Spot Bot: Entry and Averaging Logic (Spot-Bot)

1. General Concept

Spot-Bot operates on the “leader → altcoins” model.

The user selects a leader (BTC, ETH, or SOL), and the bot uses it as the main indicator of market direction.

The bot’s goal is to identify altcoins with strong correlation to the leader and open spot positions when growth probability is confirmed for both the leader and the altcoin.

2. Workflow

2.1. Choosing the Leader

The user selects one of the market leaders:

• BTC (Bitcoin)
• ETH (Ethereum)
• SOL (Solana)

The chosen leader sets the market direction on the selected timeframe.

2.2. Finding Correlated Alts

• The bot analyzes a list of altcoins.
• It calculates the correlation of returns with the leader over a given window (e.g., 30–60 candles).
• Only altcoins with a correlation coefficient above the threshold (e.g., ≥0.7) are selected.

2.3. Leader Growth Probability

• The bot evaluates the probability of growth for the leader on the chosen timeframe.
• If the probability exceeds the threshold (e.g., >65%), a signal is generated.

2.4. Altcoin Confirmation

• For each selected altcoin, the bot checks growth probability.
• If the signal matches the leader’s direction, the alt is confirmed as a candidate for entry.

2.5. Position Entry

• The bot opens spot long positions on confirmed alts.
• Entry size depends on settings:
• fixed amount,
• or percentage of deposit.

2.6. Entry Filter (Borrowable, White List)

Borrowable. If enabled, only those spot assets that the exchange accepts as collateral for the Unified Trading Account (borrowable coins) are eligible. If disabled, this restriction does not apply.

White List.

Two modes are available:

• Auto. The list is generated automatically based on configured thresholds (correlation with the leader, liquidity, etc.) and is refreshed on each recalculation.
• Manual. The user specifies tickers manually — only these will be traded.

All active filters apply simultaneously: the final eligible universe for entry is the intersection of conditions (Borrowable, White List, etc.).

White List sort order — ticker prioritization

This option defines the order in which the bot processes tickers from the white list after all filters (Borrowable, correlation, volume, etc.). It’s not an additional filter; it sets processing/entry priority—especially important when there’s a cap on simultaneous positions.

Options:

• Correlation (desc) — highest correlation with the leader first.
• Use when tight synchrony with BTC/ETH/SOL is critical (stable leader-following).
• 24h Volume (desc) — highest daily volume first.
• Use when liquidity matters and slippage must be minimal.
• 24h Price change (losers first) — biggest 24h decliners first.
• Use for mean-reversion scenarios (bounces in major losers when the leader signals).
• 24h Price change (gainers first) — biggest 24h gainers first.
• Use for momentum scenarios (continuation in top gainers when the leader signals).

Note: desc = descending. The sort controls which coins are processed/selected first when there’s a limit on the number of entries/positions.

3. Averaging Logic

3.1. Price Tracking

After entry, the bot monitors the price relative to the average entry price.

3.2. Averaging Conditions

Averaging is triggered only if two conditions are met:

1. The price has dropped by a set percentage (e.g., -3%, -6%, -10%).
2. A reversal probability appears on the selected timeframe.

This prevents premature averaging and reduces the risk of “catching a falling knife.”

3.3. Averaging Settings

• Averaging percentages can be set for different timeframes.
• Market sentiment adjusts the approach:
• Bullish phase → more aggressive averaging.
• Bearish phase → more conservative averaging.
• Averaging multiplier sets how much the new order size increases compared to the previous one (e.g., ×1.2, ×1.5).

3.4. Result

When conditions align, the bot executes an additional buy.

The average entry price decreases, improving the chances of closing the trade in profit when the market reverses.

4. Strategy Benefits

• Flexible leader selection (BTC, ETH, SOL).
• Entry only into highly correlated altcoins.
• Averaging based not just on percentage drop, but also reversal probability.
• Fully customizable for different market conditions.