Idatco’s momentum trading strategies enable automated cross-currency and cross-exchange trading.
These strategies can rebalance portfolios across XRP and stablecoins (USD, EUR, GBP) on third-party exchanges, capturing price trends and arbitrage opportunities while minimizing volatility exposure.
Users can select from order types including market, pegged, auto-pegged, take-profit, and predictive orders, guided by indicators such as the Funds Matrix, RSI, Bollinger Bands, and MACD.
To configure the strategy, investors specify:
- Frequency: Number of strategy deployments.
- Timing: When to open and close trades.
- Assets: Currency pairs to trade (e.g., XRP/USD, XRP/EUR).
- Exchanges: Trading platforms to use (e.g., Kraken, Xago).
- Cancellation: Conditions to terminate trades.
Set up your momentum trading strategies:
- Login to your Idatco account.
- Navigate to your Momentum Trades > Create a Strategy.
- Enter a name for your strategy.
Tip: Use a consistent naming convention across all trades to quickly understand each strategy’s purpose at a glance. - Select the exchange and corresponding currency and amount to start the trade.
- Select which currency you want to trade with.
- Select where (exchange) and what currency to end with.
- Configure how to open a trade eg. market or predictive limit.
- Configure when to open a trade by selecting one of the available indicators.
You can select several indicators. - Configure how to close a trade eg. market, predictive limit or take profit.
- Configure when to close a trade by selecting one of the available indicators.
You can select several indicators. - Select how to cancel a trade by selecting a type from the dropdown list.
- Select when to cancel a trade: Toggle the Enable based on time and /or Enable based on price, enter a value and for Enable based on time select a time value from the dropdown list (eg. seconds, minutes, hours etc.).
- Click the Save button to save your strategy.
TERMS EXPLAINED
Deployments in Trading Strategies
The “number of deployments” refers to the frequency or total count of times a trading strategy is executed within a defined period (e.g., daily or weekly) on third-party exchanges.
Each deployment triggers the algorithm to analyze market data using indicators like Funds Matrix, RSI, Bollinger Bands, and MACD, execute trades in XRP and stablecoins (USD, EUR, GBP), and rebalance portfolios to capture price trends or arbitrage opportunities.
Smaller orders are executed faster on exchanges, typically filling at the quoted price, while larger orders may take longer and be filled at multiple price levels due to market liquidity constraints, potentially causing slippage.
Funds Matrix in Trading Strategies
The Funds Matrix, accessible through your Idatco account here, is a proprietary tool that enables users to allocate their fiat holdings across supported third-party exchanges (e.g., Kraken, Xago) at specified percentages.
Designed to optimize portfolio management, the Funds Matrix ensures that asset allocations align with predefined targets to support Idatco’s cross-currency and cross-exchange momentum trading strategies.
In momentum trading, the Funds Matrix indicator restricts trades to those that advance portfolio allocations toward the set percentages, calculated in USD.
Investors specify:
- The proportion of fiat to be held on each exchange.
- The percentage that specific fiat stablecoins (e.g., USD stablecoins like USDT, EUR stablecoins like EURC, GBP stablecoins) should constitute within the total portfolio.
See the image below for a visual representation of the funds matrix:
RSI (Relative Strength Index) in Trading Strategies
The RSI is a technical indicator that measures the speed and change of price movements to determine if an asset, like XRP or a stablecoin pair (e.g., XRP/USD), is overbought or oversold. It ranges from 0 to 100.
An RSI below 30 suggests an asset is oversold (potentially undervalued), signaling a buy opportunity (e.g., buying XRP on Kraken when RSI < 30).
An RSI above 70 indicates an overbought condition (potentially overvalued), signaling a sell opportunity to lock in profits.
Example: If XRP/USD’s RSI drops to 25 on Kraken, the algorithm deploys a buy order, expecting a price rebound, then sells when RSI nears 70.
Bollinger Bands in Trading Strategies
Bollinger Bands are a volatility indicator consisting of a middle band (a simple moving average, typically over 20 periods) and two outer bands set at standard deviations (usually 2) above and below the average.
They show how far an asset’s price deviates from its average, indicating volatility and potential price breakouts.
When an asset’s price (e.g., XRP/EUR) touches or crosses the lower band, it may be undervalued, signaling a buy opportunity.
When the price touches or crosses the upper band, it may be overvalued, signaling a sell opportunity.
Narrow bands indicate low volatility (consolidation), suggesting a potential breakout, while wide bands indicate high volatility.
Example: If XRP/GBP on Binance at $0.80 touches the lower Bollinger Band, Idatco’s algorithm deploys a buy order, expecting a price increase, and sells when the price nears the upper band at $0.82.
MACD (Moving Average Convergence Divergence) in Trading Strategies
MACD is a trend-following indicator that shows the relationship between two moving averages of an asset’s price (typically the 12-period and 26-period exponential moving averages).
It consists of the MACD line (difference between the two averages), a signal line (9-period average of MACD), and a histogram showing the gap between them.
A bullish signal (buy opportunity) occurs when the MACD line crosses above the signal line, indicating upward momentum (e.g., buying XRP/USD on Kraken).
A bearish signal (sell opportunity) occurs when the MACD line crosses below the signal line, indicating downward momentum.
Example: If the MACD line for XRP/USD crosses above the signal line on Kraken, the algorithm deploys a buy order for 500 XRP at $0.60, selling at $0.62 on Xago when the MACD reverses, capturing a $1 profit per deployment (using fill rates).
