Momentum Bot
Last updated
Last updated
Momentum trading, also known as directional trading, is a strategy that capitalizes on the continuation of existing market trends. By identifying and riding the wave of upward or downward price movements, traders aim to generate profits by trading in the same direction as the trend. The Momentum Bot enables traders to go long (betting on price increases) or short (profiting from price declines), offering flexibility and precision to suit diverse market conditions.
Access the Web App at https://app.stockhero.ai
Go to the Bots page
Then click the Create New Bots >> Momentum bot button as shown in the image below.
You will see the Create New Bot page.
Please note that for Momentum Bot, you can only create one extra order. This means the bot only allows you to execute a total of two trades (base order + extra order) in a single direction. This is to prevent the dollar-cost-averaging effect from taking place if the extra orders is alot. A user can always use the DCA bot for sustained trade execution in a single direction.
StockHero's Momentum bot allows you to configure two triggers for executing trades.
The Base Order value instructs the bot to buy when the price increases by X% from the price captured at the time when the bot is created.
For example, if the value is 2% (as shown in the image above), this means that if the price of the share is $100 when the bot is created and the price goes to $102, the bot will place a base order.
The Extra Order value instructs the bot to buy again if the price increases by Y% from the price captured at the time when the bot is created.
For example, if the value is 4% (as shown in the image above), this means that if the price of the share is $100 when the bot is created and the price goes to $104, the bot will place an extra order.
Please note that it is optional to set the Extra Order percentage.
The Take Profit or Stop Loss level is based on the average purchase price of the Base and Extra order prices.
