In the Auto-Trade module of the Extreme Volatility Monitor, TradeDirection determines how the bot reacts to market movements when extreme volatility is detected.
You can choose between Reverse and Momentum depending on your trading strategy.
🔹 Reverse Direction
Logic: Trades against the immediate price movement.
Behavior:
- Pump → Place Short (expecting a reversal after a sharp upward move)
- Crash → Place Long (expecting a rebound after a sudden drop)
Purpose:
- Designed for mean-reversion strategies.
- Captures profits from short-term reversals after extreme moves.
Example:
- BTC spikes +2% in 5 minutes → Bot enters a short position expecting a pullback.
- ETH crashes -1.8% → Bot enters a long position anticipating a rebound.
🔹 Momentum Direction
Logic: Trades in the same direction as the movement.
Behavior:
- Pump → Place Long (following the upward momentum)
- Crash → Place Short (riding the downward trend)
Purpose:
- Designed for trend-following or breakout strategies.
- Captures profits from strong continuation moves.
Example:
- SOL rises +1.5% rapidly → Bot enters a long position to ride the upward trend.
- BTC drops -2% → Bot enters a short position to capitalize on the crash.
⚖️ Choosing Between Reverse and Momentum
| Trade Direction | Strategy Type | Target Market Move |
|---|---|---|
| Reverse | Mean-Reversion / Reversal | Opposite to sudden spikes/crashes |
| Momentum | Trend-Following / Breakout | Follows the direction of the move |
- Reverse → Use when expecting quick corrections
- Momentum → Use when expecting strong, sustained moves
🚀 Summary
Reverse → Go against the current movement
- Pump → Short, Crash → Long
- For mean-reversion strategies
Momentum → Go with the current movement
- Pump → Long, Crash → Short
- For trend-following strategies
Choose the direction that matches your trading logic and risk appetite.