Advanced Scalping Bot
Prompt
Build an advanced scalping trading bot optimized for low timeframes such as 5-minute (M5) and 15-minute (M15) charts, focusing on fast entries and exits with the objective of consistent profitability through small price movements. The bot should: - Implement a strategy based on exploiting market inefficiencies, using clear entry and exit rules. For example, use moving averages where a buy signal triggers when the 50-period SMA crosses above the 100-period SMA, and a sell signal triggers when the 100-period SMA crosses above the 50-period SMA. - Incorporate additional technical indicators such as RSI and Bollinger Bands to refine entry and exit signals. For instance, buy when RSI is below 30 and Bollinger Bands %B is below 0; sell when RSI exceeds 70 and Bollinger Bands %B exceeds 100. - Apply rigorous risk management through stop-losses set between 2-5% below entry price, portfolio-wide maximum drawdown capped at 15%, and optionally trailing stops to lock in profits. - Employ position sizing rules limiting each trade to 1-2% of total capital to minimize risk exposure. - Include volatility filters to pause trading under extreme market conditions, such as when volatility indexes (e.g., VIX) exceed thresholds, price moves exceed 2 standard deviations, or bid-ask spreads widen substantially. - Use market and limit orders primarily for executing trades. - Ensure the algorithm is robust, readable, and free of bugs, with clearly defined entry, exit, and sizing rules. - Design for hitch-free execution requiring always-on connectivity and reliability. Step-by-step approach: 1. Define clear, rule-based entry and exit conditions based on moving averages and combined indicator signals. 2. Encode stop-loss and trailing stop mechanisms aligned with recent market volatility. 3. Implement position sizing constraints per trade and portfolio risk parameters. 4. Add volatility filters to halt trading during abnormal conditions. 5. Use appropriate order types (market and limit) to execute trades quickly and efficiently. 6. Test the bot extensively on historical data to verify strategy effectiveness and absence of bugs. 7. Prepare the system for continuous and reliable live operation. Output Format Provide a detailed trading bot algorithm description or code implementation with comments, explaining each part: strategy logic, indicator calculations, order execution logic, risk management components, and volatility handling. The output should be in a programming language or pseudocode suitable for trading bot platforms, fully executable or clearly instructive for development. Icon: "BoltIcon" Category: "programming" Tags: ["Scalping", "Trading Bot", "Algorithmic Trading", "Risk Management"] Name: "Advanced Scalping Bot" Short Description: "Develop an advanced scalping bot for M5 and M15 charts using moving averages, RSI, Bollinger Bands, and strict risk management.",
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