ST Bot (Short): Entry & Averaging Logic

1. General Concept

ST-Bot follows the “pump → short → position management” model.

The goal is to detect impulsive rallies (pumps) on altcoins, enter a short on a confirmed reversal signal, and manage the position to target using take-profit, trailing, and averaging if price keeps rising against the position.

2. Workflow

2.1. Pump Detection

• Scan a list of altcoins on the selected timeframes.
• Flag a candle body increase (“open → close”) above a set threshold (e.g., ≥ X%).
• Additionally check maximum wick length (as % of body) and minimum daily volume.

2.2. Admission Filters

• 24h price-change filter (to avoid shorting a bottom/after a dump squeeze).
• Funding constraints (rate and charge frequency, e.g., no more frequent than once every 4 hours).
• Exclude low-liquidity and non-copy-trading instruments (per settings).

2.3. Reversal Confirmation

• On the selected timeframe/TF stack, evaluate indicators/conditions for reversal probability.
• If the probability exceeds the threshold, generate a short entry signal.

2.4. Position Opening

• Open a short position (perpetuals).
• Position size per settings (percentage of balance / fixed amount with an upper risk cap).
• Immediately place take-profit; optionally add protective limit TP, trailing stop, and/or break-even stop (BE) per activation rules.

2.5. Trade Management

• Hold the position until TP/trailing/BE is hit, or adjust according to averaging rules if price keeps rising and TP is not reached.

3. Averaging Logic

3.1. Price Tracking

After entry, the bot compares current price to the average entry price and monitors adverse deviation (upward, against the short).

3.2. Averaging Conditions

Averaging starts only if both conditions are met:

1. Price increases by the configured percentage (e.g., +3%, +6%, +10%).
2. A reversal signal appears on the selected timeframe.
3. This prevents mechanical adding and reduces the risk of averaging into a straight pump.

3.3. Averaging Settings

• Deviation thresholds are set per timeframe.
• The averaging multiplier defines how much the size increases relative to the current position (e.g., ×1.2, ×1.5).
• Cascade: with deeper drawdown, move confirmation search to a lower TF to avoid waiting for a slow setup on a higher TF.
• Funding limits (rate/frequency): averaging is blocked if constraints are not met.

3.4. Result

When conditions are satisfied, the bot adds contracts (increases the short), recalculates the average entry (moves closer to market), and shifts TP to the new average. Exit occurs on the correction/dump via TP/trailing/BE.

4. Strategy Advantages

• Impulse-driven operation: entries only on a confirmed reversal.
• Flexible filtering (liquidity, 24h dynamics, funding).
• Signal-based averaging + TF cascade — lower risk of adding into a vertical rise.
• Adaptable to market phases (profiles/sentiment) and specific timeframes.