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MACD Strategy

What is MACD?

Moving average convergence and divergence is one of the most popular and widely used indicators in secondary market trading. It is mainly based on the exponential moving average to determine the moving trend of the underlying asset.
Components of MACD:
  1. 1.
    MACD Line: It is the 12-day exponential moving average (EMA) minus the 26-day exponential moving average. Compared with the simple moving average, the exponential moving average places more emphasis on recent prices and could better reflect price fluctuations in the short term. By utilizing 12-day EMA minus 26-day EMA, the MACD line could capture the short-term capital flow in a more precise way. If the MACD line is greater than zero, the trend of buying in the short term is relatively stronger.
  2. 2.
    Signal Line: It is the 9-day exponential moving average of the MACD line. When the MACD line crosses the signal line, it sometimes indicates that the market trend may start to reverse, especially when it occurs in an area far from the zero axis.
  3. 3.
    Histograms: It vividly captures the difference between the MACD line and the Signal line.
Common MACD indicators:
  1. 1.
    The histogram goes from negative to positive: Long underlying asset
  2. 2.
    The histogram goes from positive to negative: Short underlying asset
  3. 3.
    The MACD line crosses the signal line downwardly: Longs start to close their positions
  4. 4.
    The signal line crosses the MACD line upwardly: Shorts start to close their positions

Introduction of Bonfida’s MACD Strategy Bots

Go to Bonfida's Bot page and select Find a strategy to follow
On the explore page there are four daily MACD strategy bots of BTC, ETH, SRM and FIDA
Initial deposits were USDC when those pools were created
When the histogram goes from negative to positive, the pool will use all its assets to buy the base currency (BTC/ETH/SRM/FIDA)
When the histogram goes from positive to negative, the pool will sell all of the base currency (BTC/ETH/SRM/FIDA)
The order size is 100% of what is available in the pool
This functions as an immediate-or-cancel order, meaning under the situation of thin liquidity, the order may not get filled completely. The unfilled part would get canceled
The details of the FIDA pool look as follows:
  1. 1.
    The automated trading bot for this pool was launched in early March
  2. 2.
    Inception performance is calculated by (current value of LP token — initial value of LP token)/ initial value of LP token
  3. 3.
    The MACD FIDA bot automates trades based on the direction of the histogram. You can directly deposit LP tokens into the pool here https://bots.bonfida.org/#/pool/3u6zrpaW9uRfpVqZYwCAiQLvQpiY1JmCCdvZV8ydro4r
  4. 4.
    For all on-chain transactions done by the pool refer here https://explorer.solana.com/address/G6PRQ1Cu4sNH9AjJq89F47XSYSsAt1toW8BuTgeoCpPr

Super Trend Strategy

What is Super Trend?

Super Trend is a simple indicator that has been widely used for intraday trading. It consists of two parameters: period and multiplier. The default setup of the two parameters is 10 for the average true range (ATR) or trading period, and 3 for its multiplier.
The average true range is the average of true ranges during a specific time period. The true range indicator is calculated by taking the greatest from the following:
  1. 1.
    Current high minus the current low or
  2. 2.
    The absolute value of the current high less the previous close or
  3. 3.
    The absolute value of the current low less the previous close
The ATR as a moving average of true ranges captures the price volatility over that certain period. Usually, an underlying asset undergoing a high level of volatility has a higher ATR, and a lower volatility asset possesses a lower ATR.
Intraday traders tend to use the super trend indicator as a buy or sell signal in a trending market. A buy signal is generated when the super trend closes above the closing price, and a sell signal is triggered when it closes below the closing price. However, the Super Trend indicator is more suitable for the trend-moving market, and it could fail in a sideways-moving market.

Introduction of Bonfida’s Super Trend Strategy Bots

Go to Bonfida's Bot page and select Find a strategy to follow
On the explore page there are four Super Trend bots of BTC, ETH, SRM and FIDA
Initial deposits were USDC, when those pools were created
When the super trend indicator tips above the closing price, the pool will use all its assets to buy the base currency (BTC/ETH/SRM/FIDA)
When the super trend indicator slips below the closing price, the pool will sell all of its base currency (BTC/ETH/SRM/FIDA)
The order size is 100% of what is available in the pool
The details of the FIDA pool look as follows:
  1. 1.
    The automated trading bot was launched in early March
  2. 2.
    Inception performance is calculated by (current value of LP token — initial value of LP token)/ initial value of LP token
  3. 3.
    You can directly deposit tokens into the pool here (https://bots.bonfida.org/#/pool/8uSTbreQ9ywGw3AYA7yP74KBsa78Y3wEEiDfnBKDFss)
  4. 4.
    For all on-chain transactions of the pool refer here https://explorer.solana.com/address/228wPzdwJggUwTXD2c7zTNmLnXra4PzVQ2gXunmVFKJL