Advanced Features & Strategies

ABFutureBot is equipped with powerful features designed to give you an edge in the market, from intelligent risk management to comprehensive analytical tools.

Intelligent Risk Management

Our bot-side risk management engine goes beyond basic stop-losses, offering dynamic, volatility-adjusted stops and superior trailing stop-loss logic. Your capital is protected by a system that adapts to real-time market conditions.

Learn More about Risk Management

Powerful Analytics & Tools

Make informed decisions with our integrated Backtester and Tax Center. Validate your strategies against historical data and simplify your financial reporting with ease.

Explore our Advanced Tools

Trading Strategies Explained

This document provides a detailed guide to the trading strategies employed by ABFutureBot. Understanding this logic is key to configuring your bots effectively and aligning them with your personal risk tolerance and market outlook.

Core Principles

All strategies operate on two core principles:

1. The F-T-V Framework: No trade is ever executed based on a single indicator. Every signal is vetted through a Filter -> Trigger -> Volume framework.
   • Filter: The bot first checks the broader market trend on a higher timeframe (e.g., the Daily chart) to establish a directional bias.
   • Trigger: A specific indicator or set of indicators on the bot's configured interval (e.g., the 4-hour chart) generates the initial buy or sell signal.
   • Volume: The signal is only acted upon if confirmed by a significant spike in trading volume, indicating genuine market conviction.
2. Asset-Specific Parameters: The bot recognizes that different types of crypto assets behave differently. It automatically adjusts its internal parameters based on whether it's trading a Large-Cap (like BTC), Mid-Cap (like LINK), Small-Cap, or Memecoin. This ensures the strategy is optimized for the asset's typical volatility and trend behavior.

Strategy 1: MACD Crossover (Trend-Following)

This is a classic momentum strategy that aims to capture the majority of a market trend.

• Bullish Signal (Buy): Occurs when the MACD line crosses above the Signal line, suggesting upward momentum is building.
• Bearish Signal (Sell): Occurs when the MACD line crosses below the Signal line, suggesting downward momentum is building.

MACD Risk Rankings

• Rank 4: Pure Crossover (Most Aggressive): Acts on every MACD crossover signal that is confirmed by a volume spike. Best for clearly trending markets but can be prone to false signals in choppy conditions.
• Rank 3: Trend Confirmation: A BUY signal is only valid if the asset is also in a broader daily uptrend. This avoids buying into short-term rallies within a larger bear market.
• Rank 2: Zero-Line Proximity: Only acts on crossovers that happen very close to the MACD "Zero Line". This is best for catching trend reversals at their earliest, most powerful point.
• Rank 1: Full Confirmation (Most Conservative): A BUY signal requires a perfect confluence: a bullish crossover, confirmation of a daily uptrend, proximity to the zero line, AND a significant volume spike.

Strategy 2: RSI Mean Reversion (Counter-Trend)

This strategy operates on the principle that assets, after an extreme price move, tend to revert to their average price. It aims to "buy low" and "sell high".

• Bullish Signal (Buy): Occurs when the Relative Strength Index (RSI) drops into the "oversold" zone (typically below 30).
• Bearish Signal (Sell): Occurs when the RSI rises into the "overbought" zone (typically above 70).

RSI Risk Rankings

• Rank 4: Pure Oversold (Most Aggressive): Buys as soon as the RSI value drops below the oversold threshold. High risk of "catching a falling knife" if the price continues to drop.
• Rank 3: Momentum Confirmation: Buys only when the RSI, after being in the oversold zone, crosses back up through the oversold threshold, confirming momentum has likely reversed.
• Rank 2: Trend Confirmation: An "oversold" signal is only valid if the asset is also in a larger daily uptrend. This is a powerful "buy the dip" strategy.
• Rank 1: Full Confirmation (Most Conservative): Combines both confirmations: a daily uptrend AND RSI momentum confirmation.

Strategy 3: Bollinger Bands (Volatility-Based Mean Reversion)

Similar to RSI, this strategy identifies overextended prices, but it uses volatility instead of momentum. The bands widen in volatile markets and contract in calm ones.

• Bullish Signal (Buy): Occurs when the price touches or drops below the lower Bollinger Band.
• Bearish Signal (Sell): Occurs when the price touches or rises above the upper Bollinger Band.

Bollinger Bands Risk Rankings

• Rank 4 & 3: Aggressive Band Touch: Buys as soon as the price touches the lower band. High risk in a strong trend where the price can "walk the band" downwards.
• Rank 2 & 1: Conservative Trend Confirmation: A "band touch" BUY signal is only valid if the asset is also in a larger daily uptrend.

Strategy 4: BB + RSI Confluence (High-Conviction Mean Reversion)

This is the most conservative strategy, requiring two different indicators to agree before generating a signal. This confluence provides a much higher-probability entry.

• Bullish Signal (Buy): Occurs only when the price touches the lower Bollinger Band AND the RSI is oversold (<30).
• Bearish Signal (Sell): Occurs only when the price touches the upper Bollinger Band AND the RSI is overbought (>70).

Confluence Risk Ranking

• Rank 4 & 3: Trades any valid confluence signal.
• Rank 2 & 1: A confluence BUY signal is only valid if the asset is also in a larger daily uptrend.

Universal Risk Management

Regardless of the strategy chosen, every trade is protected by a universal risk management protocol based on the Average True Range (ATR).

• Dynamic Stop-Loss: Stop-losses are not fixed percentages. They are set as a multiple of the ATR, meaning they are automatically wider in volatile markets and tighter in calm markets.
• Trailing Stop-Loss: Once a trade is in profit, the bot can automatically "trail" the stop-loss upwards, locking in gains while giving the trend room to run.

This adaptive risk management is a core feature designed to preserve capital and maximize profits from winning trades.