Documentation

Crypto investing, charting, trends, Gunbot, and tunables — so you can tune your bot with confidence.

Getting started

This documentation is for investors of all levels. We assume no prior knowledge: every important term and acronym is defined. You will learn how crypto markets work, how to read charts and trends, how Gunbot executes and what the tunables do, and how to align settings with your goals and risk tolerance.

Use the left navigation to jump to a topic and the table of contents on the right to move within the current page.

Glossary

Terms and acronyms

Use this section as a reference. Terms appear in the order you’ll need them.

• Cryptocurrency (crypto) — A digital asset secured by cryptography. Examples: Bitcoin (BTC), Ethereum (ETH).
• Bitcoin (BTC) — The first and largest cryptocurrency by market value.
• Altcoin — Any cryptocurrency other than Bitcoin (e.g. ETH, SOL).
• Exchange — A platform where you buy and sell crypto (e.g. Binance, Kraken). The bot places orders on the exchange on your behalf.
• Trading pair (pair) — Two assets traded against each other, e.g. BTC/USDT. The first is the base, the second the quote. Price is “how much quote per one base” (e.g. 1 BTC = 50,000 USDT).
• USDT, USDC, BUSD — Stablecoins: their value is pegged to one US dollar. Used as “quote” so you think in dollars.
• Spot market — You buy or sell the actual asset (not a derivative). The bot trades spot by default.
• Order book — List of buy and sell orders at different prices. Depth and spread affect execution quality.
• Liquidity — How easily you can trade without moving the price. High volume usually means better liquidity.
• Volume — Total amount traded in a period (e.g. 24h volume). Used in bot filters to avoid illiquid pairs.
• Volatility — How much price moves in a short time. High volatility = bigger swings, more risk and opportunity.
• Market cap (capitalization) — Price × circulating supply. Rough measure of “size” of an asset.
• Position — Your current holding in a pair (e.g. you bought 0.1 BTC). “Open position” = you still hold it.
• Cost basis (average buy price) — The average price you paid for your current position. Used to compute profit (current price − cost basis).
• Long — You profit when price goes up. Standard “buy low, sell high.” The bot goes long.
• DCA (Dollar-Cost Averaging) — Buying in multiple steps at different prices instead of one lump sum. If price drops after your first buy, later buys lower your average cost. The bot uses DCA when it places several buy orders at set intervals (e.g. every 2% down).
• Take-profit (TP) — A target: “sell when price is X% above my cost.” In the bot this is the GAIN (target profit %).
• Stop-loss (SL) — A limit: “sell if price falls X% from my cost (or from peak).” Limits loss. The bot has stop-related settings (e.g. stop-sell, trailing logic).
• Trailing stop — A moving stop that follows price up: you lock in profit as price rises, and sell if price reverses by a set % from the highest point. The bot’s trailMeSellRange is related to this idea.
• GAIN — In the bot: target profit percentage. When price is this much above your average buy price, the strategy may sell to take profit.
• Drawdown — How much your portfolio or a position falls from a peak (e.g. −20%). Higher risk strategies can mean larger drawdowns.
• Risk profile — A preset bundle of risk caps and strategy settings (e.g. Volatile vs Conservative). You choose or customize one to match your tolerance.
• Indicator / period — Technical indicators (e.g. RSI, MACD) are computed over a number of candles or bars; that number is the “period.” Short period = more reactive but noisier; long period = smoother but slower.
• RSI (Relative Strength Index) — Indicator 0–100. Below ~30 often “oversold”; above ~70 “overbought.” Used for momentum.
• MACD (Moving Average Convergence Divergence) — Compares two moving averages and their momentum. Used for trend and timing.
• EMA (Exponential Moving Average) — A moving average that weights recent prices more. Reacts faster than a simple average.
• SMA (Simple Moving Average) — Average of the last N prices. Smoother, slower.
• Support — A price level where buying tends to appear and price bounces up.
• Resistance — A price level where selling tends to appear and price stalls or drops.
• Trend — Direction of price over time: up (higher highs/lows), down (lower highs/lows), or sideways (range).
• Breakout — Price moving clearly past a support or resistance level, often with more volume.
• Hot Ride — A bot strategy that targets pairs with sustained momentum (trend). Uses medium/long-term indicators.
• Extreme Spike — A bot strategy that targets sharp, short moves (spikes). Often uses different filters and a different GAIN.

