Overview
The DMAC Trading bot implements a popular technical analysis strategy that uses two moving averages - a shorter (faster) and a longer (slower) period. When the faster moving average crosses above the slower one, it signals a potential uptrend and triggers a buy. The bot can exit positions either based on moving average crossovers or specified profit/loss targets.
Details
The strategy uses two Simple Moving Averages (SMA):
Short-term MA: More responsive to recent price changes
Long-term MA: Provides a longer-term trend perspective
Trading signals are generated when:
Buy Signal: Short-term MA crosses above Long-term MA
Sell Signal: Either:
Short-term MA crosses below Long-term MA (indicator-based exit)
Price reaches profit target or stop loss (target-based exit)
How to Configure the Bot
General Settings
Exchange Platform: Select your preferred exchange
Trading Account: Choose the account for bot operations
Market: Select the trading pair (e.g. BTC/USDT)
Starting Capital: Amount of quote currency to allocate
Entire amount is used for purchases
Profits are automatically reinvested
Strategy Settings
Candle Timeframe: Chart interval for analysis
Options: 1m, 5m, 15m, 30m, 1h, 4h, 1d
Lower timeframes = more frequent signals
Higher timeframes = stronger but fewer signals
Long Moving Average Period: Slower MA period
Default: 52 periods
Range: 2-200 periods
Higher values = smoother, slower signals
Short Moving Average Period: Faster MA period
Default: 28 periods
Range: 2-200 periods
Lower values = faster, more responsive signals
Exit Strategy: Choose between:
Profit Target or Stop Loss: Exit at specified profit/loss levels
Indicator Confirmation: Exit on MA crossover signals
Cooldown Period: Candles to wait after closing a position
Helps avoid immediate re-entry in choppy markets
Set to 0 for continuous trading
Profit & Risk Management
(Only visible when using "Profit Target or Stop Loss" exit strategy)
Profit Target: Percentage gain to trigger position close
Default: 2%
Can set values above 100% for longer-term trades
Stop Loss: Percentage loss to trigger position close
Default: 1%
Set to 100% to effectively disable stop loss
Frequently Asked Questions
How do Moving Average periods work together?
The relationship between the two periods is crucial:
Closer periods (e.g., 10 and 20):
More frequent signals
Faster reactions to price changes
Higher chance of false signals
Further apart periods (e.g., 20 and 50):
Fewer but stronger signals
Better for trending markets
Reduced false signals
Which exit strategy should I choose?
Indicator Confirmation:
Better for trending markets
Lets profits run in strong trends
May give back some profits when trend reverses
More suitable for longer-term trading
Profit Target or Stop Loss:
Better for ranging markets
Locks in profits at specific levels
Limits losses with clear stop loss
More suitable for shorter-term trading
How should I choose timeframes?
Consider your trading style:
Short-term trading:
Use 1m-15m timeframes
Smaller profit targets (0.5-2%)
Tighter stop losses
More frequent trades
Medium-term trading:
Use 1h-4h timeframes
Moderate targets (2-5%)
Standard stop losses (1-3%)
Daily trades
Long-term trading:
Use 4h-1d timeframes
Larger targets (5%+)
Wider stop losses
Weekly or monthly trades
What's the purpose of the Cooldown Period?
After closing a position, the bot waits for the specified number of candles before taking new trades. This helps:
Avoid choppy market conditions
Reduce overtrading
Allow trends to establish
Minimize commission costs
How does capital management work?
The bot:
Uses entire available capital for initial purchase
Updates available capital after each trade
Automatically reinvests profits
Accounts for trading fees (0.5% reserved)
Remember that moving average strategies work best in trending markets. In sideways or highly volatile markets, consider:
Using longer timeframes
Increasing the difference between MA periods
Setting appropriate profit targets and stop losses
Implementing longer cooldown periods