Build a sector rotation system in Coinrule that shifts exposure as momentum changes. Automate entries, exits and rebalancing on Binance, Kraken, Bybit and OKX.
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Instead of holding the same tokens through every regime, a Sector rotation bot on Coinrule can reallocate when relative strength changes. Rotate 25% from DeFi to L1s when a 7-day return spread exceeds 6% and volume is up 20%.
Traders group assets into baskets like L1s, DeFi, AI, memes or majors, then compare each basket to a benchmark such as BTC or a stablecoin. You can score momentum with moving averages, rate of change, or simple performance windows. When leadership changes, the engine can shift size gradually to reduce whipsaws. Connect Binance, Coinbase, Bybit, OKX or KuCoin and manage everything from one dashboard. For more building blocks, see /automated-trading.
When rotations happen too often, fees and noise add up. Coinrule lets you add filters like minimum trend strength, cooldown timers and confirmation candles. A practical setup is: only rotate if the new sector leads for 3 consecutive 4-hour closes and the spread stays above 4%. You can also cap turnover, for example no more than two reallocations per day. This keeps the system systematic rather than reactive.
Rotation Triggers
Risk controls sit next to your triggers. Set max allocation per sector, a portfolio stop like -8% weekly, and a rule that reduces exposure by 30% if BTC drops 5% in 24 hours. Add a trailing take profit that tightens from 4% to 2% once a basket is up 12%. These constraints keep rotations from turning into uncontrolled chasing.
Execution Options
Choose spot for long-only rotation, or add perps for hedges when the market turns. On Hyperliquid or Bybit, you might hedge 20% notional when funding flips positive and price falls below MA200 on 4-hour candles. Coinrule logs every decision so you can audit why a switch happened and refine thresholds over time.
Sector Momentum Switcher
Ranks sector baskets by 7-day performance and switches to the leader. Confirms MA50 above MA200 on 4-hour candles. Moves to stablecoin when the leader closes below MA50.
Altcoin Rotation
Rotates between majors and alt baskets using strength vs BTC. Enters after 3 green 4-hour closes. Uses a 6% stop and a 10% take profit.
Portfolio Rebalance
Rebalances to target weights weekly or after 5% drift. Pauses during volatility spikes using an ATR filter. Keeps exposure aligned without constant trading.
Risk-On/Risk-Off Macro Switch
Moves risk-on when BTC is above MA200 and RSI is above 55. Switches defensive when RSI drops below 45. Adds a 24-hour cooldown to reduce churn.
Volatility Regime Switcher
Detects regime shifts with ATR expansion. Cuts position size 40% when ATR rises 30% week over week. Restores size when volatility normalizes.
Sector Momentum Switcher
Ranks sector baskets by 7-day performance and switches to the leader. Confirms MA50 above MA200 on 4-hour candles. Moves to stablecoin when the leader closes below MA50.
Altcoin Rotation
Rotates between majors and alt baskets using strength vs BTC. Enters after 3 green 4-hour closes. Uses a 6% stop and a 10% take profit.
Portfolio Rebalance
Rebalances to target weights weekly or after 5% drift. Pauses during volatility spikes using an ATR filter. Keeps exposure aligned without constant trading.
Risk-On/Risk-Off Macro Switch
Moves risk-on when BTC is above MA200 and RSI is above 55. Switches defensive when RSI drops below 45. Adds a 24-hour cooldown to reduce churn.
Volatility Regime Switcher
Detects regime shifts with ATR expansion. Cuts position size 40% when ATR rises 30% week over week. Restores size when volatility normalizes.
BTC Dominance Rotation
Rotates into alts when BTC dominance drops below a set level and price trends up. Shifts back to BTC when dominance rises and alts weaken. Scales in with two steps to smooth entries.
Bond-Equity Rotation Filter
Uses a cross-asset risk filter to avoid chasing during macro stress. Pauses rotations when the signal turns defensive. Resumes after two positive sessions.
Sharpe Targeting Rebalance
Targets steadier risk by adjusting weights using recent volatility. Rebalances weekly and caps any single asset at 20%. Helps keep drawdowns more controlled.
Minimum Variance Rebalance
Favors assets with smaller swings to reduce portfolio volatility. Rebalances on schedule and on 6% drift. Cuts exposure after sharp breaks with a stop rule.
High Beta Risk-On Basket
Allocates to high-beta tokens when trend and volume confirm. Enters above MA100 with volume 15% over average. Exits on the first close below MA50.
On Coinrule, your funds stay on your exchange accounts while the platform executes via API keys. Run the same rotation logic on Binance, Kraken, OKX, Bybit or Coinbase without rebuilding everything. Permissions are configurable, so you can restrict to trading only and disable withdrawals. This setup supports automation without giving up control.
Start by selecting a universe, such as 5 L1s, 5 DeFi tokens and 5 infrastructure names. Define how you score leadership, like 14-day return, MA crossovers, or a combined momentum and volume rank. Add sizing rules like 10% per asset with a 30% sector cap. Schedule checks every 4 hours so the system reacts without overtrading. Save versions so you can A/B test changes.
Set a switch rule: if Sector A outperforms Sector B by 5% over 7 days and RSI(1H) is above 50, rotate 20% of portfolio into Sector A. Add protection: if total equity drawdown hits 6% from the weekly high, move 50% to stablecoin and pause for 12 hours. Add confirmation: only execute if price is above MA100 on 4-hour candles and volume is above its 20-period average. These are simple, testable conditions you can refine.
Track turnover, average holding time and fee impact, not just headline returns. Coinrule shows how often rules fire and whether switches cluster during choppy periods. If churn is high, widen thresholds, add cooldowns, or require two timeframes to agree. You can also split orders into smaller chunks to reduce slippage on thinner pairs. The goal is repeatable execution, not constant activity.
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Rather than rotating into whatever just pumped, require confirmation and define what counts as a real trend. Keep your universe liquid and avoid tiny pairs where slippage dominates. Use stablecoin as a neutral parking spot when signals disagree. Limit how much can change in one rebalance. Small, repeatable steps beat dramatic flips.
For traders using perps, a light hedge can smooth equity during broad selloffs. Open a 15% notional short when price closes below MA200 on 4-hour candles and funding is positive. Close the hedge when price reclaims MA200 or when RSI rises above 55. Keep leverage modest and treat the hedge as insurance, not a new bet.
Frequent switching can create unnecessary costs. Reduce turnover by widening the leadership threshold, such as requiring a 6% spread instead of 2%. Rebalance on a schedule plus a drift trigger, not on every small change. Compare fee tiers across venues and choose pairs with tight spreads. Consistency improves when friction stays controlled.
Set alerts for unusual activity like three rotations in a day or a sudden jump in volatility. Use global pause controls during major news events if you prefer manual oversight. Keep separate rules for entries and risk exits so protection always has priority. Review the execution log weekly and adjust one parameter at a time. This is how systematic strategies mature.
Start with two baskets and a stablecoin option, then expand once behavior is predictable. Add position caps, correlation checks and a maximum number of open assets. If you manage multiple accounts, clone the same rule set and adjust sizing per account. Over time you can run a core rotation plus a small satellite strategy for opportunistic breakouts. The platform supports that layered approach.
Create your baskets, set the scoring rule, and add risk limits before you go live. Start small, monitor execution, and iterate with clear logs and thresholds. When you are happy with turnover and drawdowns, scale gradually across exchanges. Coinrule keeps the workflow simple while your rules stay precise.
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