Crypto fundamentals

What is cryptocurrency and how markets work

Cryptocurrency is a digital asset that uses cryptography for security and runs on a distributed ledger (e.g. blockchain). Unlike a bank account, you can hold the “keys” yourself; trading happens on exchanges that match buyers and sellers. Prices move with supply and demand: more buying tends to push price up, more selling pushes it down. Because crypto markets are open 24/7 and can be very volatile, both opportunity and risk are high.

Exchanges and how the bot executes

The bot connects to your exchange via API (a secure link that allows it to place and cancel orders). It does not hold your funds; the exchange does. When the bot “buys” or “sells,” it submits orders to the exchange. Execution depends on liquidity: in liquid pairs, orders fill quickly near the quoted price; in illiquid ones, price can move (slippage). Bot filters (e.g. minimum volume) help avoid the worst slippage.

Risk and volatility

Crypto can swing 10–30% or more in a day. That means larger potential gains and larger potential losses. Your job when tuning the bot is to set risk caps (how much you put in, how many positions, how far you allow DCA to go) and strategy parameters (take-profit, trailing behavior, when to cut losses) so that outcomes match your tolerance and goals.

Investing in crypto

Basics

Investing in crypto means allocating capital to digital assets with the goal of growth or income. Unlike traditional markets, crypto trades 24/7, can be highly volatile, and requires you to understand exchanges, pairs, and execution. The bot automates buy and sell decisions based on your strategy and risk settings; your job is to set those settings so they match your goals and tolerance for drawdowns.

Capital and allocation

Only allocate capital you can afford to lose. Decide what fraction of your portfolio goes to crypto and what fraction of that goes to the bot. Use max investment and trading limit to cap how much is in play at once, and funds reserve to keep a buffer for DCA or new opportunities. Start small, observe how the bot behaves in different market conditions, then adjust one lever at a time.

Charting and technical analysis

What charts show: OHLCV and timeframes

A candlestick or bar shows four prices for a period: Open, High, Low, Close. V is volume (amount traded). Timeframe is the length of each candle (e.g. 1m, 5m, 1h, 1d). Short timeframes show more noise; longer ones show the bigger picture. The bot’s logic uses indicator periods that effectively “look back” over a number of such bars to decide trend and momentum.

Reading candlesticks: what each line and bar means

If you’re new to charts, think of each candlestick as a small “story” of what price did in one period (e.g. one hour or one day). The candle’s body, wicks, and color tell you that story. Below the candles you’ll see volume bars; on top you may see moving average lines. Here’s what each part means and how to interpret it.

The candlestick body

The body is the thick rectangular part of the candle. It shows the range between the open (price at the start of the period) and the close (price at the end).

• Bullish candle (often green or gold): Close is above open. The bottom of the body = open, the top = close. Buyers were in control: price moved up during the period.
• Bearish candle (often red): Close is below open. The top of the body = open, the bottom = close. Sellers were in control: price moved down during the period.

How to interpret: A long bullish body means strong buying: price opened low and closed high with little give-back. A long bearish body means strong selling. A small body (open and close are close together) means indecision: buyers and sellers fought to a draw.

The wicks (shadows)

The thin lines above and below the body are called wicks or shadows. They show the highest and lowest prices reached during the period, even if only briefly.

• Upper wick: From the top of the body to the high. Shows how far price went up before being pushed back down.
• Lower wick: From the bottom of the body to the low. Shows how far price went down before being pushed back up.

How to interpret: A long upper wick on a red candle means price tried to go higher but sellers pushed it back down — selling pressure. A long lower wick on a green candle means price dipped but buyers stepped in — buying support. Long wicks with a small body often signal reversals: the market tested a level and then rejected it.

Putting it together: open, high, low, close

• Open — Price when the period started.
• High — Highest price during the period (top of the upper wick).
• Low — Lowest price during the period (bottom of the lower wick).
• Close — Price when the period ended (edge of the body).

So: body = open-to-close range; wicks = how far price stretched above and below that range.

Volume bars (below the candles)

The vertical bars under the chart show volume — how much was traded in each period. Taller bar = more trading activity.

