thetradingparrot
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Let's build the best short bot
🕑 Added 2021-06-26 10:27:51 +0000 UTCNext week I'd like to work on building short bots for futures.
Remember that you can use them with 1X and therefore not apply any leverage. It will still be based on contracts but at a similar risk to running a spot bot.
For a short signal we could use many things:
- I can build a signal. This would take time and trial and error.
- I can reuse any existing signal out there. It needs to be open-source. For example the SELL divergence from MarketCipher (we are currently using the BUY divergence one).
I just received a message from a member who gave a great idea: he suggested using super trend for a sell signal.
I haven't backtested it yet or anything, but it'd be great if you already know other great SELL signals if you could leave a comment in this article with your suggestions. I can have a look on Monday and and see which ones are best. The tester team can also help a lot here by taking some of the suggestions and filtering the good, the bad from the ones with outstanding results!
Leave a comment below with "what is your favourite SELL / SHORT signal among all"?
Extra: next week I need to add sell signals to the "3c simulator" mode of the backtest script so you can also test short bots without needing to use the "external indicator" mode which is for more advanced users.
Comments
Short bot with +ADx/-ADX, with the cross emas.. You might check Neil ramos on youtube, im sure you can sort out something similar or improve it
Short bot lightly leveraged would be sweet, great idea!
I’ve found that Shorts are good with MA crosses when above the daily developing pivot point. Im using EMA6 and EMA13 cross on 24 and 30 min timeframes depending on the coin, with RSI filtering. I’m very conservative with small TP and TTP% and always with a stop loss or a buy trigger from the same signal closing the Short at market price. Losing $$ is better than getting liquidated.
ZigZag++ indicator on TradingView is more accurate. Although I think this suffers from repainting
I have a funny one you should check out... btcusdt 1d chart. Turn on the Moon Phases indicator on Trading View. It correlates pretty closely.
Yeh so are you running short bots but with no safety orders at all?
https://3commas.io/marketplace/110
Since you have numerous RSI and QFL bots you can easily add short signals: RSI > 70, or QFL when rise above fractalUp by 3.5%
Also consider using stops. Shorts are way more dangerous. In a long position the price can fall max 100% and it's unlikely it will ever get that far, whereas a in a short the price can pump and the sky's the limit. If Elon Musk tweets about Doge while you're in a short position and it rallies 200% you're in trouble, especially if you're levered. You can't DCA your way out of that. Also, doubling down is way more expensive because the price went up 5% each time.
Heikin-Ashi exit. Wait for a green close after a red rally.
