Detailed explanation of the specifications for building 3EX CryptoGPT strategies: creating your own quantitative trading

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In the modern financial market, quantitative trading has become a mainstream investment method. By algorithmizing trading strategies, investors can capture market opportunities more accurately and efficiently, and 3EX CryptoGPT is a platform that provides users with such a powerful tool. This article will explain in detail how to build a quantitative trading strategy that meets your needs through 3EX CryptoGPT, and introduce some key parameter settings, opening and closing conditions, as well as risk management and strategy summary.

First of all, all strategies can be described on 3EX's CryptoGPT and the difficulty is very low, and it is easy to use.

1. Basic elements of strategy construction

When building a quantitative trading strategy, you first need to clarify the basic elements of trading, including indicator selection, parameter setting, and the definition of opening and closing conditions. The setting of each element will directly affect the performance of the strategy, so it is necessary to carefully consider it during the design process.

1. Indicator selection: On the 3EX CryptoGPT platform, users can choose a variety of technical indicators for strategy construction. MACD (moving average convergence/divergence indicator) and SMA (simple moving average) are commonly used technical indicators that can effectively capture changes in market trends.

2. Parameter setting: The setting of parameters has a crucial impact on the sensitivity and stability of the strategy. Reasonable parameter settings can perform well in different market environments, while overly sensitive parameters may cause the strategy to perform poorly in market fluctuations.

3. Opening and closing conditions: These conditions determine when to enter and exit the market. A good strategy should be able to open positions at the right time and close positions when the predetermined target is reached or risks occur to lock in profits or reduce losses.

4. Risk management: Effective risk management is the core of quantitative trading strategies. It can help users maintain stable returns in market fluctuations and prevent huge losses caused by sudden market events.

Second, strategy design combining MACD and SMA

This section will introduce in detail a quantitative trading strategy that combines MACD and SMA. This strategy automatically opens and closes positions at the right time by monitoring changes in market trends.

1. Parameter settings

First, we need to set the parameters for the technical indicators used in the strategy. In this strategy, MACD and SMA are the core indicators, and the specific parameters are as follows:

• MACD fast moving average period: 12

• MACD slow moving average period: 26

• MACD signal line period: 9

• Very slow moving average period (SMA): 200

These parameters are classic MACD settings, which help users identify market trend changes by smoothing market prices. The 200-period SMA is used to determine the long-term trend of the market and provide a reference for opening and closing positions.

2. Long position opening conditions

After determining the parameter settings, the next step is to define the specific opening conditions. For long positions, this strategy stipulates the following conditions:

• MACD histogram (hist) changes from negative to positive: This indicates that the market has changed from a downward trend to an upward trend.

• MACD value is greater than 0: Indicates that the current market is in an upward trend.

• MACD's fast moving average (fastMA) is higher than the slow moving average (slowMA): Confirms the market's upward trend.

• Closing price is higher than 200-period SMA (veryslowMA): Ensures that the current market is in a long-term upward trend.

When the above conditions are met at the same time, the system will automatically execute the long position opening operation. In addition, in order to control risks, this strategy uses the lowest price as the stop loss price (buyprice). Once the market price falls below the lowest price, the system will automatically stop loss and exit.

3. Short position opening conditions

Similar to long position opening, the conditions for short position opening are also based on the changes of MACD and SMA, but in the opposite direction:

• MACD histogram (hist) changes from positive to negative: indicates that the market has changed from an upward trend to a downward trend.

• MACD value is less than 0: indicates that the current market is in a downward trend.

• MACD fast MA is lower than slow MA: confirms the downward trend of the market.

• Closing price is lower than 200-period SMA (veryslowMA): ensures that the current market is in a long-term downward trend.

When the above conditions are met at the same time, the system will automatically execute the short position opening operation. This strategy uses the highest price as the stop loss price (sellprice). Once the market price breaks through the highest price, the system will automatically stop loss and exit.

