crypto_trader/docs/user_manual/strategies.md

# Strategy Guide

Learn how to create, configure, and manage trading strategies in Crypto Trader.

## What is a Strategy?

A trading strategy is a set of rules that determine when to buy and sell cryptocurrencies. Strategies analyze market data and generate trading signals.

## Pre-built Strategies

Crypto Trader includes several pre-built strategies:

### RSI Strategy

Uses the Relative Strength Index to identify overbought and oversold conditions.

- **Buy Signal**: RSI below 30 (oversold)
- **Sell Signal**: RSI above 70 (overbought)
- **Parameters**: RSI period (default: 14)

### MACD Strategy

Uses Moving Average Convergence Divergence for trend following.

- **Buy Signal**: MACD crosses above signal line
- **Sell Signal**: MACD crosses below signal line
- **Parameters**: Fast period, slow period, signal period

### Moving Average Crossover

Uses two moving averages to identify trend changes.

- **Buy Signal**: Short MA crosses above long MA
- **Sell Signal**: Short MA crosses below long MA
- **Parameters**: Short MA period, long MA period

### Confirmed Strategy (Multi-Indicator)

Requires multiple indicators (RSI, MACD, Moving Average) to align before generating signals. This significantly reduces false signals by requiring confirmation from 2-3 indicators.

- **Buy Signal**: When majority of indicators agree on buy signal
- **Sell Signal**: When majority of indicators agree on sell signal
- **Parameters**: 
  - RSI period, oversold, overbought thresholds
  - MACD fast, slow, signal periods
  - MA fast, slow periods, MA type (SMA/EMA)
  - Minimum confirmations required (default: 2)
  - Which indicators to require (RSI, MACD, MA)

### Divergence Strategy

Detects price vs. indicator divergences which are powerful reversal signals. Works exceptionally well in ranging markets.

- **Buy Signal**: Bullish divergence (price makes lower low, indicator makes higher low)
- **Sell Signal**: Bearish divergence (price makes higher high, indicator makes lower high)
- **Parameters**:
  - Indicator type: RSI or MACD (default: RSI)
  - Lookback period for swing detection (default: 20)
  - Minimum swings required (default: 2)
  - Minimum confidence threshold (default: 0.5)

### Bollinger Bands Mean Reversion

Trades mean reversion using Bollinger Bands. Buys at lower band in uptrends, exits at middle band. Works well in ranging markets.

- **Buy Signal**: Price touches lower Bollinger Band in uptrend
- **Sell Signal**: Price reaches middle band (profit target) or touches upper band (stop loss)
- **Parameters**:
  - Bollinger Bands period (default: 20)
  - Standard deviation multiplier (default: 2.0)
  - Trend filter enabled (default: True)
  - Trend MA period (default: 50)
  - Entry threshold (how close to band, default: 0.95)
  - Exit threshold (when to take profit, default: 0.5)

### Consensus Strategy (Ensemble)

Combines signals from multiple strategies with voting mechanism. Only executes when multiple strategies agree, improving signal quality through ensemble methods.

- **Buy Signal**: When minimum number of strategies agree on buy
- **Sell Signal**: When minimum number of strategies agree on sell
- **Parameters**:
  - Strategy names to include (None = all available)
  - Minimum consensus count (default: 2)
  - Use performance-based weights (default: True)
  - Minimum weight threshold (default: 0.3)
  - Strategies to exclude

## Strategy Management Page

The Strategy Management page provides a comprehensive interface for creating, editing, and managing all your trading strategies.

### Accessing Strategy Management

1. Click on **Strategies** in the navigation menu
2. You'll see a table listing all your strategies with:
   - Strategy name and description
   - Strategy type
   - Trading symbol
   - Timeframes
   - Status (Enabled/Disabled)
   - Paper Trading mode
   - Action buttons (Start, Stop, Edit, Delete)

## Creating a Strategy

1. Navigate to the **Strategies** page
2. Click **Create Strategy** button
3. The strategy dialog has three tabs:

   **Basic Settings Tab**:
   - **Name**: Give your strategy a descriptive name (required)
   - **Description**: Optional description
   - **Strategy Type**: Select from RSI, MACD, Moving Average, Confirmed, Divergence, Bollinger Mean Reversion, Consensus, DCA, Grid, or Momentum
   - **Symbol**: Trading pair (e.g., BTC/USD)
   - **Exchange**: Select the exchange (required)
   - **Timeframes**: Select one or more timeframes (1m, 5m, 15m, 30m, 1h, 4h, 1d)
   - **Paper Trading Mode**: Toggle for paper trading (recommended for testing)

   **Parameters Tab**:
   - Configure strategy-specific parameters
   - Parameters vary by strategy type
   - Default values are provided for all parameters
   - See strategy-specific sections below for parameter details

   **Risk Settings Tab**:
   - **Position Size (%)**: Percentage of capital to use per trade
   - **Stop Loss (%)**: Maximum loss percentage before exit
   - **Take Profit (%)**: Profit target percentage
   - **Max Position Size**: Optional maximum position size limit

4. Click **Create** to save the strategy

The strategy will appear in the strategies table. New strategies start as **Disabled** - you must enable and start them manually.