• Green volume bars usually mean more buying in that period (price went up).
• Red volume bars usually mean more selling (price went down).

How to interpret: Big price moves with high volume are more “real” — lots of people agreed. Big moves on low volume can reverse more easily. When price breaks a level with a spike in volume, the breakout is often more reliable.

Moving average lines (on the chart)

Moving averages are smoothed lines of past prices. They show the average price over the last N periods (e.g. 5, 10, or 20 candles).

• Faster line (e.g. MA5): Follows price closely; reacts quickly to new moves.
• Slower line (e.g. MA20): Smoother; shows the broader trend.

How to interpret: When price is above the moving average, short-term trend is often up; when price is below it, trend is often down. When the faster line crosses above the slower one, that’s often seen as a bullish signal; when it crosses below, a bearish signal. Use them as context, not as a single trigger.

Common candlestick patterns

Patterns are shapes formed by one or a few candles that traders often use as clues about what might happen next. None of them guarantee a move — they just suggest a possibility. Always consider context (trend, volume, support/resistance).

Doji

What it looks like: A very small body (open and close are almost the same), with wicks that can be long or short. Looks like a cross or a plus sign.

What it means: Buyers and sellers ended the period in a tie. Neither side won.

How to interpret: After a strong trend, a doji can signal exhaustion and a possible reversal. In the middle of a range it’s less meaningful. Look for dojis at support or resistance for a stronger signal.

Hammer (bullish)

What it looks like: A small body at the top of the candle and a long lower wick. Little or no upper wick. The body can be green or red.

What it means: Price sold off during the period (long drop), then buyers stepped in and pushed price back up to close near the open.

How to interpret: Often seen as a potential reversal after a downtrend: “sellers tried to push lower but buyers absorbed it.” Stronger when it appears at a support level or with higher volume.

Shooting star (bearish)

What it looks like: A small body at the bottom and a long upper wick. Little or no lower wick. Looks like an inverted hammer.

What it means: Price rallied during the period, then sellers pushed it back down to close near the open.

How to interpret: Often seen as a potential reversal after an uptrend: “buyers tried to push higher but sellers took over.” Stronger at resistance or with high volume.

Engulfing

What it looks like: Two candles. The second candle’s body completely “engulfs” the first — its body is larger and contains the first candle’s body. Bullish engulfing: first candle is red, second is green and wraps around it. Bearish engulfing: first candle is green, second is red and wraps around it.

What it means: The second period reversed the first with strong momentum. Bullish engulfing = strong buying after selling; bearish engulfing = strong selling after buying.

How to interpret: Often used as a reversal signal. Bullish engulfing at support or after a dip can suggest a bounce; bearish engulfing at resistance or after a rally can suggest a pullback. More reliable when the engulfing candle has a large body and good volume.

Long body (strong momentum)

What it looks like: A candle with a long body and short wicks (or no wicks). Green = strong up move; red = strong down move.

What it means: One side dominated: price moved in one direction and closed near the high (green) or low (red) of the period.

How to interpret: Indicates strong momentum in that direction. A series of long green candles in an uptrend suggests strong buying; long red candles in a downtrend suggest strong selling. Can also signal exhaustion if it appears after a long run (watch for a doji or reversal pattern next).

Small body with long wicks (indecision)

What it looks like: Small body in the middle, long wicks on both sides. Sometimes called a “spinning top.”

What it means: Price moved up and down during the period but closed near where it opened. Neither bulls nor bears won clearly.

How to interpret: Often marks a pause or turning point. After a strong trend, it can precede a reversal. In a range it just confirms sideways action. Use the next candle(s) and volume to confirm.

Summary: Candlestick patterns are a way to read market psychology (who had the upper hand, where they gave up). Use them together with trend, volume, and support/resistance — and never rely on a single candle or pattern alone.

Support, resistance, and trend lines

Support is a zone where price has repeatedly bounced up; resistance is where it has repeatedly stalled or dropped. Trend lines connect successive highs or lows to show direction. Breakouts above resistance or below support often lead to the next leg. The bot does not draw these by hand; it uses mathematical indicators (e.g. moving averages, RSI, MACD) that summarize price and volume to infer trend and strength.