4. Closing conditions

The closing conditions are an integral part of strategy execution, which determines when to exit the market to lock in gains or reduce losses. For this strategy, the closing conditions are as follows:

• Cancellation of long orders: If the slow moving average (slowMA) is lower than the 200-period SMA (veryslowMA), cancel the long order (MACDLE).

• Cancellation of short orders: If the slow moving average (slowMA) is higher than the 200-period SMA (veryslowMA), cancel the short order (MACDSE).

These conditions ensure that when the market trend reverses, the system can close the position in time to avoid profit taking or loss expansion.

III. Risk Management

In quantitative trading, the importance of risk management is self-evident. Even if the strategy itself performs well, if there is no effective risk control, it may still cause huge losses due to a single unexpected fluctuation. Therefore, a reasonable risk management strategy is the key to ensuring the long-term stable profitability of the strategy.

1. Maximum intraday loss protection

This strategy sets a 50% maximum intraday loss protection mechanism, that is, if the loss on the day reaches or exceeds 50% of the account funds, the system will automatically close all positions. This mechanism ensures that even in extreme market conditions, the user's funds can be effectively protected to avoid the account being emptied due to large market fluctuations.

2. Stop loss and take profit mechanism

In addition to the maximum intraday loss protection, this strategy also sets a stop loss and take profit mechanism. When opening long and short positions, the lowest price and highest price are used as stop loss points respectively. Once the market price breaks through the stop loss point, the system will immediately close the position to avoid further losses. At the same time, users can also set the take profit point according to the market situation. Once the predetermined target is reached, the system will automatically close the position to lock in the profit.

Fourth, color and graphic settings

In order to help users understand the market trend more intuitively, this strategy also sets the dynamic changes of color and graphics to visualize the current market status.

• Green indicates an upward trend: When the MACD and SMA indicators show that the market is in an upward trend, the K-line and background will be displayed in green, reminding users that the current market is in a long state.

• Red indicates a downward trend: When the MACD and SMA indicators show that the market is in a downward trend, the K-line and background will be displayed in red, reminding users that the current market is in a short state.

This dynamic change of color and graphics enables users to quickly identify market trends and make corresponding trading decisions.

V. Strategy Summary

Through the effective combination of MACD and SMA, this strategy aims to capture market trends by using price breakthroughs of key moving averages and changes in MACD signals. It not only helps users seize trading opportunities when market trends are clear, but also prevents unexpected large losses through strict risk management mechanisms.

The characteristics of this strategy are:

1. Accurate opening and closing conditions: Through the cooperation of MACD and SMA, this strategy can accurately identify market trend changes and ensure opening and closing positions at the best time.

2. Strict risk management: By setting the maximum intraday loss protection and stop loss mechanism, the strategy can effectively control risks and ensure the safety of user funds.

3. Intuitive graphic visualization: Through dynamic color and graphic changes, strategies can help users understand market trends more intuitively and make timely trading decisions.

In general, 3EX CryptoGPT provides a powerful platform that enables users to easily create, optimize and execute quantitative trading strategies. Through reasonable strategy design and strict risk management, users can achieve automated profits in a rapidly changing market, truly subverting traditional trading methods.

VI. Future Outlook

With the continuous development of AI technology and blockchain technology, 3EX CryptoGPT will undoubtedly play a more important role in future quantitative trading. Through continuous technological innovation and the accumulation of user feedback, the platform will continue to optimize its strategy building function and provide users with more accurate and flexible quantitative trading tools.

In the future, 3EX CryptoGPT also plans to introduce more technical indicators and trading tools to further enhance the diversity and adaptability of strategies. At the same time, as the user base continues to expand, the platform will accumulate more market data, which will further improve the accuracy of AI algorithms and the profitability of strategies.

For every investor who hopes to succeed in the digital currency market, 3EX CryptoGPT is undoubtedly a trustworthy partner. Through the detailed explanation of this article, we can see that through reasonable strategy construction and strict risk management, users can achieve real automated profits on this platform and create their own quantitative trading path.

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