Posted: 11 July, 2025
MagicTradeBot is not just a fast and intelligent automation platform that scans hundreds or even thousands of cryptocurrencies in real time. It also empowers traders with advanced trading strategies that go beyond basic automation. By combining real-time scanning, customizable long/short conditions, and smart risk management tools (like stop-loss and take-profit), MagicTradeBot becomes a complete solution for traders looking to maximize profitability with proven methodologies.
Among its most powerful features is the Strategy Builder Engine, which supports a variety of popular and mathematically grounded trading strategies—many adapted from renowned financial and gambling systems. These strategies can be used to control position sizing based on trade outcomes, helping you manage risk dynamically while compounding gains or reducing losses.
🎯 Supported Strategy Reference
- 0: No Strategy (Flat) – The order size remains constant regardless of win/loss outcome.
- 1: Martingale – Doubles position size after each loss. Resets after a win.
Pros: Can recover losses quickly after a win.
Cons: Risk of exponential loss during long losing streaks. Requires large capital buffer. - 2: Reverse Martingale – Increases position size after a win. Resets after a loss.
Pros: Maximizes gains during winning streaks while minimizing losses.
Cons: A loss immediately after a win with a larger size may wipe out the profit. - 3: Fibonacci – Uses Fibonacci sequence for position sizing after losses: 1, 1, 2, 3, 5, 8, etc.
Pros: Slower and more controlled progression than Martingale.
Cons: Still grows during losses; risk increases if losing streak extends. - 4: Fibonacci Reverse – Follows Fibonacci growth on wins, resets on loss.
Pros: Great for compounding during strong performance periods.
Cons: Resetting after a loss may limit recovery in choppy markets. - 5: 3-2-6-3 – Progression-based sizing: 3 units → 2 → 6 → 3 → reset.
Pros: Balanced growth with partial resets to manage risk.
Cons: Requires consistent performance to reach full potential. - 6: 3-2-6-3 Reverse – Follows 3-2-6-3 progression when winning; resets after loss.
Pros: Safer version of aggressive progression when market aligns.
Cons: May stagnate in inconsistent markets. - 7: D'Alembert – Increases position by 1 unit after a loss, decreases after a win.
Pros: Gentle progression, easier on capital.
Cons: Slower recovery from large losses. - 8: D'Alembert Reverse – Increases size after a win, decreases after a loss.
Pros: Safer for consistent strategies with high win rate.
Cons: Gains can be lost quickly if wins aren't chained.
💡 Pro Tips & Strategy Suggestions
If your strategy’s historical success rate is above 70%, prefer using reverse-style strategies (e.g., Reverse Martingale, Fibonacci Reverse, 3-2-6-3 Reverse, D'Alembert Reverse). These increase position size during winning streaks and scale down during losses, helping you maximize returns while reducing drawdowns.
To validate your strategy, use the Strategy Builder Tool with historical data to ensure your logic consistently performs. This helps you avoid applying advanced strategies on low-probability signals, which may lead to overexposure or rapid loss escalation.
For risk management, set a strategyMaxCount value to limit how far a strategy can progress (e.g., set to 5 for Martingale to avoid excessive compounding). This acts as a safety brake and ensures your account doesn’t over-leverage in volatile conditions.
🔓 How to Unlock and Use Advanced Strategies
These strategies can be enabled via your bot’s config.yml file under the following section:
# TRADING STRATEGY strategy: 4 # Selected strategy ID strategyMaxCount: 55 # Max strategy progression steps (0 = unlimited) # STRATEGY REFERENCE: # 0: No strategy # 1: Martingale 2: Reverse Martingale # 3: Fibonacci 4: Fibonacci Reverse # 5: 3-2-6-3 6: 3-2-6-3 Reverse # 7: D'Alembert 8: D'Alembert Reverse
Once configured, MagicTradeBot will automatically calculate the next order size based on your selected strategy and the outcome of the previous trade—completely hands-free.
📢 Final Notes & Risk Disclaimer
Disclaimer: MagicTradeBot enables real-time scanning and automated trading across hundreds or thousands of coins based on your custom logic. It is a powerful assistant that can help you increase profitability, but it does not guarantee 100% success.
You should always backtest and validate your strategies with tools like:
Before going live, ensure your system achieves at least 70% historical probability. Combining that with an intelligent compounding strategy can significantly enhance long-term gains while keeping risk in check.