the moment (October 23rd, 2014), this is a perfect time to run this set up. This set up requires 2 bots and we will be trading within a specific range.

Bot 1 - RSI-Based Trading Bot
Safeties - None
Insurances - Cancel after 2 minutes
Indicators - Any RSI Based Indicator (RSI, StochRSI, Stochtastic) @ 15-60 minutes, length: 15-60 (it depends, do some backtesting to find the best setup)

Bot 2 - Static Roof In + Static Drop Loss
Safeties:
* Static Roof In at the highest point of the trade channel
* Static Drop Loss at the lowest point of the trade channel
Insurances: Cancel after 2 minutes
Indicators: None

How it works
First we want to look at the charts and if we need a pattern for a nice trade channel form (a nice high and low with about $20+ difference between the high and the low), we will go ahead and set up this bot. For this case, we are looking at the trading channel i have illustrated below:

Image

Based on this trade channel, we will set the Static Roof In to $398 (Bot #2 will buy if the price rises above this) and the Static Drop Loss of $365 (Bot #2 will sell if the price drops below $365). The importance of this strategy is that Bot #2 will steal the coins from bot #1, so that we don't end up with a massive buying/selling Loop. So essentially the bot will only trade with this price range via an RSI based indicator, which is great for trading the little waves after a large rise and a sharp drop.

Bot 1 should be set up with an RSI based indicator @ 60 minutes, buy you may want to increase the length of RSI to make it more accurate and to tinker it closer to how we want it to perform. For this case, I am using StochRSI @ 60 minutes, with a length of 50, which will trade how I want it to within this trade channel. RSI based indicators are great at trading the waves, but it will generally never catch the bottom or top of the little waves, but it will get close, which is the important thing. I personally like StochRSI for this, but RSI will work as well.

The reasoning why we have the drop loss and roof in is that if there is a massive drop in the price (however unlikely) we want to sell and take a small loss in order to catch the bottom via another trade bot setup or by manually catching it. We want to buy if it rises above the Roof In price, because if theres a massive rise we don't want to miss out and we will take a small loss is we are sold via the RSI base indicator to rebuy.

I hope you enjoy this strategy (as it is one of stephans) but I use it myself and i've made a bit of a profit with it last night as well as today. Good luck and happy trading!

cntougec
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Re: [2 Bot Set up] RSI-Based Trade Channel

Postby cntougec » Fri Nov 28, 2014 4:59 pm

Can you elaborate on the insurances? I'm not aware of that feature on any of the licenses.

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Phillis
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Re: [2 Bot Set up] RSI-Based Trade Channel

Postby Phillis » Sat Nov 29, 2014 11:03 am

cntougec wrote:Can you elaborate on the insurances? I'm not aware of that feature on any of the licenses.


there is an insurance called "cancel order after X minutes," which is optional for this, which should be set at 1 minute or 2 minutes. It just makes sure your order goes through if its not filled within that time frame (default time frame is 10 minutes).

Parakletos
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Re: [2 Bot Set up] RSI-Based Trade Channel

Postby Parakletos » Wed Aug 26, 2015 8:50 am

More screen-captures would be helpful. I am trying to follow these instructions and am already stuck. There is a setting for RSI length as well as length. The instructions don't seem to take this into consideration. It just says use '50'.

Also, it would be nice to have other examples. This single example (in nearly a year!!) is just paltry to say the least.

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Phillis
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Re: [2 Bot Set up] RSI-Based Trade Channel

Postby Phillis » Wed Aug 26, 2015 9:06 am

Parakletos wrote:More screen-captures would be helpful. I am trying to follow these instructions and am already stuck. There is a setting for RSI length as well as length. The instructions don't seem to take this into consideration. It just says use '50'.

Also, it would be nice to have other examples. This single example (in nearly a year!!) is just paltry to say the least.


well, i can't say specifically what to run in terms of the stochrsi values, as it would change depending on the market. I would look at the Indicator Scanner in order to determine indicator values.

But yeah, these are just examples. I do run this quite often during periods on sideways markets, as it is a proven strategy and the risk is manageable, even on high leverage. We do provide some ideas for bots, but ultimately its up to the user to design and run strategies that fit their needs.

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Phillis
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Re: [2 Bot Set up] RSI-Based Trade Channel

Postby Phillis » Tue Sep 08, 2015 12:07 pm

something about me being terrible at explaining this strategy and about our forums being a way of convincing people of purchasing haasbot.


The goal was to provide some examples of strategies. I personally don't give out exact settings, because it literally changes each time i set it up, as its dependent on the market conditions/range you want to set it up in. If you feel that this is a useless example, you are free not to use it. Criticizing me won't do anything productive either. I still use this strategy to this day and the logic behind it is simple. You set up a trade channel, where you will allow an indicator to trade in, but if the price goes below the static drop loss price, you are sold (and in good position to rebuy at a lower price) and if it goes higher than the static roof in price, it the stay bought so you can switch to another strategy to sell the top of a pump.

krako
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Re: [2 Bot Set up] RSI-Based Trade Channel

Postby krako » Tue Jun 28, 2016 5:09 am

Hi, one question about this strategy, if we have more than this two bots how to do for the based trade channel don't interfere with the others?

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Theo
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Re: [2 Bot Set up] RSI-Based Trade Channel

Postby Theo » Thu Jun 30, 2016 9:34 am

Hi, one question about this strategy, if we have more than this two bots how to do for the based trade channel don't interfere with the others?

Hi,
If you are trading on the same exchange with the same pair and the same exact setup then not a lot will happen. If you would like to expand on this stratgey you could by adjusting the indicators slightly for each bot using this setup. For example in Bot 1 the RSI has a setting of 14 and in bot 2 a setting of 28. You could also offset slightly for example RSI values of 9,10, 11 each bot with t a different one. This is spreading out your orders over an area rather than one big order. I hope this helps.
Thanks,
Theo


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