How our trading bot works

How our trading bot works

We split trading into two parts from the start.

Analysis

strategy, filters, entry point.

Execution

margin, averaging, stops, risk limits.

One part decides «where to enter», the other — «how to open and exit».

Analysis

5 simulations 24/7

3 background — for reference points, 2 for entry point. AI is only an executor — it doesn't decide or adjust anything on its own.

Execution

30/70 + averaging

30% of deposit always in reserve. Entry 0.35%, averaging ×4 and ×2. Max 5 positions. Hard drawdown cap — 30%.

Targets

Reactions, not movements

Short targets: 0.3–5% by timeframe. Trailing stop quickly moves into profit — position almost cannot close in the red.

Philosophy

We don't guess the market — we catch it in reactions

Many think trading means knowing what will happen in X minutes. That's not it. We always work with reference points, confirmations, and filters.

AIOnly an executor

AI doesn't decide or update anything on its own. It simplifies work with algorithms, runs checks, delivers data. The strategy is set by us, not the model.

MethodReferences → confirmations → filters

No «forecasts». First we find the reference point, then we wait for confirmation, then we check filters. Only then — entry.

TargetsShort and guaranteed

We catch the reaction, not the «big move». Often after our take-profit the price goes another +10% — we take our small guaranteed piece and exit.

«We don't try to guess what will happen. We wait until the market itself confirms the reaction — and take the short guaranteed part. The strategy is conservative on risk and active in number of trades».
Analysis · Background

3 simulations run 24/7 in the background

Before the bot even considers entering, it already has a fresh «reference point» for each coin. These reference points are prepared by three parallel simulations.

Simulation 01
Once · at server startup

Cold start

In case of restart or new machine: runs our entire strategy from the past year on all coins — up to the current moment. The output is an up-to-date reference point for each coin. After that, the simulation has done its job.

Simulation 02
Continuous · in parallel

Reference updates

Continuously runs the parallel strategy on all our coins and updates the reference points. The reference is built from: Fibonacci retracements, candles, Fibonacci pivot points, divergences, local maxima/minima, etc.

Simulation 03
Continuous · for opening positions

«Clean» references for entry

The key difference: for the entry itself we look at many filters, but references must be updated without them . Here — volume, RSI value, Ichimoku and Bollinger. This way we always have the most accurate and undistorted reference point.

We trade on market reactions . So extreme lows and highs are critically important benchmarks for us: it's from them that we look for the next entry point.
Analysis · Entry point

Entry decision: 2 more simulations + macro filter

The reference exists — now we need to understand that we're right now in the entry zone and find the specific level.

AOpening zone

The first simulation answers the question: «are we currently in a zone where we can open positions at all?»

  • Fibonacci levels
  • Hidden divergences
  • Bollinger overbought zones
  • Filter check: CMD, BB, volume, etc.

BSpecific entry point

The second simulation looks for which exact level to enter on. Our entries are always at levels, never «at market».

  • Logarithmic support/resistance
  • Fibonacci pivot points
  • Fibonacci retracement levels
  • Trend channels

Complete entry scenario — step by step

01

Fresh reference

From the background simulation, an up-to-date reference point for the coin already exists.

02

Entered the zone

Simulation A confirms: divergence, Fibo zone, BB — we're in a possible entry area.

03

Filters OK

CMD, BB, volume — everything confirms the reaction.

04

Macro filter

totalCap + BTC dominance + USDT dominance — the overall market gives the green light.

05

Level touch

Simulation B holds the specific level. Price touched it — position opened.

If any of the 5 steps lacks confirmation — no entry will happen . The bot doesn't «guess» — it waits until the entire chain aligns.
Execution · Margin and averaging

Our own margin calculation model: 30% always in reserve

We have our own margin and free-margin calculation. From the start, 30% of the deposit is set aside and doesn't participate in calculations — we work with 70% of the deposit.

Client's deposit — how we split it

70% — working margin
30% — reserve (always free)
0%70%100%

For each entry: 0.5% of working margin. Given that working margin is 70% of the deposit, the actual entry volume = 0.35% of the client's total deposit.

Averaging — 2 times

If the market gave us a better point — we add to the position. That's the strategy's advantage: we average by level, not from panic.

