Threshold-Based Momentum Trading on Binance USDT Perpetuals
Summary
This educational strategy trades BTC USDT perpetual futures when price moves more than a configurable percentage away from a tracked base price. An upward move triggers a long entry and a downward move triggers a short entry, provided there is no open position and the balance-based quantity exceeds a minimum. The base price resets after entry, so subsequent signals are measured from that new level.
The script sets leverage and contract precision, periodically cancels outstanding orders, and closes a position when its profit or loss relative to margin crosses configured thresholds. The published backtest settings use one-minute data over a period in May 2021, but the document provides no performance results. It also does not explain how thresholds were selected or address broader validation across market conditions. Because the method reacts to price changes without additional trend or volatility filters, its results may depend heavily on execution, fees, leverage, and the chosen parameters.
Key ideas
- The strategy opens long or short positions after price moves beyond a percentage threshold from its base price.
- The base price resets to the latest price after an entry.
- Position size depends on account balance, the threshold, leverage, and current price.
- Positions close when profit or loss relative to margin reaches configured limits.
- The supplied one-minute backtest settings contain no reported performance results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.