Progressive Placing Order Strategy - User Guide

Overview

The Progressive Placing Order Strategy uses a percentage-based approach to dynamically allocate your available balance across trades. Instead of using a fixed trade amount, this strategy calculates order size as a percentage of your current available balance, allowing your position sizes to grow or shrink naturally with your account performance.

How It Works

When TradeAmountPer is set to a value greater than 0, the bot will:

  1. Fetch your current available balance from the exchange
  2. Calculate order size as: Available Balance × TradeAmountPer / 100
  3. Place the order using this calculated amount
  4. Skip strategy multipliers to prevent over-leveraging

Example

yaml
TradeAmountPer: 25  # Use 25% of available balance per trade

Scenario:

  • Available Balance: $1,000
  • TradeAmountPer: 25%
  • Order Size: $250 (25% of $1,000)

After a successful trade that increases your balance to $1,200:

  • Available Balance: $1,200
  • TradeAmountPer: 25%
  • Next Order Size: $300 (25% of $1,200)

Configuration Settings

Required Configuration

yaml
# In your trade settings YAML file
InitialTradeAmount: 100.0      # Fallback amount (used if balance fetch fails)
TradeAmountPer: 25             # Percentage of available balance (0 = disabled)

Recommended Settings

yaml
# Conservative Approach (Recommended for Beginners)
TradeAmountPer: 25             # Risk 25% per trade
MaxConcurrentTrades: 1         # Only 1 trade at a time
Leverage: 10-15x               # Moderate leverage for BTC
MarginMode: isolated           # Always use isolated mode

# Moderate Approach
TradeAmountPer: 20             # Risk 20% per trade
MaxConcurrentTrades: 2         # Max 2 concurrent trades
Leverage: 10x                  # Conservative leverage
MarginMode: isolated

# Aggressive Approach (Higher Risk)
TradeAmountPer: 15             # Risk 15% per trade
MaxConcurrentTrades: 3         # Max 3 concurrent trades  
Leverage: 5x                   # Lower leverage for safety
MarginMode: isolated

Recommended Trading Approach

1. Symbol Selection

  • Disable Symbol Sync: Don't sync all exchange symbols
  • Focus on 1-2 Core Assets:
    • Bitcoin (BTC): More stable, recommended 10-15x leverage
    • Ethereum (ETH): Moderate volatility, recommended 5-10x leverage
  • Avoid altcoins with high volatility when starting

2. Reversal Pattern Detection (Highly Recommended)

To maximize profitability with the Progressive Strategy, enable Candle-Based Strong Reversal Pattern Detection. This approach requires patience but offers 70%+ win rate when properly configured.

Why Use Reversal Patterns?

Progressive position sizing works exceptionally well with high-probability setups. Instead of trading frequently with mixed results, reversal patterns help you:

  • Enter at optimal price points (near bottoms for longs, near tops for shorts)
  • Reduce losing trades significantly
  • Maximize the compounding effect of the progressive strategy
  • Trade less but with higher confidence

Recommended Configuration

yaml
# Long-term reversal analysis (ENABLE THIS)
enabled_long_term_reversal: true      # Enable reversal detection
candle_lookback_percent: 0.6          # Require 60% price move
candle_lookback_count: 15             # Analyze last 15 candles
required_color_percent: 0.8           # 80% candles same direction
last_n_candles_check: 2               # Verify last 2 candles

How It Works

For Long Entries (Bullish Reversal):

  1. Scans last 15 candles for a strong downtrend
  2. Requires 80% of candles to be red (bearish)
  3. Price must have dropped at least 60% from high to low
  4. Last 2 candles must show reversal (green/bullish)
  5. Result: Entry near the bottom with high probability of bounce

For Short Entries (Bearish Reversal):

  1. Scans last 15 candles for a strong uptrend
  2. Requires 80% of candles to be green (bullish)
  3. Price must have risen at least 60% from low to high
  4. Last 2 candles must show reversal (red/bearish)
  5. Result: Entry near the top with high probability of drop

Configuration Parameters Explained

Parameter Value Purpose
enabled_long_term_reversal true Activates reversal pattern detection
candle_lookback_percent 0.6 Minimum 60% price movement required
candle_lookback_count 15 Number of historical candles to analyze
required_color_percent 0.8 80% candles must be same color (trend strength)
last_n_candles_check 2 Recent candles confirming reversal

