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
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
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
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
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
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
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
Best Markets
Consolidating ranges, high volatility, news-driven
Risk Level
Medium-High
Skill Required
Intermediate
Timeframe
Hours to days
Strategy Comparison
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:
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
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
Last updated