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 for a buy (Long) or a sell (Short).
Note:
In trading, a strategy must include both entry and exit rules to manage positions actively.
In investment, you can define entry rules only if you intend to accumulate assets without planning systematic selling.
How to effectively write entry rules?
Obside's artificial intelligence understands a very wide range of formulations, but a fluid and logical syntax maximizes the effectiveness of interpretation. Well-structured and clearly punctuated sentences reduce the risk of error.
Artificial intelligence is not a magic technology that is expected to guess what was not explicitly told. An omission or an unspecified induction 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.
What are the current capabilities of Obside's AI?
Our artificial intelligence is constantly improving, and we ultimately aim for 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 performed on the timeframe you specify in your rules. It is possible for you to combine conditions that occur 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 a 20-candle high on the 1-minute chart, but only if the trend is bullish on the 1-hour chart."
Management of rule temporality
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 event temporality. Be sure to be explicit and clear when writing your entry rules, so that our AI understands the temporality you have in mind!
Examples:
"Take a short position if the RSI exceeds 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 below its signal line 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 temporalities.
Each indicator uses default values. If you want to use a different value or parameter for an indicator, you simply need to specify it in some way in your entry rules. For example: “Use the RSI with a period of 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 allowing us to adapt our services to your needs.
Use of Japanese candlestick patterns
You can integrate chart patterns and Japanese candlestick structures (candles) in your strategy rules. Many patterns are understood by our AI, including the most commonly used (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 measurement units such as pips, prices, ticks, percentages, multiples of the ATR (volatility) or time. You can even specify from which reference point a measure should apply. This reference point can be a time marker, or a price or indicator value.
Examples:
"If the price falls 2% from the previous day's closing price, then …"
"When the maximum price of the last two weeks is exceeded by 2 pips, buy."
"When the 20-day average price increases for 4 consecutive days, then …"
Custom risk and position size management
Obside allows you to dynamically adjust your position size based on specific criteria. You can define scalable rules to manage risk based on 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 0.5% risk, then reduce it by 10% when a trade is losing and increase it by 5% when a trade is winning."
"Invest $50 in Bitcoin each week. If BTC's price is below its 200-day moving average, double my investment."
"I want to risk 1% of my capital on the Tesla stock if the price is below the 200 EMA or 0.5% if the price is above."
Asset correlations
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 enables the implementation of cross-market strategies and the integration of correlation analyses directly into your rules.
Example:
"Buy Bitcoin with 5% of my capital when the NASDAQ is up for 3 consecutive days."
Order timing and temporal 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 hours of high volatility or specific market habits.
Examples:
"Buy at 14:00 UTC."
"Buy at the opening of the New York session."
Medium-long term investment concepts: DCA and rebalancing
Obside includes 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 DCA (Dollar Cost Averaging) of $30 into 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."
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