Strategy Overview

Choose the right trading strategy based on current market conditions and your risk tolerance.

Strategy Categories

Momentum Trading

Advanced momentum trading strategy with fee optimization and comprehensive risk management.

Concept: "The trend is your friend" - ride existing directional moves with intelligent entry/exit timing

Attribute	Details
Best Markets	Clear trends, strong momentum, breakouts
Risk Level	Medium-High
Skill Required	Intermediate-Advanced
Timeframe	Hours to days
Key Features	RSI, MACD, Moving Averages, Fee Optimization, Overtrading Prevention

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Mean Reversion

Advanced mean reversion strategy with RSI, Bollinger Bands, and intelligent range detection.

Concept: "What goes up must come down" - trade against extremes with sophisticated range detection

Attribute	Details
Best Markets	Range-bound, sideways, low volatility
Risk Level	Low-Medium
Skill Required	Intermediate-Advanced
Timeframe	Minutes to hours
Key Features	RSI, Bollinger Bands, Range Detection, Fee Optimization, Trend Avoidance

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Market Making

Advanced market making strategy with dynamic spread management and sophisticated inventory control.

Concept: "Provide liquidity" - profit from bid-ask spreads while managing inventory risk

Attribute	Details
Best Markets	High-volume, liquid markets with consistent spreads
Risk Level	Medium
Skill Required	Advanced
Timeframe	Minutes to hours
Key Features	Dynamic Spread, Inventory Management, Volatility Adjustment, Grid Management

Grid Trading

Systematic grid trading strategy with dynamic level adjustment and risk management.

Concept: "Buy low, sell high" - systematic profit from price oscillations

Attribute	Details
Best Markets	Range-bound, oscillating markets
Risk Level	Medium
Skill Required	Intermediate-Advanced
Timeframe	Hours to days
Key Features	Dynamic Grid Levels, Risk Management, Volatility Adjustment

Breakout Trading

Catch explosive moves when price breaks key levels.

Concept: "Buy strength" - enter when price breaks consolidation

Attribute	Details
Best Markets	Consolidating ranges, high volatility, news-driven
Risk Level	Medium-High
Skill Required	Intermediate
Timeframe	Hours to days

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Strategy Comparison

Strategy	Win Rate	Avg Win	Avg Loss	Best Market
Momentum	40-50%	Large	Medium	Trending
Mean Reversion	60-70%	Small	Small	Range-bound
Breakout	35-45%	Very Large	Medium	Volatile

Choosing Your Strategy

Match to Market Conditions

Trending Market (ADX >25):

• Use: Momentum, Breakout
• Avoid: Mean Reversion

Range-bound Market (ADX <20):

• Use: Mean Reversion
• Avoid: Momentum, Breakout

High Volatility (VIX >30):

• Use: Breakout, Mean Reversion (shorter timeframes)
• Reduce: Position sizes across all strategies

Match to Risk Tolerance

Conservative:

• Primary: Mean Reversion
• Position size: 1-2% risk per trade
• Leverage: 1-2x maximum

Moderate:

• Mix: 50% Mean Reversion, 30% Momentum, 20% Breakout
• Position size: 2-3% risk per trade
• Leverage: 2-5x

Aggressive:

• Primary: Momentum, Breakout
• Position size: 3-5% risk per trade
• Leverage: 5-10x

Building a Strategy Portfolio

Diversification benefits:

• Reduces overall portfolio volatility
• Captures opportunities across market conditions
• Lowers correlation risk

Sample portfolios:

Beginner (1-2 strategies):

• 70% Mean Reversion
• 30% Momentum

Intermediate (2-3 strategies):

• 40% Mean Reversion
• 40% Momentum
• 20% Breakout

Advanced (3-4 strategies):

• 30% Mean Reversion
• 30% Momentum
• 30% Breakout
• 10% Custom/Experimental

Common Mistakes

Over-complexity: Too many indicators and rules Solution: 2-3 clear rules work better

Ignoring market regime: Using same strategy in all conditions Solution: Match strategy to current market

No stop losses: Hoping losing trades reverse Solution: Always use stops, accept small losses

Curve fitting: Optimizing until backtest perfect Solution: Prefer logical strategies, accept imperfect backtests

Strategy Performance Metrics

Key metrics to track:

Metric	Good	Excellent	Purpose
Win Rate	>45%	>60%	Consistency measure
Profit Factor	>1.3	>1.8	Risk/reward efficiency
Sharpe Ratio	>1.0	>2.0	Risk-adjusted returns
Max Drawdown	<20%	<10%	Downside protection

Getting Started

Start with templates:

• Use pre-built strategies
• Learn platform mechanics
• Understand strategy behavior

Test thoroughly:

• Backtest 3-6 months minimum
• Paper trade 5-7 days
• Start live with small positions

Monitor and adapt:

• Track performance vs benchmarks
• Adjust to changing markets
• Rotate underperforming strategies

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Choose strategies that match your style and market conditions. No single strategy works in all markets - diversify and adapt.

Next: Create Your First Bot | Momentum Strategies | Mean Reversion