Trading Strategies

This guide explains the available trading strategies, their characteristics, and how to configure them effectively.

Strategy Overview

Each strategy has different strengths and is optimized for specific market conditions:

Strategy	Type	Timeframe	Risk Level	Best Markets
NFI	Advanced Multi-Indicator	1m	Medium-High	Trending & Volatile
ReinforcedQuickie	Momentum Scalping	5m	Medium	Active Trading
BbandRsi	Mean Reversion	15m	Medium	Range-Bound
SMAOffset	Trend Following	1h	Low-Medium	Clear Trends

Strategy Descriptions

NFI (NostalgiaForInfinity)

Overview: Advanced strategy using sophisticated technical analysis with dynamic risk management.

Key Features:

• Multiple timeframe analysis
• Advanced entry/exit logic
• Built-in protection mechanisms
• Position adjustment capabilities
• Dynamic risk management

Best For:

• Experienced traders who understand complex strategies
• Users comfortable with strategy-managed exits
• Markets with good volatility and liquidity

Risk Management Approach:

{
  "stoploss": -0.99,                 // Let strategy manage exits
  "position_adjustment_enable": true, // Allow position averaging
  "use_custom_stoploss": true        // Use strategy's exit logic
}

Configuration: Uses NFI-config-template.json

ReinforcedQuickie

Overview: Short-term momentum strategy designed for quick scalping trades.

Key Features:

• Fast 5-minute timeframe
• Quick entry/exit signals
• Momentum-based indicators
• Traditional risk management

Best For:

• Active trading approach
• Users who prefer frequent trading
• Markets with good intraday movement

Risk Management Approach:

{
  "stoploss": -0.1,              // 10% stop-loss
  "minimal_roi": {               // Take profit levels
    "0": 0.05,                  // 5% immediate
    "30": 0.025,                // 2.5% after 30 min
    "60": 0.01,                 // 1% after 1 hour
    "120": 0                    // Break-even after 2 hours
  }
}

Configuration: Uses ReinforcedQuickie-config-template.json

BbandRsi

Overview: Mean reversion strategy using Bollinger Bands and RSI indicators.

Key Features:

• Bollinger Bands for volatility measurement
• RSI for overbought/oversold conditions
• Mean reversion approach
• Clear entry/exit rules

Best For:

• Range-bound markets
• Users who prefer lower-frequency trading
• Conservative trading approach

Risk Management Approach:

{
  "stoploss": -0.05,             // 5% stop-loss
  "minimal_roi": {               // Conservative profit targets
    "0": 0.02,                  // 2% immediate
    "60": 0.01,                 // 1% after 1 hour
    "120": 0.005,               // 0.5% after 2 hours
    "180": 0                    // Break-even after 3 hours
  }
}

Configuration: Uses BbandRsi-config-template.json

SMAOffset

Overview: Simple trend-following strategy using moving averages with offset.

Key Features:

• Simple Moving Average (SMA) based
• Offset mechanism for entry timing
• Easy to understand logic
• Beginner-friendly approach

Best For:

• Beginners learning strategy mechanics
• Clear trending markets
• Users who want simple, understandable logic

Risk Management Approach:

{
  "stoploss": -0.08,             // 8% stop-loss
  "minimal_roi": {               // Gradual profit taking
    "0": 0.04,                  // 4% immediate
    "60": 0.02,                 // 2% after 1 hour
    "120": 0.01,                // 1% after 2 hours
    "240": 0                    // Break-even after 4 hours
  }
}

Configuration: Uses SMAOffset-config-template.json

Strategy Configuration

Configuration Templates

Each strategy has an optimized configuration template in the config/ directory:

config/
├── NFI-config-template.json                    # NFI specific settings
├── ReinforcedQuickie-config-template.json     # Quickie specific settings  
├── BbandRsi-config-template.json              # BbandRsi specific settings
├── SMAOffset-config-template.json             # SMAOffset specific settings
└── config-template.json                       # Default fallback template

Key Configuration Sections

Trading Parameters

{
  "max_open_trades": 5,          // Maximum simultaneous trades
  "stake_currency": "USDT",      // Base currency for trading
  "stake_amount": "unlimited",   // Amount per trade
  "tradable_balance_ratio": 0.99 // Percentage of balance to use
}

Risk Management

{
  "stoploss": -0.1,              // Stop-loss percentage
  "trailing_stop": false,        // Use trailing stops
  "minimal_roi": {...},          // Take profit levels
  "position_adjustment_enable": true // Allow position adjustments
}

Trading Pairs

{
  "pair_whitelist": [            // Allowed trading pairs
    "BTC/USDT",
    "ETH/USDT", 
    "BNB/USDT"
  ],
  "pair_blacklist": [            // Prohibited pairs
    "BNB/BTC"
  ]
}

Choosing the Right Strategy

For Beginners

Recommended: SMAOffset or BbandRsi

• Why: Simple logic, traditional risk management
• Start with: Small position sizes, dry-run mode
• Focus on: Understanding how strategies work

For Intermediate Users

Recommended: ReinforcedQuickie

• Why: More active trading, good learning opportunity
• Start with: Moderate position sizes, monitor closely
• Focus on: Performance analysis and optimization

