Reversio

Summary

Reversio is one of the most complex and powerful strategies of Alvisio.

Reversio uses sophisticated algorithms to compute multiple baselines and signals to detect the potential price-revert point aka buying or selling opportunities. Then, it will buy or sell the asset at market price to quickly take advantage of the mean reversion effect.

About Reversio

The mean reversion theory states that the assets' price tends to revert back to the average value over time. Typically, traders would gain profit by buying an asset when it has a low price compared to its historical average and selling it when its price is higher than its historical average.

Mean Reversion + Alvisio = Reversio

Being one of the most complex strategies of Alvisio, Reversio uses lots of sophisticated algorithms to compute multiple baselines and signals to detect the potential price-revert point aka buying or selling opportunities. Then, it will buy or sell the asset at market price to quickly take advantage of the mean reversion effect.

On top of that, Reversio is also equipped with the emergency stop defense mechanism to protect traders from the unexpected swings in the cryptocurrency market.

Traditional mean-reversion bot	Alvisio’s Reversio
Simple single signal (RSI, SMA,…) Require technical skill to setup python code No defense mechanism	Multiple complex signals (baseline, oscillator, RSI, HMA,…) + conditional deployment User-friendly UI with predefined parameters Emergency stop defense mechanism

Bot Settings & Defense Mechanisms

All of Alvisio's bots come with a set of predefined parameters (default settings) that can be launched with just a click of a button. Traders are welcome to adjust these settings to better suit their trading style.

General settings

General settings like choosing exchange & market, setting up trading amount,… are applied to all of Alvisio’s bots. Please find more details here.

Main settings

• Baseline lookback: number of past candles to calculate the baseline
• Oscillator lookback: number of past candles to calculate the oscillator
  
  
  
  
  

Order settings

• Entry/Exit density: The higher the density value, the slower the entry/exit
• Order spacing: ATR multiplier; how wide an entry is to the next
  
  
  
  
  
  
  

Deployment settings

Deployment settings serve as an extra layer of conditions for bidding on an asset.

• Deploy under price: Only place orders under this price
• Deploy under new low: Only place order under the new low price point
• New low’s lookback: number of past candles to calculate the low value
• Deploy under fair value: Only place orders under the fair price
  
  
  
  

Defense mechanisms

Reversio is equipped with emergency stop defense mechanisms to best co-op in the volatility and uncertainty of the market. You can read more about it in Defense Mechanisms.

• Post-stop action: You can choose between Pause bot and Continue trading

  • Pause bot: pause the bot immediately right after placing an ask order to get out of trade.
  • Continue trading: put the bot in stand-by mode and closely monitor the market to automatically resume trading when the trend is back to normal.

• Emergency distance: any value from 1 to 20, with a recommended setting of 5. The higher the distance setting, the higher the risk tolerance!

  • If the distance is set to 1, the Emergency Stop will be triggered as soon as the price drops by 1 step from the current lowest open bid, resulting in a more conservative approach.
  • Conversely, if the distance is set to 10, the Emergency Stop will only be triggered if the price drop by 10 times the current step, resulting in a much more aggressive approach.

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