Squeeze-bot algorithm

Squeeze-bot algorithm

Apitrade

The "squeeze-bot" algorithm in the futures and spot grid-bot "Hurricane" allows you to automatically open a position and start trading with the bot when a sudden price drop (squeeze) of the selected coin happens against USD. The algorithm automatically detects when a squeeze occurs, depending on the speed of price decline across different timeframes. For different coins, a price has to drop at a different speed, depending on the liquidity of the coin and the history of previous price drops of this coin (for top coins, a small drop of 5-10% is enough, for volatile coins with small capitalization, a very sharp drop of 10-20% is needed).

On the USDm-bots launch page, you can select altcoins by checkboxes, which long positions you need to open when the signals of a squeeze bot appear. When a signal appears, the first order will be bought using a market order and trading will begin in the usual mode - closing limit take profit orders will be placed above the current price, and a grid of opening orders will be placed below the price.

When an open position is closed, trading will stop, opening limit orders will be canceled and the squeeze bot will wait for a new squeeze on this trading pair.

If desired, for each selected coin you can choose different risks (squeeze bot sensitivity), for example, with a risk of 100%, positions will be opened much more often, because to open them, half the price drop of the coin will be required. At 0% risk, squeezes will be opened very rarely, because it will require twice as much price drop.

We also added the "Maximum number of open squeeze bots" option in the "General Limits" to limit the number of positions simultaneously opened by the squeeze bot. For security purposes, it is also recommended to set a limit on the amount of open longs and the number of open long positions.

When launching a squeeze bot, it is recommended to enable the additional option "Buy no higher than the opening price" and indicate in the "if the position is less" field a value from 25% (safer) to 75% (more risky) of your first order size. This is necessary so that the trading is not only lower, but also slightly higher than the purchase price of the first order, but when there is a small position left, buy orders above the opening price will be canceled so as not to greatly worsen the average entry price.

Example of squeeze bot settings: (with a deposit of 300 USDT and 1 squeeze bot, these are very low-risk settings without a liquidation price, because the maximum position is less than the deposit, as the number of active squeeze bots increases, the risks increase accordingly, so it is recommended to use a hedge short and limit in the "General limits" the number of running squeeze bots, as well as the number of simultaneously open long positions, in this case you can run more squeeze bots with less risk). We remind you that you do not have to manually specify all these settings, just select the pairs for which you want to run a squeeze bot, click "Start/control/stop grid-bots", then click "system templates", select a template with a "squeeze bot" strategy and click "copy". If necessary, you can always change any settings at your discretion.


Report Page