ADX
Use the ADX indicator to determine when to buy and sell. This indicator measures the strength of a trend, allowing Gunbot to buy during strong uptrends and sell during strong downtrends. Gunbot uses ADX together with Directional Index.
ADX is a popular technical analysis tool used by traders to identify trends in the market. It is calculated using a series of calculations that take into account the highs and lows of price movements over a specified time period. Generally, an ADX reading above 25 indicates a strong trend, while a reading below 20 suggests a weak trend. The ADX can be used in conjunction with other indicators to confirm trading signals and help traders make informed decisions.
How to work with it​
Buy method conditions​
Buy allowed when ADX value exceeds 'ADX level' and DI+ is above DI-.
Sell method conditions​
Sell allowed when ADX value exceeds 'ADX level' and DI- is above DI+.
Gain protection is optional for this method.
Be aware that this can lead to sell orders below your break-even point.
Trading example​
Example of how trading with this strategy can perform. Details and settings.
The infographic below describes what triggers trades with this strategy.
ADX Strategy settings​
Buy settings​
| Label | Config Parameter | Default Value | Detailed Description |
|---|---|---|---|
| Buy enabled | BUY_ENABLED | true | Enables the ability for you to place buy or long orders. When enabled, the strategy will initiate purchases according to other defined parameters. |
Sell settings​
| Label | Config Parameter | Default Value | Detailed Description |
|---|---|---|---|
| Sell enabled | SELL_ENABLED | true | Allows the strategy to place sell or short orders. |
| Double check gain | DOUBLE_CHECK_GAIN | true | Ensures a positive gain is achieved before allowing a sell order to proceed. Disabling this setting allows for the possibility of selling at a loss based on other indicators' suggestions. |
| Gain | GAIN | 1 | Sets the gain target above break-even, expressed as a percentage. Adjustable range is between 0.1% and 5%, ensuring flexibility in targeting desired profits. |
| Count sell | COUNT_SELL | 9999 | Configures the number of sell orders allowed before disabling the trading pair. This limits the number of sales transactions since adding the pair, offering a control measure on trading frequency. |
Indicators​
| Label | Config Parameter | Default Value | Detailed Description |
|---|---|---|---|
| Period | PERIOD | 15 minutes | Specifies the duration of candlesticks used in the calculation of indicators. This should align with supported periods available on your exchange. The value represents the candlestick duration in minutes. |
| ADX level | ADX_LEVEL | 25 | Sets the minimum trend level required to initiate trades, with a configurable range from 1 to 99. This setting helps in identifying the strength of the trend needed to consider entering a trade. |
| DI period | DI_PERIOD | 14 | Defines the number of candlesticks to use for calculating the ADX. Adjustable from 10 to 50, allowing you to tailor the sensitivity of the ADX indicator to the desired timeframe. |
Overview of effects on different order types​
| Config Parameter | Affected Order Types | Not Affected Order Types |
|---|---|---|
| Buy Enabled | Strategy buy, DCA buy, RT buy, RT buyback | Strategy sell, Stop limit, Close, RT sell |
| Buy Level | Strategy buy | Strategy sell, Stop limit, Close, RT sell, DCA buy, RT buy, RT buyback |
| Sell Enabled | Strategy sell, Stop limit, RT sell | Strategy buy, RT buy, RT buyback, Close, DCA buy |
| Gain | Strategy sell | Strategy buy, RT buy, RT buyback, RT sell, Close, DCA buy, Stop limit |
| Period | Strategy sell, Strategy buy, DCA buy (when using an indicator to trigger) | RT buy, RT buyback, RT sell, Close, Stop limit |
| ADX Level | Strategy sell, Strategy buy | RT buy, RT buyback, RT sell, Close, Stop limit, DCA buy |
| DI Period | Strategy sell, Strategy buy | RT buy, RT buyback, RT sell, Close, Stop limit, DCA buy |