Trendline Scalping

Ekliptor

Administrator
Staff member
Requirements:


Getting started:

Go to the "Configuration" page of your WolfBot instance and select the configuration named "TrendlineScalper".
This is an example for scalping on BitMex using 4 strategies:
  • the TrendlineScalper strategy as the main strategy
  • RSIScalpOrderer as the execution strategy to execute the buy/sell order received from TrendlineScalper
  • StopLossTurn as your stop-loss strategy in case the support/resistance line gets broken
  • TakeProfit as your take-profit strategy to exit the market after a bounce at the support/resistance happened
Switch to the "Trading" tab of the "Configuration" page and adjust:
  • your exchange (used for Backtesting as well as live trading)
  • your currency pair
  • Enter the support and resistance lines you identified from the chart into the TrendlineScalper strategy
  • adjust your profit target in TakeProfit by changing the "profit" variable as well as your stop-loss in StopLossTurn by adjusting "setback" and "setbackLong" (for closing long positions)


The trading idea behind it:

You don't know if or when a popular support or resistance line will be hit on the market. So you want your bot to be ready to execute a trade when that happens, but stay out of the market otherwise (to keep your trading capital available for other trading ideas using other strategies).
To achieve this, the TrendlineScalper strategy acts as your main strategy and looks if the current market rate hits a support or resistance line. If a support line gets hit it forwards a buy order to the RSIScalpOrderer strategy (correspondingly, if a resistance line gets hit it forwards a sell order).

The RSIScalpOrderer runs on a very small candle size (between 1-10min usually) and waits until either:
For buy orders:
  • the RSI value reaches the immediateHigh value to immediately execute the buy order
  • the RSI value gets below the configured RSI low value and then increases to at least 50 afterwards (configurable with the enterHigh setting)
For sell orders:
  • the RSI value reaches the immediateLow value to immediately execute the sell order
  • the RSI value gets above the configured RSI high value and then decreases below 50 afterwards (configurable with the enterLow setting)
If none of these conditions happen within 5 candle ticks of the candle size of RSIScalpOrderer the pending order gets deleted (won't get executed). The number of candles to keep the order pending can be configured with the expiry parameter.
After an order has been deleted it can only be executed again after the main strategy TrendlineScalper forwards the buy/sell order again if price hits again a support/resistance line.


The above four strategies are just an example of trendline scalping. You can also add other strategies such as TakeProfitStochRSI or BollingerStop.
 
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