velox trading strategies booklet

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VELOX TRADING STRATEGIESBOOKLET


WHAT ARE TRADING BOTS?Trading bots are programmable systems which allow a trader to execute token swaps faster and more efficiently than a human being. These swaps are defined by the user according to thought out pricing estimations. For a large percentage of worthwhile trading bots, software is downloaded onto your computer. In addition, full access to your wallet is needed in order for the bot to execute trades for you. Some platforms even require a traders’ computer to run 24/7 in order to execute. Velox removes many of these challenges.

The Velox Algorithmic Trading Bot system utilizes server-side calculations and data process to perform the user-defined trade. This eliminates the need for 3rd party software to be included on your system. In addition, Velox is continuously monitoring the blockchain which means your trades can be executed 24/7. Transacting tokens only requires initial approval of the token via the Meta Mask wallet, similar to Uniswap. That means Velox will never require access to your private keys.

On the Ethereum blockchain, bot systems often utilize algorithms for calculating the necessary gas and slippage requirements to move a trade to the top of a forming block. The downfall to this type of efficiency is that bots can occasionally become trapped in “gas wars” which may end up losing the trader money. These are occurrences in which two bots seek to outbid each other on gas such that the price for gas may exceed the value of the trade. While these are relatively uncommon, they can prove costly if the software does not have automatic limiters to prevent these from exploding.

WHY USE A TRADING BOT?Trading bots are excellent tools for token traders of all experience levels for a variety of reasons. They give you more time to focus on learning about a project and the overall token behavior. You will also spend less effort trying to “time” your trades. Having to sit and wait for a price to reach an acceptable level, estimate the appropriate slippage,and hope your amount of gas is enough will often result in lost trades or unhappy outcomes. Beyond these challenges, bots provide faster access to useful, short term technical analysis approaches in a manner which makes them profitable.

WHAT ARE SOME STRATEGIES FOR USING THEM?There are many ways that you can use the Velox platform to execute your trading strategies. We will outline some of the basic and intuitive ones here from the Velox user interface. We will also outline how you can use the platform to plan and execute some more comprehensive strategies.


As you will see, by stacking strategies or operations through the platform, you can build increasingly sophisticated trading structures. This sequencing will greatly add to the opportunity when trading on decentralized exchanges.

We will outline some of the potential strategies that you may devise and execute using the Velox platform, but please don’t consider this guide in any way to be advice of any nature, and especially not an endorsement of any action or structure.As always, do your own research, make sure you understand how you are approaching your trading, and please use Velox as a tool to aid in that execution.

SIMPLE “SELL IF”Simple “sell if” strategy is the mirror of the strategy above. If the price goes above acertain level or below a certain price level in a token pair, you can instruct the Velox platform to execute the sale of a certain amount of tokens in your wallet. Again, same as the above but in the opposite, this could be used as a “sell limit” or a “sell stop” depending on how you interpret the strategy when entering your order.

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“BUY IF“ down, or “BUY STOP“

This may be the current price

“BUY IF“ up, or “BUY LIMIT“SIMPLE “BUY IF”Simple “buy if” strategy is just that, you may buy if a price goes up to a certain level or buy if the price of a pair goes down to a certain level. This may be considered a “buy limit” or “buy stop” depending on the definition of those terms that you use, and how you interpret your placing of that order.

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“SELL IF“ down, or “STOP LOSS“

This may be your entry

“SELL IF“ up, or “TAKE PROFIT“

”BUY IF” % CHANGE“Buy if” the price moves by a certain percentage in the last block (roughly every 12 seconds on Ethereum. This can be a positive or negative percentage. You could consider this a buy if the price moves up by a certain percentage or down by said percentage. You may want to set this to take advantage of a breakout (if you are expecting one), or to take advantage of a large sale that causes a dip. More time periods will be added to this function in the near future (ie: time period being different from simply the last block).

