Building a Random dYdX Strategy with Fixed Stops and Scaling

Summary

This article walks through a deliberately random directional strategy for dYdX. It selects long or short entries with equal probability, uses fixed profit and loss thresholds to exit, and increases the next order size after a loss while resetting size after a win. The implementation discussion covers order placement, position checks, cancellation of pending orders, account tracking, and monitoring market depth.

The article frames the strategy as a coding exercise rather than a trading recommendation. It mentions a backtest on Binance Futures intended mainly to find implementation bugs, then describes running the strategy for observation; the screenshots provide no inspectable quantitative evidence in the text. The author raises transaction fees and slippage as costs that can hurt outcomes, and the loss-driven size increases create substantial risk. No proof of positive expectancy or reliable performance is offered, and the article explicitly cautions against live deployment.

Key ideas

• The example chooses long or short entries randomly, without using market indicators or prices to set direction.
• Fixed profit and loss thresholds determine when positions are closed.
• After a loss, the strategy increases its next order size, then resets size after a win.
• Fees and slippage can reduce the outcome of a strategy with random entries.
• The backtest is presented as a bug check, not evidence of profitability.

Tags

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