Welcome to the third tutorial on how to use CryptoHero’s Strategy Designer effectively. In case you missed it, take a look at previous Strategy Designer’s Use Cases (Case I and Case II).

In this third instalment of Exploring Use Cases with CryptoHero’s Strategy Designer, we take a look at one of the common chart patterns found in almost all coins – the infamous “L” chart.

The L chart is simply a steep drop in the price of the coin followed by a sustained period of range bound trading. For those who have traded cryptos for years, the “L” chart pattern should be very familiar. In fact, a recent “L” chart pattern was just formed a day ago. Take a look at the BTC/USDT chart below.

CryptoHero Strategy Designer

The chart above shows two bots – A and B – that are trading BTC. Using Strategy Designer, a trader can setup Bot A to watch for the following Entry Conditions

  • Average RSI over last >=3 periods
  • Base Order = >=50%

Bot A’ s exit condition can be a small 1%. When Bot A exits, it will call Bot B using our Strategy Designer’s daisy chain feature. Bot B is configured to trade within a range-bound market. The trader can also configure Bot C to be pretty similar to Bot B so that Bot B can call Bot C which in turn will return the call to Bot B.

This is how the daisy chain would look like

Bot A > Bot B > Bot C > Bot B > [repeats]

The trader can manually re-activate Bot A if he or she feels the market could be turning south again.