Monitor & automate your strategy with Rules
What are Crypto Strategy Rules?
Let's start with a general definition of strategy: A detailed plan for achieving success in situations such as business, industry, or sport, or the skill of planning for such situations .
Crypto Strategy Rules are preset rebalances of your Strategy structure which get triggered when the rule conditions set by the Strategist are met. In other words, a Strategist sets a structure, and strategy gets automatically rebalanced when the Strategist wants it to get rebalanced.
Crypto Strategies can be managed within a single dimension - structure. With Rules secondary dimension is added to the table and Strategists can manifest their strategy with a combination of structure, templates, and rules.
How do Crypto Strategy Rules work?
- Rule triggers
- Trailing stop-loss rule
It helps when the market takes a sudden dive. A trailing stop-loss rule gets triggered on a Strategist-defined percentage drop, from the high water mark achieved by the strategy.
A stop-loss rule allows you to rebalance once the strategy performance touches a specified percentage, known as the stop price. This allows you to limit your losses.
Example: Setting a rule trigger at -5% would result in an automatic rebalance if your strategy performance drops by 5% from the highest point of performance.
- Profit-take rule
This rule guarantees that a position is closed at or greater than a predefined price point. A profit-take rule that gets triggered on a Strategist-defined percentage increase, is designed to take profits.
A take-profit rule guarantees that a position is closed at or greater than a predefined price point. This allows you to change the structure to one of the stable coins and let acquired profit wait for your next rebalance.
Example: Setting a rule trigger at +10% would result in an automatic rebalance if your strategy performance reaches +10% from the start point.
- Price-based rule
The price-based rule looks not at Strategy's performance but instead at the market price of a specific asset or pairs of assets. Rule triggers on an exact price of a single asset, as defined by the Strategist.
- Time-based rule
Is based on a set time. The strategist decides when, and the rule will automatically rebalance the Strategy to the defined structure. You can also set it to be repeated daily, weekly, or monthly, allowing for periodic rebalances.
- Individual Asset in Structure Rules
During rule setup select the "Individual asset in structure" option.
This is an additional option that targets individual assets within Strategy's structure and is available for the stop-loss, profit-take, and price-based rules, giving Strategist added flexibility with rebalancing. Using it, you can monitor one asset and trade it for a different asset when the rule condition is met - be it for taking profits or stopping losses, without changing the rest of the Strategy’s structure. What’s more, you’re not only limited to the fiat pair of the asset - you can monitor all pairs on the platform!
You can set the target strategy structure upon rule creation or you can first set up a good library of templates where each template represents a direct response you have in mind for a specific market scenario. Then you can use preset templates during the rules creation. For example, you could create two templates “Bull Template” and “Bear template”, where Bull Template goes all in and has zero stable coins weight, while bear template protects your investment and is very heavy on stable coins.
Templates: Login > My Strategy > Select your Crypto Strategy > Structure tab > Templates tab > Follow the on-screen instructions
Strategists can create/choose between two types of templates:
- Structure Templates
Strategy structure templates for faster setting up rules or manual rebalancing.
- Rule Trigger Templates for Individual Asset in Structure
Rule trigger template for individual asset in strategy structure rebalance for faster setting up rules.
- What happens when the rule condition is met?
When the rule condition is met, the rule automatically triggers rebalance to a specified structure (check here how rebalance works).
Crypto Strategy will automatically start to rebalance to the target structure with a selected trading algorithm:
Best price (slower), Regular, or Best time (accelerated). Description of trading algorithms is available here.
Once the rule is triggered, it is automatically turned off, to prevent multiple rebalancing in case the asset price would be volatile around the price trigger point. Exception is with Time-based rules and individual asset in structure option at Trailing stop-loss and Profit-take rules, where you can set the rule to repeat.
More importantly, once the rule is triggered we will also notify you via email and our new notification center, so we suggest you keep those notifications turned on.
- Rules trigger mechanics explained
For a rule to get triggered, the following parameters have to be met:
- Rule price condition is met
- Rule price condition is satisfied for at least 5 min
- If the price increases above the rule price condition, the 5 min timer is reset
- If the price oscillates around price condition, the condition timer might get reset several times, appearing as if rules are not triggering
- To prevent several rule condition resets, please try experimenting with a little bit of "buffer" between obvious price resistance levels, where prices tend to oscillate a lot, resulting in unfavorable conditions to trigger the rule
To prevent unwanted rebalances caused by sudden spikes, each rule is triggered after the trigger price has been met for at least 5 minutes. Each time a price condition bounces back, the 5-minute timer is reset.
- Setup. How do I control the rules?
In your Crypto Strategy view, go to the “Rules”. tab This is where you may create new rules, and see rules that are already applied to your Crypto Strategy. Each applied rule has a toggle switch button that allows you to turn the rule ON/OFF.
- What should you watch out for?
You can set multiple rules per strategy, yet it is very important to understand how the rules triggers overlap. If you set 2 different rules that both meet price triggers at the same time, both rules will be triggered and both rebalances will be applied without knowing which one will win. This may result in unwanted behavior so please be careful.
Please check all/other rebalancing options here
- MANUALLY - adjusting/changing the Crypto Strategy structure
- RULES - advanced automatic rebalance triggered by preset rules
- NIGHTWATCH - simplified automatic rebalance - "Protect my assets for the next 12 hours."
You can also take a look at our Blog articles: