Take into account the fact that the Activity strategy does not implement a mechanism for determining the “sign” of an order and the strategy does not distinguish whether it was a buy (green) or sell (red) order. And in fact, the strategy’s detection of the order “$200” can be in a series of both:
1) positive orders (green to buy): 200,200,200,200
2) negative orders (red to buy): -200,-200,-200,-200
3) mixed orders (both green and red): 200,-200,200,-200
(*signs are arranged conventionally to make the explanation clearer).
That is, the Activity strategy can detect a series of green orders that may lead to a price increase, it can detect red orders that may lead to a price decrease, and it can detect mixed orders that may cause the price to stay in the same place.
Note that if the coin is “heavy” with dense stacks, a series of orders of $100-200 will not lead to a rise or fall in price, but we can be guided by the behaviour of bots, which in the background start small frequent buying or selling of coins with the same orders, which may signal their interest in the coin. If the coin is “medium heavy” with more rarefied stacks, then a series of green orders of 20 pieces, e.g. $20000 each, totalling $400000, can significantly push the price up and vice versa, a series of large sell orders can cause the price to fall.
Therefore, it is recommended to create several Activity strategies with different time frames and different order ranges (narrower):
Activity1: $100…$300,
Activity2: $500…$700,
Activity3: $1000…$1300,
Activity4: $10000…$15000
, etc.
And each strategy can be used for different scenarios: the start of the bot, manipulations of traders and so on.
In addition to the fact that the Activity strategy will be able to recognise a series of orders of the same size, you will need additional filter settings (deltas, volumes, EMA) to confirm the growth or fall of the price and in which direction you should open a position.
Activity strategy can also be recommended as a detector for manual trading or as a Master strategy, which will work together with another Slave strategy, which in turn will confirm the entry into a deal and place buy orders.
What are the peculiarities of the Activity strategy and how can it be better used for trading in the MoonBot terminal?
:
Strategy settings