Available for Premium and Professional users
CryptoHero's latest revolutionary Strategy Designer allows a trader to create complex strategy easily. A complex strategy can also be loosely called a MultiStrat in the hedge fund world. Multiple strategies are combined to create an overarching strategy. For example, a long-short strategy is considered MultiStrat as it consists of a long followed by a short strategy, with each executing consecutively.
CryptoHero's Strategy Designer offers advanced traders the ability to create complex strategies that capture a greater part of the market movement. For example, a trader can create a long-short strategy using our Strategy Designer.
The actual implementation is via Daisy-Chain in CryptoHero. The Strategy Designer is only available for Advanced bot type.
Let us illustrate with an example on how to implement a Long-Short MultiStrat strategy.
- User creates Bot X (Advanced Bot) for Long strategy
- User creates Bot Y for Short strategy
- User configures Bot X to activate Daisy-Chain and also the "First in Daisy-Chain" option. When enabled, bot X will start to run after it is created. See picture below.
(Advanced Bot X settings)
- User sets Bot Y to activate Daisy-Chain but "First in Daisy-Chain" is NOT enabled. When bot Y is created, bot Y will NOT run. Its trigger is from Bot X as we will see below
- User sets bot X exit condition to trigger bot Y after X completes a deal. Similarly, Bot Y's exit condition has been set to trigger Bot X after Y completes a deal
- After X and Y are created, only X will run and monitor the market
- Bot X completes a deal and X sends trigger to Bot Y. X will NOT auto-restart. X will be deactivated
- Bot Y activates and monitors the market
- Bot Y completes a deal and triggers Bot X
- Bot X "wakes up" from its deactivated state and start to run. The whole cycle repeats.
As shown in the example above, a user has successfully created a Long-Short strategy.
A user can link two or more bots in a daisy-chain as well.
[Bot A] > [Bot B] > [Bot C] > ….. > [Bot Z]
If the LAST bot Z has NO trigger condition in the EXIT condition, the whole strategy (Bot A to Z) will only run once. But, if Bot Z Exit Condition has a trigger to Bot A, then the whole strategy repeats. I.e. Bot A will “wake up” and start to monitor the market.
CryptoHero Strategy Designer is like a 4GL programming language for automated trading. A trader can create multiple bots, each with its own condition in order to create a single wholistic strategy. It is really up to the trader's expertise and imagination on what complex strategy to setup using the Strategy Designer.
Three bots MultiStrat
Above strategy will cause the following sequence: A > B > C > A > B > C > (repeats)
Bot A will activate on creating/updating since Activate Daisy-Chain = True AND First=True
Above strategy will cause the following sequence: A > B > C > B > C > (repeats)
You can see that Bot A is only run once as no other bot triggers Bot A.
Above strategy will cause the following sequence A > B > C > D > A > (repeats)
Above strategy will cause bots A and C to be activated together.
Sequence: A > B > C > D > A > (repeats)
What if Bot C activates BO first?, then, it will look like
C > D > A > B > C > D > A > (repeats)
Hence, there is a danger of “race condition” (in computer science where two resources compete for the same resource X) if a user sets two bots as First=True in a single daisy-chain.
So if a Bot X calls another bot Y to activate and Y is already active, X will become deactivated (as per normal like a daisy-chain bot) but an error message will appear “Attempt to call an active bot in the daisy-chain”. HOWEVER, X can still be activated again if another bot triggers X as part of the daisy-chain.
Multiple daisy-chains can be created as well such that each chain of bots are mutually exclusive.
Daisy-Chain linking can also be activated for TradingView signals.
Whenever a signal is received and if the bot has daisy-chain enabled, CryptoHero will check if the bot is "First in Daisy-Chain". If yes, the bot will execute a trade. If not, the bot will check prior linked bot to see if it has already completed a deal. If yes, the bot will execute a trade, else it will do nothing.