Traders often use the volatility stop to protect trades dynamically, adjusting the stop price gradually based on the asset's volatility.
Just like the volatility stop is a great way to capture trend reversals on the downside, the opposite applies as well. Therefore, another useful application of the volatility stop is to add it to a trading system to signal potential trend reversals to catch a good buy opportunity.
ENTRY
- When the price crosses above the Volatility Stop
EXIT
- When the price crosses below the Volatility Stop
For this strategy, the Volatility stop's multiplier is set to 3 to allow more flexibility to the trade. The strategy is designed for medium-term trades.
Based on the backtest result from a sample of crypto trading pairs, the most profitable time frame is the 2-hr.
The strategy works well with both crypto-to-crypto and crypto-to-fiat pairs. To make results more realistic, a trading fee of 0.1% is added to the script. The fee is aligned to the base fee applied on Binance.
if I want run this strategy using coinrule should I use a trading view signal OR can I create the strategy in coinrule and use it for ANY coin ?
makwanadushyant960010
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very good strategy, how can we add short trade, like when long exit we initiate a short trade and close short on long trade if you add that if will be great help.