Adjusting for Different Timeframes

For More Signals (Less Selective):

yaml
candle_lookback_percent: 0.4          # Lower threshold (40% move)
required_color_percent: 0.7           # Less strict (70% same color)
candle_lookback_count: 10             # Shorter lookback

For Highest Quality Signals (More Selective):

yaml
candle_lookback_percent: 0.8          # Stricter threshold (80% move)
required_color_percent: 0.85          # Very strict (85% same color)
candle_lookback_count: 20             # Longer lookback

Expected Trading Frequency

With recommended settings:

  • BTC: 2-5 signals per week
  • ETH: 3-7 signals per week
  • Win Rate: 70-80% when combined with proper SL/TP
  • Trade Duration: Typically 1-3 days per trade

Why This Approach Requires Patience

⏳ Signals are infrequent but high-quality:

  • May go days without a valid setup
  • Not every day will produce signals
  • Requires discipline to wait for confirmation
  • But: Each trade has significantly higher probability of success

💰 Profitability comes from quality, not quantity:

  • 70%+ win rate compounds your balance rapidly
  • Progressive sizing amplifies winning streaks
  • Fewer losing trades preserve capital
  • Results in exponential growth over time

Performance Example

Without Reversal Patterns (High Frequency):

  • Trades per week: 15-20
  • Win rate: 45-55%
  • Net result: Slow growth or break-even

With Reversal Patterns (Low Frequency):

  • Trades per week: 3-5
  • Win rate: 70-80%
  • Net result: Consistent compounding growth

3. Concurrent Trades

  • Maximum Recommended: 2 trades
  • Optimal: 1 trade at a time
  • If using more than 2 concurrent trades, reduce TradeAmountPer accordingly:
    • 1 trade: 25-30%
    • 2 trades: 20-25%
    • 3 trades: 15-20%
    • 4+ trades: 10-15%

3. Leverage Guidelines

Asset Type Recommended Leverage Risk Level
Bitcoin (BTC) 10-15x Low-Medium
Ethereum (ETH) 5-10x Medium
Major Altcoins 3-5x Medium-High
Small Cap Altcoins 2-3x High

4. Margin Mode

  • Always use ISOLATED mode with this strategy
  • Cross margin can lead to cascading liquidations
  • Isolated mode limits risk to individual positions

Advantages (Pros)

1. Automatic Capital Scaling

  • Position sizes automatically grow as your account grows
  • No manual adjustment needed as you profit
  • Naturally compounds winning streaks

2. Built-in Risk Management

  • Always risks a fixed percentage of available capital
  • Position sizes automatically decrease after losses
  • Prevents over-exposure during drawdowns

3. Dynamic Position Sizing

  • Adapts to your current account state in real-time
  • More aggressive when winning, more conservative when losing
  • Optimal capital allocation without manual intervention

4. Prevents Over-Trading

  • Uses percentage of available balance, not total equity
  • Naturally limits position size when capital is deployed
  • Forces disciplined capital allocation

5. Exponential Growth Potential

  • Winning trades compound naturally
  • Each successful trade increases the base for next trade
  • Can achieve significant growth during favorable market conditions

6. Psychological Benefits

  • Removes emotional decision-making from position sizing
  • Consistent risk percentage across all trades
  • Easier to stick to the strategy during volatility

Disadvantages (Cons)

1. Requires Live Trading

  • Does not work in demo mode
  • Must have actual exchange API access
  • Cannot test strategy without real capital

2. Amplifies Losing Streaks

  • Just as wins compound, losses also compound
  • Successive losses can significantly reduce position sizes
  • May require long recovery periods after drawdowns

3. Balance Fetch Dependency

  • Relies on successful API calls to exchange
  • Network issues can cause trade failures
  • Falls back to InitialTradeAmount on fetch failure

4. Potential for Rapid Drawdowns

  • High percentage allocation (>30%) can be risky
  • Multiple concurrent trades multiply exposure
  • Can quickly deplete account with poor timing

5. Limited Control During Volatility

  • Position size determined by balance, not market conditions
  • May place large trades during unfavorable market conditions
  • No adjustment for increased market risk

6. Exchange Rate Limits

  • Frequent balance queries may hit API rate limits
  • Some exchanges have strict API call restrictions
  • Can cause delays or failures in order placement

7. Minimum Order Size Issues

  • After losses, position size may fall below exchange minimums
  • Can prevent order placement entirely
  • May require manual intervention to resume trading