“SELL IF“ there was a certain percentage buy in the last block

This may have been your entry


STACKING ORDERSAs you can set stacking orders, even if you don’t currently have a position, the system will check wallet balances when the conditions are met and with that, determine if it is capable of executing the strategy. Given this information, you can enter a stacked strategy where you may enter a “sell if” order at a certain level below your entry, and a “sell if” order at a price above your entry. The order below will act as a hard “stop loss” and the “sell if” order above your entry would be considered a “take profit” by traditional definitions (see image in “simple buy if” strategy).

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“SELL IF“ there was a certain percentage drop in the last block

This may have been your entry

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“BUY IF“, the price makes it to support and you expect a bounce

You may set a “SELL IF“, or take profit here. This would only execute if the original buy

was completed

Current market price

You may “SELL IF“ at this level that would act as a “STOP LOSS“ for this strategy.

It would only execute if first the “BUY IF“ executed and you had an active position

STACKING ORDERS - ENTRY & EXITBuilding on the stacking concept above, you can also set a stacked strategy whereyou could instruct the system to “buy if” the price dips to a certain level, and then “sell if” the price hits a level above that, AND if the original buy had been executed. As an example here, assume the current market price is $1 and you set the buy if the price goes down to $0.90 and sell at $1.20. If the price goes down and hits your buy, you are in an active position. If it goes up subsequently and hits your “sell if” order, that could be the exit of your trade strategy. In the same example, if the price goes up directly from the $1 market price, and goes to your “sell if” order, it will simply not execute as you do not own the tokens. As you can imagine from this narrative example, you could stack and construct strategies here to trade inside a channel if you have identified that one may exist and expect it to continue. The ability to set orders where the tokens for that position are not currently held, is a powerful advantage of the platform and allows for more complex strategy development.

”SELL IF” % CHANGE”Sell if” the price moves by a certain percentage in the last block. You may also use apositive or negative movement as the trigger here. You may want to set this strategyif you want to take advantage of a large buy as a confirmation of your exit. The alternative may be if the price moves down by a certain percentage in the last block that this may be considered evidence of a reversal, or a cause a cascade if the percentage is large enough. This could be considered as a quasi “trailing stop loss”. This of course cannot be considered an absolute trailing stop loss as it is constrained by some time period. Currently that time period is the last block, but as above thiswill be expanded in short order to include other time frames for this % change to bequeried.


CHANNEL BREAKOUT STACKYou may also use the stacking of orders to devise a “channel breakout strategy” where you would essentially set 3 concurrent orders: 1 - a “buy if” order outside of the channel 2 - a “sell if” order inside the channel acting as a “stop loss” 3 - a “sell if” order as your “take profit”.

As you can see, there are many ways to stack conditions here, even with the initial conditions allowed on the Velox UI. We will be releasing more conditions that you may set through the UI as the adoption of the platform increases. We have already tested a multitude of additional conditions in sequence.

IMPORTANT NOTICE: Stacking strategies or conditions to form more complex trading systems requires a more thorough understanding of the implications of such strategies. If you have too many open orders that are in conflict with each other in the same token pair, the system will not discriminate which ones you “intended” to have working together. It simply searches in absolute real time if the conditions on any order have been met, if the tokens exist in the wallet to fulfill the strategy, and if so it will execute all orders. You can imagine how a conflict could arise if you have too many orders on one particular token pair, and you should take extra care and attention when stacking conditions or strategies.

If you have any questions when setting more complex strategies, please reach out to us via telegram but note that we cannot comment on the validity of the strategy, but rather will only be able to help you understand if the conditions set will conflict with each other, or work logically the way you are intending. All inquiries of this nature will be discussed in general terms and not relative to a specific position, token, or price level.

As we open up more conditions on the platform, you can see how the strategy stacks will increase exponentially. We are looking forward to hearing many of your insight and learning of different ways that our users are utilizing the platform. If you have any strategies that you would like to have considered for addition to this guide, please feel free to reach us on telegram https://t.me/veloxglobal

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You may conclude that if the price moved back into the channel it would invalidate the trade. This would invalidate the

trade. This would then be a “SELL IF“ or a “STOP LOSS“

You may conclude that this price level would indicate a break out and set a “BUY IF“ price level here

You may use a previous resistance to conclude this would be your

“SELL IF“ or “TAKE PROFIT“

velox trading strategies booklet

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