Indicators the bot relies on: periods matter

The bot uses short-, medium-, and long-term “periods” for its internal calculations. Think of these as how many bars it looks back:

• Short period (e.g. 3–5) — Reacts quickly to new moves but can trigger on noise. Good for catching fast reversals; bad if you want to avoid false signals.
• Medium period (e.g. 20–40) — Balances speed and smoothness. Often used for trend confirmation.
• Long period (e.g. 60–180) — Very smooth, lags a lot. Used for “big picture” trend so the bot doesn’t flip on every wiggle.

When you set period, periodMedium, and periodLong in the bot, you are tuning how fast or slow the strategy reacts. Shorter = more trades, more sensitivity; longer = fewer trades, more stability.

Trends and market structure

Uptrend, downtrend, sideways

In an uptrend, price makes higher highs and higher lows; in a downtrend, lower highs and lower lows. Sideways (range) means price chops between support and resistance. The bot’s strategies are designed to participate in favorable moves: Hot Ride leans on sustained trends; Extreme Spike leans on short, sharp moves. Knowing whether the market is trending or ranging helps you pick which strategy to enable and how strict to set entry.

Why this matters for strategy choice

In a strong uptrend, trend-following (Hot Ride) and modest DCA can work well. In a downtrend, buying more (DCA) can increase loss if you set too many steps or too wide a spread; lower max buy count and higher DCA spread reduce that risk. Spike strategies (Extreme Spike) aim for quick moves; they often use different GAIN and volatility filters. Matching strategy and filters to the current market type improves the chance that the bot’s behavior fits reality.

Strategies: how they work and how the bot implements them

Dollar-cost averaging (DCA) in the bot

The bot can place multiple buy orders for the same pair. The first order opens the position; later orders “average down” if price drops. Two key settings:

• Max buy count — How many buy (DCA) orders are allowed per pair. Higher = more averaging, lower average cost in a dip, but more capital at risk if the trend stays down.
• DCA spread — The percentage distance between successive DCA orders (e.g. 2% means next buy 2% below the previous). Smaller spread = more buys in a small drop (faster averaging); larger spread = fewer buys, less risk of over-averaging in a crash.

In a falling market, a high max buy count with a tight DCA spread can use a lot of capital quickly. A moderate max buy count and a wider DCA spread keep risk more controlled.

Take-profit (GAIN) and trailing behavior

GAIN is your target profit %. When price is that far above your average buy price, the strategy may sell. Higher GAIN = fewer, bigger wins and longer holds; lower GAIN = more frequent, smaller wins. Trail (trailMeSellRange) lets the bot lock in profit by following price up and selling if price pulls back by that % from a high. So you get a target (GAIN) plus optional “trailing” to capture more of a run. Tuning GAIN and trail to your timeframe (scalp vs swing) and volatility is essential.

Entry conditions: strict vs loose

Strict entry means the bot only opens a position when several conditions are met (e.g. trend and momentum aligned). Fewer false entries, but fewer trades. Loose (non-strict) entry allows more trades; more opportunity and more noise. Conservative profiles often use strict entry; aggressive ones may use loose.

Safety timer and stop-sell

Safety timer — Minimum time the bot will hold a position before considering an exit. Helps avoid selling on tiny dips. Stop-sell — Logic to exit when loss or conditions exceed a threshold. Together with GAIN and trailing, these define “how long to wait” and “when to cut losses.”

Gunbot overview

What is Gunbot

Gunbot is the trading automation engine used at crypto.cutfinancial.com. It connects to your exchange via API (Application Programming Interface): a secure link that lets the bot place and cancel orders on your behalf. The bot does not hold your funds; the exchange does. Gunbot runs strategies (Hot Ride, Extreme Spike) that decide when to buy and sell based on price, volume, and technical indicators. You control behavior through risk profiles and tunables — caps and strategy parameters you set in the Custom / Settings UI.

Risk profiles

Risk profiles are presets that bundle risk caps and strategy parameters. The system offers six levels: Volatile, Aggressive, Balanced, Moderate, Conservative, and Custom. Volatile uses higher GAIN, more positions, more DCA steps, and shorter indicator periods; Conservative uses lower GAIN, fewer positions, fewer DCA steps, longer periods, and often strict entry. You can pick a preset or customize it and save as a custom profile.

