Entry rules

Overview

Thanks to Obside's interface "no code" you only need to describe your strategy in natural language, and our artificial intelligence creates the resulting trading robot.

The entry rules determine when to open a position, whether it is for a buy (Long) or a sell (Short).

Note:

• In trading, a strategy must include both entry and exit rules to actively manage positions.

• In investment, you can define entry rules only if you wish to accumulate assets without planning systematic selling.

How to effectively write entry rules?

Obside's artificial intelligence understands a very wide range of phrasings, but a smooth and logical syntax maximizes interpretation effectiveness. Well-structured and clearly punctuated sentences reduce the risk of error.

Artificial intelligence is not a magical technology that is supposed to guess what was not explicitly stated. An omission or an unspecified inference can result in a partial or even incorrect interpretation of your rules.

A good way to write clear rules is to ask yourself:

“If I taught my strategy to someone else using only these rules, would they understand everything or would they have questions about unclear aspects?”

This approach will help you maximize the precision of your rules.

Rule examples

What are the current capabilities of Obside's AI?

Our artificial intelligence is constantly improving, and our long-term goal is the ability to test and automate all kinds of strategies, even the most complex. Many possibilities are available to you, including:

Use of different timeframes

The backtest of your strategy is done on the timeframe you specify in your rules. You can combine conditions occurring on different timeframes. For example, one condition must occur on a 1-hour chart, while another must occur on a 15-minute chart. You must therefore specify the timeframe to analyze for each condition involving a different timeframe.

The smallest usable timeframe is 1 minute.

Examples:

"Buy if the RSI is below 30 on the 1-hour chart and the 50 moving average crosses above the 200 moving average on the 4-hour chart."

"Enter a long position if the price breaks the 20-candle high on the 1-minute chart, but only if the trend is bullish on the 1-hour chart."

Managing the timing of rules

Not all entry conditions need to occur simultaneously. It is possible to wait for one condition to materialize before waiting for another. This is called the timing of events. Make sure to be explicit and clear when drafting your entry rules, so our AI understands the timing you have in mind!

Examples:

"Take a short position if the RSI rises above 70, then falls below that level within the next 5 candles."

"If a bullish crossover of the 50 and 200 moving averages occurs, then wait for a bullish candle to close above the 200 moving average before buying."

"Sell if the MACD crosses its signal line downward and at the same time the RSI is bearish."

Use of technical indicators

You can include technical indicators in your rules. Obside allows you to combine multiple indicators within the same strategy, across different timeframes and timings.

Each indicator uses default values. If you want to use a different value or parameter for an indicator, you just need to specify it in some way in your entry rules. For example: “Use the RSI with period 35.” or “RSI (35)”.

Using an indicator not included in the list of available indicators could trigger an interpretation error or a backtest failure.

The list of available technical indicators is regularly updated to include new indicators based on market trends and feedback from our users.

If you have suggestions or would like to see a specific indicator added to Obside, feel free to contact us. Your contribution is valuable in helping us adapt our services to your needs.

Indicators list

Use of Japanese candlestick patterns

You can incorporate chart patterns and Japanese candlestick structures (candles) into your strategy rules. Many patterns are understood by our AI, including the most used ones (engulfing, morning star, three white soldiers, etc.).

Examples:

"Buy when the price forms a bullish engulfing after three consecutive red candles."

"Buy after the formation of a bullish hammer with a lower wick representing at least 50% of the candle."

"Buy when three white soldiers form on a 1-hour chart."

Use of measurement units

You can use units of measurement such as pips, prices, ticks, percentages, multiples of ATR (volatility), or time. You can even specify from which reference point a measurement should apply. This reference point can be a time marker, or a price or indicator value.

Examples:

"If the price drops 2% compared to yesterday's closing price, then …"

"When the highest price of the last two weeks is exceeded by 2 pips, buy."

"When the 20-day moving average increases for 4 consecutive days, then …"

Custom risk and position sizing management

Obside allows you to dynamically adjust your position size based on specific criteria. You can set evolving rules to manage risk according to your trade results or other market conditions.

This flexibility allows you to adapt your strategy to market conditions and optimize your risk management.

Examples:

"Start with a risk of 0.5%, then decrease it by 10% when a trade is losing and increase it by 5% when a trade is winning."

"Invest $50 in Bitcoin every week. If BTC's price is below its 200-day moving average, double my investment."

"I want to risk 1% of my capital on Tesla stock if the price is below the 200 EMA or 0.5% if the price is above."

Correlations between assets

With Obside, your trading decisions can be influenced by the behavior of other assets. You can thus trigger orders based on conditions observed in another market.

This capability allows you to implement inter-market strategies and integrate correlation analyses directly into your rules.

Example:

"Buy Bitcoin with 5% of my capital when the NASDAQ is up for 3 consecutive days."

Order scheduling and time-based management

Obside's artificial intelligence takes into account precise temporal conditions to execute your orders. You can specify fixed times or use market session-related events to define your entries and exits.

This feature is particularly useful to adjust your position-taking to periods of high volatility or specific market habits.

Examples:

"Buy at 14:00 UTC."

"Buy at the opening of the New York session."

Medium-to-long term investment concepts: DCA and rebalancing

Obside incorporates strategies suited to investors seeking to position themselves for the long term, notably Dollar Cost Averaging (DCA) and the portfolio rebalancing.

With these features, you can automate your investments according to a disciplined approach and a strategic asset allocation.

Examples:

"I want to do a $30 DCA on Bitcoin every first Monday of the month at 10:00."

"Build a portfolio composed of 30% Bitcoin, 40% S&P 500 and 30% CAC40. Each quarter, invest $500 and rebalance the portfolio to maintain this allocation."