Bit Rocket Grid Bot Screener 1.0

16 déc. 2023

DESCRIPTION
A grid bot is an automated trading bot that is designed to execute buy and sell orders based on a pre-defined grid of prices. Grid bots operate within a specified price range, placing trades at set intervals above and below the current market price. The key idea behind a grid bot is to take advantage of price fluctuations and market volatility, not looking for trends or breakouts.

The optimal trading pair for a grid bot is one that exhibits frequent oscillations within a predictable range while demonstrating a slight upward trend. In simpler terms, it's a pair that consistently fluctuates within the same range.

The Grid Bot Screener serves as a valuable tool for identifying the most suitable trading pairs, by showing the indicators that matter the most for sideways Grid Bot trading. Most screeners look for trends, breakouts and use indicators that are used for assisting the trader with when to buy and sell. This indicator assists in the selection of pairs that are likely to yield the best results for high volatility sideways trading.



USAGE
This screener looks at volatility, sideways action, ADX, and other indicators that are most helpful when determining the amount and potential volatility, sideways action, and transactions for up to twenty pairs at a time.

Each indicator has a threshold that the user can set themselves, this way the user is in control when comparing or hunting for the optimal pairs.

User selects up to twenty pairs, sets thresholds if different than defaults, then sets length (how far back to look). Once this is set the user can quickly look and compare the results.

KEY INDICATORS
VOLATILITY ACTION - Percentage of Price Action Volatility; Temporal Volatility Trends; Elevated price action signifies accelerated price fluctuations, disregarding directional cues.

SIDEWAYS ACTION - The higher the value, the greater the horizontal movement; a robust trend, which is not our objective, provides no directional insight.
Values exceeding 45 indicate pronounced sideways activity, while lower values approaching zero signify a vigorous trend.
These values do not assist in determining the trend direction.
Higher values imply a more sideways orientation, whereas lower values indicate a more pronounced trend.

ADX - Does not indicate trend direction; instead measures trend strength.
An indicator for price range
Lower values signal a weak trend
Higher values denote a robust trend
Strategy: Look for values of 25 or lower which indicate a ranging or neutral trend.

TXNS SCORE – Transaction Activity.
TXNS indicator represents grid performance and serves as a direct measure of trading activity. TXNS accumulates the number of buy and sell actions, reflecting the user-defined grid percentage.

Elevated transaction numbers signify increased activity, leading to enhanced bot profitability.

NOTE: For an accurate representation of the actual number of transactions, use the Bit Rocket Transactions indicator on the 30min time frame.


CONFIRMATION INDICATORS
While the key indicators are generally reliable on their own, it's also valuable to assess how well the asset is performing and its historical trajectory. The confirmation indicators provide valuable insights into an asset's performance and direction, reinforcing the assessments made through the key indicators, again these indicators on their own are not enough they must be used in conjunction with the key indicators.

VOL - Trading Activity: For assets engaged in sideways trading, sufficient volume is necessary, but it doesn't need to be as high as you might expect.

VOL(USD) - USD-Based Activity: A high USD volume signifies strong market interest.

ROC - Rate of Change Percentage: This metric calculates the percentage change in price over a specified date range. Shows trend direction using price percentage.

• Avoid extremely high or extremely low values.
o Excessively high values may indicate overbought conditions with potential for a price correction.
o Very low values could imply waning interest and diminished asset value.
o Conversely, high values might indicate asset strength, while low values could suggest that the asset has reached a bottom and is unlikely to decrease further.

BOLLINGER BAND WIDTH PERCENT - Average MACD Percentage Width, percent is used with Bollinger bands to allow for comparison with other assets.

RSI - Buying and Selling Pressure Strength: When assessing RSI, look for a balance between buying and selling pressure while still maintaining high volatility and sideways strength. Key RSI levels to consider:

• 40-60: Neutral range, indicating equilibrium and stability.
• Above 70: Approaching overbought conditions.
• Below 30: Nearing oversold conditions.
These confirmation indicators provide valuable insights into an asset's performance and direction, reinforcing the assessments made through the key indicators.

ADDITIONAL INDICATORS
DAYS ON EXCHANGE – This metric reveals how long the crypto pair has been listed on the exchange. It serves multiple purposes, such as assessing the data's historical depth and indicating whether the crypto might be relatively new. Keep in mind that while the asset could exist for a while, it might not have been available on the exchange for an extended period.

PRICE – This merely states the current price, making it suitable for those focusing on price action, it is provided for informational value only.

SAFE RANGE – This percentage indicates the price movement range from the highest to the lowest within a specified data range. Use this to determine the upper and lower levels for setting up your grid range.