## Managing Strategies

### Starting a Strategy

1. Find the strategy in the table
2. Click the **Start** button (green play icon)
3. The strategy status will change to **Enabled** and it will begin generating signals

### Stopping a Strategy

1. Find the running strategy in the table
2. Click the **Stop** button (red stop icon)
3. The strategy will stop generating new signals

### Editing a Strategy

1. Click the **Edit** button (pencil icon) for the strategy
2. Modify any settings in the dialog
3. Click **Update** to save changes

**Note**: Strategy type cannot be changed after creation. You must create a new strategy with a different type.

### Deleting a Strategy

1. Click the **Delete** button (red trash icon)
2. Confirm the deletion in the dialog
3. The strategy and all its configuration will be permanently deleted

## Strategy Types

### DCA (Dollar Cost Averaging)
Invests a fixed amount at regular intervals (daily, weekly, or monthly). Ideal for long-term accumulation.

**Parameters:**
- Amount: Fixed investment amount per interval
- Interval: Daily, weekly, or monthly
- Target Allocation: Target portfolio allocation percentage

### Grid Trading
Places buy orders at lower price levels and sell orders at higher levels. Profits from price oscillations.

**Parameters:**
- Grid Spacing: Percentage between grid levels
- Number of Levels: Grid levels above and below center price
- Profit Target: Profit percentage to take

### Momentum
Trades based on price momentum with volume confirmation. Enters on strong upward momentum, exits on reversal.

**Parameters:**
- Lookback Period: Period for momentum calculation
- Momentum Threshold: Minimum momentum to enter
- Volume Threshold: Volume increase multiplier for confirmation
- Exit Threshold: Momentum reversal threshold

## Strategy Configuration

### Basic Settings

- **Name**: Descriptive name for your strategy
- **Symbol**: Trading pair (e.g., BTC/USD)
- **Timeframe**: Data timeframe (1m, 5m, 15m, 1h, 4h, 1d)
- **Enabled**: Turn strategy on/off

### Parameters

Each strategy has specific parameters:

- **RSI Strategy**: RSI period, overbought threshold, oversold threshold
- **MACD Strategy**: Fast period, slow period, signal period
- **Moving Average**: Short period, long period, MA type (SMA/EMA)
- **Confirmed Strategy**: RSI, MACD, and MA parameters, minimum confirmations
- **Divergence Strategy**: Indicator type, lookback period, confidence threshold
- **Bollinger Mean Reversion**: Period, std dev, trend filter settings
- **Consensus Strategy**: Strategy selection, consensus threshold, weighting options

### Risk Settings

- **Position Size**: Amount to trade per signal
- **Max Position**: Maximum position size
- **Stop Loss**: Percentage, price level, or ATR-based dynamic stop
  - **ATR-based stops**: Automatically adjust stop distance based on market volatility
  - **ATR Multiplier**: Multiplier for ATR calculation (default: 2.0)
  - **ATR Period**: Period for ATR calculation (default: 14)
- **Take Profit**: Profit target
- **Trend Filter**: Optional ADX-based trend filter to avoid trading in choppy markets

## Multi-Timeframe Strategies

Strategies can use multiple timeframes:

1. Primary timeframe for signal generation
2. Higher timeframes for trend confirmation
3. Lower timeframes for entry timing

## Strategy Scheduling

Strategies can be scheduled to run:

- **Continuous**: Runs on every new candle
- **Time-based**: Runs at specific times
- **Condition-based**: Runs when conditions are met

## Managing Strategies

### Enabling/Disabling

- Toggle strategy on/off without deleting
- Disabled strategies don't generate signals
- Useful for testing multiple strategies

### Editing Strategies

1. Select the strategy
2. Click "Edit"
3. Modify parameters
4. Save changes

### Deleting Strategies

1. Select the strategy
2. Click "Delete"
3. Confirm deletion

## Strategy Performance

Monitor strategy performance:

- **Win Rate**: Percentage of profitable trades
- **Total Return**: Overall return
- **Sharpe Ratio**: Risk-adjusted return
- **Max Drawdown**: Largest peak-to-trough decline
- **Number of Trades**: Total trades executed

## Best Practices

1. **Backtest First**: Always backtest strategies before live trading
2. **Start Small**: Use small position sizes initially
3. **Monitor Performance**: Regularly review strategy results
4. **Adjust Parameters**: Optimize based on performance
5. **Use Paper Trading**: Test changes in paper trading first

## Creating Custom Strategies

For advanced users, you can create custom strategies:

1. See [Developer Guide](../developer/creating_strategies.md)
2. Extend the `BaseStrategy` class
3. Implement signal generation logic
4. Register your strategy