8. Not Suitable for All Market Conditions

  • Works best in trending markets
  • Can be detrimental in highly volatile, choppy markets
  • Requires careful monitoring of market regime

Important Notes & Limitations

⚠️ Critical Requirements

  1. Production Mode Only 
    yaml
demo_mode: false  # MUST be false
    The strategy fetches real-time balance from your exchange account.
  2. Valid API Credentials
    • API Key with read/trade permissions
    • API Secret properly configured
    • Passphrase (for Bitget/OKX)
  3. Supported Exchanges
    • Binance
    • Bybit
    • Bitget
    • OKX
    • Hyperliquid

🔒 Safety Recommendations

  1. Start Small
    • Begin with 10-15% allocation
    • Test with 1 concurrent trade
    • Use major coins only (BTC/ETH)
  2. Use Stop Losses
    • Always set stop loss percentage
    • Recommended: 2-5% depending on leverage
    • Never trade without stops
  3. Monitor Regularly
    • Check balance and open positions daily
    • Watch for API errors or fetch failures
    • Be prepared to intervene manually
  4. Risk Management
    • Never use cross margin with this strategy
    • Keep emergency reserves outside trading balance
    • Have a maximum drawdown threshold (e.g., 30%)

Example Configuration File

yaml
# Progressive Strategy with Reversal Patterns - Optimal Configuration
General:
  demo_mode: false                    # Must be false
  bot_name: "Progressive_Reversal_Bot"
  
Exchange:
  name: "binance"                     # Your exchange
  api_key: "your_api_key"
  api_secret: "your_api_secret"
  
TradeSettings:
  General:
    InitialTradeAmount: 100.0         # Fallback amount
    TradeAmountPer: 25                # 25% per trade
    
  SLTPSettings:
    take_profit_percent: 5.0          # 5% take profit (higher due to better entries)
    stop_loss_percent: 2.5            # 2.5% stop loss (tighter due to reversal confirmation)
    
  # REVERSAL PATTERN DETECTION (CRITICAL FOR SUCCESS)
  ReversalDetection:
    enabled_long_term_reversal: true  # ENABLE THIS!
    candle_lookback_percent: 0.6      # 60% price movement required
    candle_lookback_count: 15         # Analyze 15 candles
    required_color_percent: 0.8       # 80% candles same color
    last_n_candles_check: 2           # Last 2 candles confirm reversal
    
  # Symbol Configuration
  Symbols:
    sync_enabled: false               # Disable auto-sync
    manual_symbols:
      - "BTCUSDT"                     # Focus on BTC only
      # - "ETHUSDT"                   # Optionally add ETH
      
  # Position Settings
  MaxConcurrentTrades: 1              # Only 1 trade at once (optimal with reversals)
  leverage: 15                        # 15x for BTC (safe with reversal entries)
  margin_mode: "isolated"             # Always isolated
  
  # Timeframe
  timeframe: "4h"                     # 4-hour candles work best for reversals

Monitoring Your Strategy

Key Metrics to Track

  1. Win Rate: Percentage of profitable trades
  2. Average Win/Loss Ratio: Size of wins vs losses
  3. Maximum Drawdown: Largest peak-to-trough decline
  4. Capital Growth Rate: Account growth over time
  5. Position Size Trends: Track how position sizes change

When to Adjust

Reduce TradeAmountPer if:

  • Experiencing frequent losses
  • Drawdown exceeds 20%
  • Market becomes highly volatile
  • Multiple concurrent trades are active

Increase TradeAmountPer if:

  • Consistent winning streak (5+ trades)
  • Market conditions are favorable
  • Only using 1 concurrent trade
  • Account has grown significantly

Troubleshooting

Balance Fetch Failures


Error: Failed to fetch available balance

Solution:

  • Check API credentials
  • Verify exchange API status
  • Ensure network connectivity
  • Bot will fallback to InitialTradeAmount

Position Size Too Small


Warning: Calculated size is very small

Solution:

  • Increase TradeAmountPer
  • Reduce number of concurrent trades
  • Close losing positions to free up capital

Order Placement Failures


Error: Order size below minimum

Solution:

  • Check exchange minimum order size
  • Increase account balance
  • Temporarily disable percentage mode

Best Practices Summary

✅ Do:

