A BTC Threshold Trading Rule That Buys Declines and Sells Rises

Summary

This simple BTC/USDT spot rule compares each new ticker price with the last price it processed. If price has risen by more than a set threshold, it sells a fraction of the BTC balance; otherwise, it buys using a fraction of available quote currency. After a price change, the program waits before checking again, while an unchanged quote causes it to loop without updating the reference.

The document provides only the implementation and a daily backtest configuration; it reports no performance measures or analysis. The rule has no stated position limits, fees, explicit stop loss, or exit plan beyond its threshold-based trades. As written, the buy condition also covers any price decline and small rises below the threshold, so the behavior is not a symmetric buy-low/sell-high rule. Results would depend on the threshold, polling behavior, balances, and execution costs.

Key ideas

• The rule sells a fraction of BTC after a rise exceeding its price threshold.
• It buys with a fraction of quote currency whenever the sell condition is not met.
• The prior reference price advances only after a changed quote, followed by a fixed wait.
• The document gives a backtest setup but no performance results or transaction cost analysis.
• Position limits, explicit risk controls, and a complete exit plan are not described.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.