HOW-TO: Accumulation Strategy 2024

22 Mar

What if instead of buying a stock, crypto, currency only once and holding until we are in profit, we split our strategy capital and buy several times, until the total is in profit ? Yes, that is DCA you’d say. Ok, but what if instead of buying at predetermined intervals, we bought at oversold RSI, or on a double bottom, for example ? That’s the idea behind the Accumulation Strategy, which I’m going to explain in detail in this article.

█ Simple Example
The strategy comes with several features, and the easiest way to explain them is through examples.
The Max Active Deals input allows to limit how many times the strategy can trigger a buy in a trade, just like the pyramiding setting. It can go up to 100.
In this example, the strategy has 10 max active deals. and is using the RSI feature to buy when RSI crosses below a configurable threshold, here 25.

Note: to get stronger signals, the RSI time frame has been set to 1 hour, since the chart is in a 30 min time frame.



In this trade, the strategy bought 8 times (yellow arrows) before selling at take profit, but it could have bought twice more.

█ Take Profit Feature
Customisable in the input tab, this feature allows you to set one or multiple take profit(s). You can set the value in either %, pips, or Auto mode.
To create multiple targets, increase the Number of take profit and set the Step between each TP.



In our previous example, instead of just one, I set 3 TPs with 1% value and a step of 1. The strategy will sell progressively at a quantity split even at each take profit, until the last TP is hit.

Note: Using multiple take profit is often used to improve risk management in trading.

█ Built-in Entry Options
The strategy comes with several built-in indicators, such as the RSI that we’ve seen, but here’s the list:

• MTF RSI cross, RSI divergences
  
• MTF Stochastic cross
  
• MTF Bollinger Bands cross
  
• Top & Bottoms
  
• Double Top & bottoms
  
• Higher/Lower Lows/Highs
  

Custom External Entries
If you want to use ANY external indicator from the TradingView library and use it as an entry signal, you can!


For example, let’s use the Squeeze Momentum Indicator by Lazybear. After adding it to the chart, we select the first plot which is the histogram. Then we select the condition “crossover” and “0”. It will create a buy when the histogram turns green.



█ Trend Filters
In trading, we try to avoid going against the global trend.
The strategy comes with several built-in trendlines, MTF, or you can use ANY external trendline from the TV library.



The strategy offers other built-in filters such as volume, overbought in range/trending market, or flat market entry filters.

█ Stop Loss
The stop loss can be turned on/off. You can set the value in either %, pips, ATR or Auto mode.



Note: When to use a Stop Loss? Using a stop kind of defeats the purpose of the strategy, but it can be useful if you plan to trade highly volatile and risky coins (remember LUNA ?) That is why the option is there.

█ How to use the strategy
The indicator access is unlocked by subscribing on my website. See the links below this article.

█ Setting up a strategy
You can set up a strategy on your own chart in just one click using the preconfigured charts I will share below, or you can simply add the indicator yourself and play with the settings.

Backtesting
Backtesting is automatically done in the Strategy Tester Tab.

Creating Alerts
Once you have your strategy setup on the chart:
1 - Set the alert message in the indicator inputs (scroll to the bottom, you will find an “alert’ section)
2 - Save your chart and do not touch it anymore unless you want to update your alert (optional but recommended)
3 - Create an alert on Cyatophilum Accumulation Strategy, using the option “alert() function calls only” (this is really important!)
Only one alert is needed to handle all the strategy events! (entry, take profit, stop loss, etc.) Even a free TradingView user can create a strategy!

Automation
The subscription that I offer also comes with Automation bots using the Binance spot trading API.

Important: if you wish to automate your strategies, make sure your TradingView account has access to alert webhook notifications.

That’s it for this tutorial!
Pretty easy right? No, I know it can get complicated at first. 😣
That is why I make preconfigured charts. Once you have access, click on the chart link, then click “copy”, then “save” your “layout” to get your own chart that you can use and edit. Enjoy!


█ Preconfigured charts

BTC/USDT

Chart: tradingview.com/chart/9amYIHMF/

ETH/USDT

Chart: tradingview.com/chart/4YZ8sNAs/

BNB/USDT

Chart: tradingview.com/chart/sM4WcNl4/

MATIC/USDT

Chart: tradingview.com/chart/9oVKK2kw/

EGLD/USDT

Chart: tradingview.com/chart/m3HIKBcR/