Scalping Uniswap Dips On Uptrend - Ep 11

Uniswap Market Analysis

Looking back at our rules, we see that the strategy scalping Uniswap dips performed quite nicely. The rule was in profit for mainly the whole time it was running without intervention.

The rule was executed 16 times in one day, achieving a profit of $17 while paying a negligible fee. Uniswap had a lot of volatility on Wednesday and Thursday. In terms of the Uniswap price movement, we saw a trend reversal after the shoulders formed. The price action then moved into the form of a wedge consolidating before breaking on the upside.

This was then followed by a retest of the $4.4 support level and began a trend up. This was perfect for the strategy that we had in place that buys when the price increase then sells when it further increases, thus benefiting from UNI’s volatility.

The price is steadily trading within this range. This is positive in the short term for Altcoins as it provides room for coins to test their price ranges without the noise of Bitcoin.

The strategy

The rule for scalping Uniswap dips is meant to buy when the price of UNI increases by 0.9% in a timeframe of 15 minutes, and then sell if the price increases by 2% or decreases by 1%. A majority of the trades close in profit, netting a profit of $17 using only $50 as initial capital.

A key aspect of the strategy is the ratio between the take profit and stop loss, which is 2, which means that each trade should earn double the loss of a trade closed by the stop loss. This allows to tolerate more trades closed in loss as those in profit will more than compensate them.