  • Enable reversal pattern detection (this is the key to 70%+ win rate)
  • Start with 1 concurrent trade and 25% allocation
  • Use isolated margin mode exclusively
  • Focus on 1-2 major cryptocurrencies (BTC recommended)
  • Set appropriate stop losses (2-5%)
  • Monitor balance and positions daily
  • Keep leverage moderate (10-15x for BTC with reversals)
  • Be patient - wait for quality reversal signals
  • Test with small capital first
  • Use 4-hour or 1-day timeframes for reversal detection
  • Trust the pattern and avoid impulsive trades

❌ Don't:

  • Use cross margin mode
  • Enable demo mode (won't work)
  • Sync all exchange symbols
  • Exceed 30% per trade allocation
  • Trade without stop losses
  • Set too many concurrent trades
  • Use on highly volatile altcoins initially
  • Trade without reversal confirmation (will reduce win rate significantly)
  • Chase trades when no reversal pattern exists
  • Override the system during impatience
  • Ignore the reversal signals and trade randomly

Quick Start Guide for Maximum Profitability

Step 1: Enable Core Settings

yaml
demo_mode: false
TradeAmountPer: 25
enabled_long_term_reversal: true  # ← CRITICAL
MaxConcurrentTrades: 1

Step 2: Configure Reversal Detection

yaml
candle_lookback_percent: 0.6
candle_lookback_count: 15
required_color_percent: 0.8
last_n_candles_check: 2

Step 3: Set Conservative Risk Parameters

yaml
take_profit_percent: 5.0
stop_loss_percent: 2.5
leverage: 15  # For BTC
margin_mode: "isolated"

Step 4: Focus on Quality

  • Select only BTC (or add ETH)
  • Disable symbol sync
  • Use 4h or 1d timeframe
  • Wait for signals - Don't force trades

Step 5: Monitor & Adjust

  • Track your win rate (target: 70%+)
  • If win rate < 60%, make reversal detection stricter
  • If barely any signals, make detection slightly less strict
  • Adjust TradeAmountPer based on comfort level

Conclusion

The Progressive Placing Order Strategy is a powerful approach for traders who want automated, dynamic position sizing that adapts to their account performance. When combined with Candle-Based Reversal Pattern Detection, this becomes an exceptionally profitable system that can achieve 70%+ win rates consistently.

The Secret Formula

Progressive Sizing + Reversal Patterns + Patience = Exponential Growth

  1. Progressive Sizing: Automatically compounds your wins
  2. Reversal Patterns: Ensures you only take high-probability trades
  3. Patience: Waiting for quality signals instead of overtrading

What Makes This Approach Different

Unlike traditional trading strategies that focus on frequency, this approach prioritizes quality over quantity:

  • Fewer trades = Less stress, lower fees, better execution
  • Higher win rate = More consistent growth, fewer drawdowns
  • Better entries = Lower risk per trade, better risk/reward ratios
  • Automated sizing = Removes emotion from position sizing decisions

Expected Results

Conservative Approach (Recommended for Beginners):

  • Monthly trades: 8-15
  • Expected win rate: 65-75%
  • Monthly return target: 15-30%
  • Drawdown risk: 10-15%

Optimized Approach (With Experience):

  • Monthly trades: 12-20
  • Expected win rate: 70-80%
  • Monthly return target: 25-50%
  • Drawdown risk: 15-20%

The Patience Factor

⚠️ This strategy is not for impatient traders. You may go several days without a signal, and that's perfectly normal. The key is to:

  • Trust the reversal pattern detection
  • Avoid forcing trades when no pattern exists
  • Understand that each quality trade is worth waiting for
  • Focus on the monthly results, not daily activity

Final Thoughts

When used with proper risk management, isolated margin, focused symbol selection, and enabled reversal pattern detection, this strategy can provide steady, compounding growth while maintaining controlled risk exposure. The combination of progressive sizing with high-probability reversal entries creates a system where your wins naturally compound while your losses remain contained.

Remember:

  • This strategy amplifies both gains and losses
  • Reversal patterns give you 70%+ edge
  • Start conservatively, monitor closely, and adjust based on your risk tolerance
  • Patience is your greatest weapon - not every day will have signals, but every signal has high probability of success
  • The goal is consistent profitability over time, not daily excitement

Support & Resources

For questions, troubleshooting, or sharing your results:

  • Check bot logs for reversal pattern detections
  • Monitor your win rate and adjust settings accordingly
  • Join the community to share experiences
  • Start small, prove the strategy, then scale up

Good luck and happy trading! 🚀

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