Entry
0.35%
of total deposit
+ 1st averaging · ×4
→ 1.75%
addition +1.4%, total 0.35 + 1.4
+ 2nd averaging · ×2
→ ≈ 3%
doubling of current volume
A position that has passed both averagings occupies at most about 3% of the deposit . That's the ceiling for a single trade's size.
Execution · Risk limits

5 positions at once. 30% — hard stop-circuit

The client has two independent limiters — by number of positions and by total drawdown. Both are calculated automatically by the bot.

LimitMax 5 concurrent positions

The bot won't take more than five open trades at once — even if the strategy gives a signal.

Open
Open
Open
Open
Open

Stop-circuitTotal drawdown ≤ 30%

If all open positions combined went to minus 30% of the deposit — all are automatically closed . The client physically can't go beyond 30% drawdown.

  • Calculated cumulatively across all trades.
  • Triggers the same way for everyone — it's the «black-day protection».
  • Together with the 30% reserve, this gives a double safety margin.

Smart limit return — positions «closed in profit»

When a position's stop-loss has already been moved into profit (see next section) — the bot knows this position will close in the positive zone one way or another . So such positions are considered «already completed» for the limit.

Example: 5 of 5 open. In 3 of them, SL is already in profit. The bot considers that 3 more can be opened — totaling temporarily up to 8 positions, because the 3 «green» ones won't stay long.

SL in profit
SL in profit
SL in profit
Open
Open
+ free
+ free
+ free
Execution · Stop-loss in profit

Stop-loss steps upward — the position almost cannot close in the red

Since our targets are short, we use a stepped stop-loss on positive movement. It quickly moves into profit and follows the price.

How the step works example

  • The trigger fires on +0.4% movement.
  • Stop-loss instantly moves to +0.2%.
  • Then — +0.1% step for each position increase.
  • The max such a position can close at — near zero or small profit.
  • In the red — practically never.

The values shown are an illustrative example. Real parameters are configured and may differ.

Ladder for example position

Price moved+0.4%+0.5%+0.6%+0.7%+0.8%+0.9%
SL moves to+0.2%+0.3%+0.4%+0.5%+0.6%+0.7%
SL follows the price with a ~0.2% gap
In a heavily manipulated market, when candle wicks are aggressive and there's a large gap on the exchange between the trigger price and market price, such a position can close at a small loss . These are rare cases and don't break the overall strategy profile.
Timeframes and targets

We trade on 12 timeframes, we analyze — on even more

Take-profit isn't «one-size-fits-all». It depends on the timeframe the position is opened on.

Timeframes for entry

3m10m13m15m21m30m45m89m4h1d3d1w

The analysis at the same time runs on even more timeframes — this gives multi-level confirmation.

0.3%
minimum target

On the shortest TFs.

~1–2%
typical target

On hourly and around.

5%
maximum target

On daily and weekly positions.

Why this way: we catch the reaction, not the entire move. On minutes the reaction is small — we take 0.3%. On weekly, the reversal is more serious — we take up to 5%. Sometimes after our take, the price goes another +10% — that's normal, our task is to take the guaranteed piece, not the maximum.
Summary

The bot in three columns

Analysis5 simulations

Background sim.
3 (start + references + entry)
Sim. for entry
2 (zone + level)
Reference by
Fibo, candles, divs, min/max
Filters
CMD, BB, RSI, Ichimoku, volume
Macro
totalCap + BTC.D + USDT.D
AI role
only executor
Entry
always by level

Executionmargin

Deposit reserve
30% (not used)
Working margin
70%
Entry
0.5% of 70% = 0.35%
1st averaging
×4 → 1.75%
2nd averaging
×2 → ≈ 3%
Max positions
5 simultaneously
Stop-circuit
−30% total

Targets and stopsshort

SL trigger
from +0.3% to +1%
Initial SL
+0.2%
Trail step
+0.1%
Closing in the red
almost impossible
Minimum target
0.3%
Maximum target
5%
Entry TF
3m … 1w (12 of them)

Analysis

Five simulations that check each other. Until reference → zone → filters → macro → level converge, the bot doesn't enter.

Execution

Strict risk model: 30% of deposit always in reserve, max 3% of deposit per trade, max 5 positions total, total drawdown cut at 30%. Take-profits short and guaranteed, stop-loss quickly moves into profit — the position almost cannot close in the red.

This document describes only the general architecture and operating logic of the trading bot, not all strategies and details.