Trend Loop
Buy momentum, exit when it fades.
Waits for momentum to prove itself: a fast moving average crossing above a slow one buys, and the cross back below sells the whole position.
How it works
- 01The loop tracks a fast and a slow moving average of the price.
- 02When the fast one crosses above the slow one (a golden cross), it buys.
- 03It holds while the trend lasts — no fixed target.
- 04When the fast one crosses back below (a death cross), it sells everything.
Waits for momentum to prove itself: a fast moving average crossing above a slow one (golden cross) buys; the cross back below (death cross) sells the whole position. It buys strength instead of catching falling knives.
The math, on paper
- Entry and exit set by the crosses
- not a fixed %
- Profit = trend length minus the lag at both ends
- varies
- Round-trip fees still apply
- varies by exchange and tier
- Needs real trends
- not chop
Worked numbers assume 0.02% per side (the current Binance.US fallback schedule) and exclude spread and slippage. They are illustrations, not forecasts; fees vary by exchange and tier.
Best for
Trending markets with clean swings — after a base or a pullback turns into a real uptrend.
When it struggles
Sideways markets create false crosses: the loop buys a little high and sells a little low, over and over. It also enters later than dip-buyers — confirmation always costs a few percent.
Good to know
Trend Loop starts with a 10% stop-loss and the no-loss guard off, because cutting losers early is the strategy. Try it on a choppy market first — whipsaw is the price it pays for never catching knives.
What you set
- Fast / slow MA
- Moving-average windows in minutes — default 30 / 90
- Order size
- Per entry
- Stop-loss
- On at 10% by default
- No-loss guard
- Off by default for this strategy
Questions
What is a golden cross and a death cross?
A golden cross is when a short-term moving average rises above a longer-term one — a sign momentum has turned up. A death cross is the reverse. Trend Loop buys on the first and sells on the second.
Why does a trend-following bot lose money in sideways markets?
Moving averages lag. In chop they cross back and forth, so each flip buys slightly higher than it sells and pays fees both ways. That whipsaw is the cost of waiting for confirmation.
Related strategies
Educational content, not financial advice. Crypto prices can fall quickly and any loop can lose money. Risk disclosure.