Strategy: Bot Scalpello (Short)

Hello everyone, perhaps in the next few days(weeks?) we will see how the price of BTC and Alts suffers a downward or sideways trend so I prepare a bot to try to exploit this if it happens but be resilient if everything changes.
The objective of the Bot is to try to be able to carry out a small operation using two indicators that can combine to detect a sudden downward movement and enter and exit with the help of a tight DCA. The protection is an SL that does not go far away to try to perform more operations to recover any loss trade…
The backtest results are good but let’s see how it goes. I hope someone finds it useful and can improve it.

https://app.gainium.io/bot/66cfe2c4fc93c6086cc8d5db?a=1895&aid=share-bot&share=bfde7fb2-08cb-45c3-bf31-2f533b433b7b




Markus Variation
’ve tried it with 5min -1% and got even better results. You can than increase the leverage to 10x
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Perez Variation
https://app.gainium.io/bot/66d2d153ecb6591c9dc7c1b5?a=2240&aid=share-bot&share=565132d6-6a86-4772-97a7-d98e3cd8e59d
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EdleArth Variation
https://app.gainium.io/bot/backtests?a=1904&aid=share-backtest&backtestShare=85dcbc06-31cd-4586-aca6-bb878d015c1d
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Lo scalpello scolpisce solo dove l’artista lo punta

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Beautiful equity curve! Is this boy behaving nice on longs also?

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Yes it iis beautiful curve, I put on it a lot on effort to destroy it, but survive.
There is no Scalpello (Long)yet but maybe I will try to do it on the weekend :smile:
Feel free to modify this one and post if you find some variation.

@diegopiolo Thanks for this strategy, very interessting.

I’ve tried it with 5min -1% and got even better results. You can than increase the leverage to 10x

Jan 24 to August 24


Bearmarket Dec. 21 to Nov 22 (SL -5% = -50%)

Bearmarket Dec. 21 to Nov 22 (SL -9% = -90%)

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WoW Markus! Thank you! Incredible progression don’t see that coming…

Also playing around with this.
10x Leverage
Past 365 days

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Many thanks Joya for your test! I’m wonder how far that equity curve can go…lol

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How much in % of the total balance represents the 200$ base order in your preset?

A version with % from free or total balance would be useful to make the strat ready to work for anyone no matter the initial budget, also would be useful for compounding.

I maximised the allocation percentages in this preset (15% USDT free and 12% DCA order amount). The equity curve is not that nice but the net result is higher. I will be running a paper version of this strategy :wink:

Scalpello %free

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First of all, thanks a lot for the tests, they really help to increase the potential of the strategy! I think the 4-Eyes Check that you and the other guys do is invaluable.
The amount I usually put in is something I could lose by testing the bot in a Real Life Test. My experience going from synthetic testing to “In the Wild” has shown me that you should be prepared to see even more stress, that’s why I also wrote about the Monte Carlo Simulation. I think it’s a test that should be done when you find a robust setup in your bot.
I hope you have time to tell us how that test goes! :slight_smile:

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And you are right to do it like this, never put more money that you can afford to risk :grin: I think I was not clear enough but I really was asking the question about the numbers here

Because when you backtest is not the same to put 200$ in base order if you have 400$ in total than if you have 1 millon$, the equity percentage will differ drastically. I also understand that this is something personal and that people may want to keep it more or less secret. This is the main reason why I like to talk in % from total budget rather than in $ from an unknown budget. Also when you share a strat with % from total budget, the strat is adaptable to any portfolio and potentially compounding so double advantage :wink:

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For my test I am using my Inverse Perpetuals account for BTC and using 1% of balance. 1% for base order and 1% for Safety Order

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are you italian brother? love the results and the concept I think you are making really nice strategies - I will have a look and try to push it on SPOT

Have you ever built a strategy moving away from indicators, timeframes, coins, etc and taking into account only how to profit from the movement of the price?

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Hey Rossano thanks for your words! My granparents are from Spain and Italy :slight_smile: About work with the Action Price, no really, I think you need a lot experience and some subjetive assumption/intuition to make it work, but I want to learn more.
I will really apreciate your insights of your tests.

Honestly, I don’t know much about how compounding works. My experience is that if you have many losing trades in a row, compounding doesn’t make a difference, but what you just showed me surprised me. I think it’s partly due to the nature of this bot: a good win ratio and a very good profit. I’ve never worked with bots in the way Gainium allows, I’ve always assigned a fixed amount to my bots and I guess I still do. But I’m willing to learn from whatever you can tell me. My experience with bots was with TV and Pionex, the results were mixed due to the limitations (real money/bot limitations).

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I’m sure you will understand it super fast @diegopiolo :grin: Let’s look at this situation

Imagine you have $200 and want to invest it.

Simple interest is like renting money. So, if you have $200 and gain 5% per year, you’ll earn $10 each year.

Compound interest is like money making money. Not only do you earn on your initial $200, but you also earn on the interest you’ve already earned.

Here’s an example:

  • Year 1: You invest $200 and earn 5% per year. You earn $10 .
  • Year 2: You now have $210. If you use a simple interest yoy earn again $10. If you use gompounding you earn 5% from $210 which is $10.50.
  • Year 3: You have $220.50. You earn 5% interest on this amount, which is $11.025.

As you can see, the amount of interest you earn increases each year because you’re earning interest on a larger amount.

This is particularly interesting when calculating daily interest.

Let’s imagine you earn 1% per day. With compounding you will end with as much as $7,556.69, with simple interest you will have $900.

You can play with this calculator Daily Compound Interest Calculator

Over time, compounding interest can significantly increase your investment but if there are loosing days you will have pretty big loosing amounts that you must mentally handle

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Thanks Perez! I think got this, the problem I have is maybe my bots needs more time to compound in a way they can be seen, at least for me. In the test I runned they lost more compounding.
I`m actually working on improve my bots based on some interesting videos/readings
expectancy curve 2

This graph shows where this bot is based on the book of Nick Radge and maybe is why the power of compounding you showed me is so clear.
By the way, the link to the book: https://www.thechartist.com.au/images/Trish/Successful_Stock_Trading_by_Nick_Radge.pdf
I think is a good reading

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Thank you @diegopiolo, this short strategy is fantastic! It’s actually really impressive. By tweaking a few parameters, I managed to achieve this. However, be careful, it’s way too over-optimized to be used without risk.


Backtest from 24 Oct. 2023

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Hey Edie thanks, glad it helps :slight_smile: if you dont mind, can you share a backtest of your version? I will try in some moment update the post with the done by others. in this way new and old user can return to the Strategy and try different variant if we have luck a superior one will apear (as the virus do :slight_smile: )

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I think on this the key factor is the pairing which is almost flat or sideways for most of the tine

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I hope @EdleArth can show us the variation or… The new “Strain” :smile: