AI Crypto Rotation with Trend Scores, News Checks, and Trailing Stops
Summary
This article outlines a crypto rotation system that ranks liquid coins using moving-average alignment, the widening or narrowing of moving-average gaps, and the direction of those averages across several timeframes. It selects stronger positive and negative candidates while keeping existing positions visible to the decision process. Recent public news is then used as confirmation or a caution signal, and an AI model advises whether to open, hold, close, or reverse positions according to signal strength, news, and current profit or loss.
Trades use a fixed notional amount converted into contract quantity, with exchange precision and size limits applied. A separate process monitors positions and closes them when profit retreats sufficiently from its recorded peak. The article describes dashboards for account status, AI decisions, and open positions. It is an implementation blueprint, not evidence of profitability: the author notes that moving averages lag, news can be delayed or missing, and AI may fail during unusual events. Fixed sizing also does not adapt automatically to changing account equity or market volatility.
Key ideas
- The ranking layer combines moving-average structure, gap changes, and average direction across multiple timeframes.
- News is treated as context for technical signals, while missing or conflicting news can affect the AI’s recommendation.
- The AI supervises position decisions, including conditional exits and reversals, rather than supplying a demonstrated predictive edge.
- Fixed-notional sizing standardizes exposure across differently priced contracts but does not scale with account equity.
- A separate trailing-stop process tracks peak profit and can close positions after a specified giveback.
- Lagging indicators, delayed news, model errors, and inflexible sizing are material limitations of the design.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.