For Advanced Users

Recommended: NFI with strategy-driven risk management

• Why: Sophisticated approach, potentially higher returns
• Start with: Understanding strategy internals
• Focus on: Trust the strategy’s built-in mechanisms

Strategy Performance Comparison

Backtesting Results (Example)

Note: Past performance doesn’t guarantee future results

Strategy	6-Month Return	Max Drawdown	Win Rate	Trades/Day
NFI	15.2%	-8.1%	52%	3.2
ReinforcedQuickie	12.8%	-12.3%	48%	8.7
BbandRsi	8.4%	-5.2%	58%	1.8
SMAOffset	6.1%	-4.8%	55%	1.2

Market Condition Performance

Trending Markets (Strong directional movement)

1. NFI - Excellent trend following capabilities
2. SMAOffset - Good basic trend following
3. ReinforcedQuickie - Benefits from momentum
4. BbandRsi - May struggle with continuous trends

Range-Bound Markets (Sideways movement)

1. BbandRsi - Designed for mean reversion
2. ReinforcedQuickie - Can capture short-term swings
3. NFI - Adaptive to various conditions
4. SMAOffset - May generate false signals

Volatile Markets (High price swings)

1. NFI - Advanced volatility handling
2. ReinforcedQuickie - Quick exits limit exposure
3. BbandRsi - Good volatility indicators
4. SMAOffset - May be whipsawed

Customizing Strategies

Adjusting Risk Parameters

Conservative Approach

{
  "max_open_trades": 2,          // Fewer simultaneous trades
  "stake_amount": 20,            // Fixed small amount per trade
  "stoploss": -0.05              // Tighter stop-loss
}

Aggressive Approach

{
  "max_open_trades": 8,          // More simultaneous trades
  "stake_amount": "unlimited",   // Use available balance
  "stoploss": -0.15              // Wider stop-loss
}

Pair Selection Strategies

Conservative Pairs (Major cryptocurrencies)

{
  "pair_whitelist": [
    "BTC/USDT", "ETH/USDT", "BNB/USDT", 
    "ADA/USDT", "DOT/USDT"
  ]
}

Aggressive Pairs (Including altcoins)

{
  "pair_whitelist": [
    "BTC/USDT", "ETH/USDT", "BNB/USDT",
    "LINK/USDT", "UNI/USDT", "AAVE/USDT",
    "SUSHI/USDT", "COMP/USDT"
  ]
}

Strategy Maintenance

Regular Reviews

Weekly Strategy Assessment

1. Performance comparison - Which strategies are outperforming?
2. Market condition analysis - Are current conditions suitable?
3. Risk evaluation - Are drawdowns within acceptable limits?
4. Adjustment considerations - Should parameters be modified?

Monthly Strategy Rotation

1. Pause underperforming strategies - Stop strategies consistently losing
2. Increase allocation to successful strategies
3. Test new configurations - Experiment with parameter adjustments
4. Market cycle considerations - Adjust for changing market conditions

Strategy Updates

Updating Strategy Code

# Update all strategies from repositories
./scripts/update-strategies.sh

# Restart bots with updated strategies
docker stop freqtrade-YourStrategy
./docker-launch.sh YourStrategy

Configuration Updates

1. Edit template files in config/ directory
2. Test in dry-run mode before going live
3. Monitor performance after changes
4. Document modifications for future reference

Troubleshooting Strategy Issues

Strategy Not Trading

Possible Causes:

• Market conditions don’t meet entry criteria
• Insufficient balance for new trades
• API connection issues
• Configuration errors

Solutions:

1. Check strategy logs for entry signal details
2. Verify available balance and trading pairs
3. Test API connection and permissions
4. Review configuration file syntax

Poor Strategy Performance

Analysis Steps:

1. Compare current performance with backtesting results
2. Analyze market conditions vs expected conditions
3. Check for configuration changes or errors
4. Review recent market events that might affect performance

Strategy Conflicts (Multiple Strategies)

Issues:

• Competing for same trading pairs
• Insufficient balance distribution
• API rate limiting

Solutions:

1. Assign different pairs to different strategies
2. Adjust stake amounts to prevent balance conflicts
3. Use binance-proxy for rate limit management
4. Stagger strategy processing intervals

Best Practices

Strategy Selection

1. Start with one strategy - Master one before adding others
2. Match strategy to market - Use appropriate strategy for conditions
3. Understand the logic - Know how your chosen strategy works
4. Test thoroughly - Use dry-run mode extensively

Risk Management

1. Diversify strategies - Don’t rely on single approach
2. Position sizing - Never risk more than you can afford to lose
3. Regular monitoring - Check performance and adjust as needed
4. Emergency planning - Know how to quickly stop trading

Performance Optimization

1. Regular backtesting - Test strategies against recent data
2. Parameter tuning - Carefully adjust settings based on performance
3. Market adaptation - Switch strategies based on market conditions
4. Continuous learning - Stay updated with strategy developments

Next Steps

Master strategy management:

• Learn advanced monitoring techniques
• Understand project structure
• Troubleshoot common issues