Hot Ride vs Extreme Spike

Hot Ride targets pairs with sustained momentum (trend). It uses medium- and long-term indicators and filters (e.g. minimum volume, volatility range) to add liquid, moving pairs. Extreme Spike targets sharp, short moves (spikes); it may use different volume/volatility filters and a different GAIN. You can run Hot only, Extreme only, both (mixed), or neither (off). Use Hot in trending markets; use Extreme only if you understand spike risk and set appropriate caps and GAIN.

Using the tunables

The tunables are the individual settings that control risk caps, strategy logic, and strategy filters. Use the left nav and sections below as a reference when tuning the bot.

Risk caps (global)

Risk profiles (e.g. Volatile, Moderate, Conservative) are presets that bundle risk caps and strategy parameters. Rough guide:

• Volatile / aggressive — Higher GAIN, more positions, more DCA steps, shorter periods. Best for those who accept large drawdowns for higher potential return.
• Moderate — Balanced GAIN, position count, and DCA. Good default for many.
• Conservative — Lower GAIN, fewer positions, fewer DCA steps, longer periods, often strict entry. Prioritizes capital preservation and fewer, higher-conviction trades.

You can start from a preset and then adjust individual risk caps and strategy tunables to match your exact tolerance and market view.

• TRADING_LIMIT — Maximum number of open trades (positions) at once. Lower = less exposure; higher = more concurrent opportunities. Start conservative (e.g. 5–10).
• MAX_INVESTMENT — Maximum total capital (in quote) that can be invested in open positions. The bot will not open new buys if total invested would exceed this. Set to a fraction of your trading capital so you keep reserve for DCA.
• STOP_LIMIT — Stop-loss threshold (%). When price falls this much below entry, the bot may trigger a stop sell. Too tight = premature sells in normal volatility; too loose = larger loss per trade.
• MAX_BUY_COUNT — Maximum DCA (buy) orders per pair. Higher = more averaging, more capital at risk in a downtrend. Typical range 2–5.
• DCA_SPREAD — Percentage distance between successive DCA orders. Larger = fewer, more spaced buys; smaller = more frequent averaging. Balance with pair volatility.
• FUNDS_RESERVE — Percentage of quote balance to keep in reserve (not used for new orders). 10–20% is common. Higher = more flexibility, less capital in play.
• Capital % — When using multiple risk profiles, the percentage of total capital allocated to this profile. Ensure the sum across profiles does not exceed 100%.

Strategy tunables

• GAIN — Target profit percentage (take-profit). When price rises this much above average buy price, the strategy may sell. Too low = close winners early; too high = rarely trigger. Align with typical move size of your pairs.
• TRAIL_ME_SELL_RANGE — How far price can pull back from the high before triggering a trailing sell. Larger = more room for volatility; smaller = lock profit sooner but may exit on normal pullbacks.
• STRICT_ENTRY — When true, the bot uses stricter conditions before opening a position. Fewer false starts in choppy markets; use false when you want more aggressive entry.
• PERIOD — Short-term indicator period. Shorter = faster, noisier; longer = smoother, lag. Match to your timeframe (scalp vs swing).
• PERIOD_MEDIUM — Medium-term indicator period. Typically between PERIOD and PERIOD_LONG. Filters noise while staying responsive.
• PERIOD_LONG — Long-term indicator period. Reduces false signals but adds lag. Don’t set so large that signals become useless for your holding period.
• FIRST_ORDER_EXTRA_DELAY — Extra delay (e.g. seconds) before placing the first order for a new pair. Helps avoid FOMO entries right at signal trigger.
• TSSL_TARGET_ONLY — When true, exit logic focuses only on the take-profit target. Set true for straightforward take-profit behavior; false for more complex trailing/stop rules.
• SAFETY_TIMER — Minimum time (e.g. seconds) a position must be held before certain sells are allowed. Prevents whipsaws and excessive fees. Set high enough to absorb normal volatility.
• STOP_SELL — Stop-sell threshold or trigger level. Coordinates with STOP_LIMIT and trailing so you have a clear exit plan.

Hot Ride filters

These settings control which pairs are added and traded by the Hot Ride strategy.

• minVolume24h — Minimum 24h trading volume (quote) for a pair. Filters out illiquid pairs. Higher = more liquid, tighter spreads; too high = few pairs.
• maxSpreadPct — Maximum allowed spread (bid-ask as % of mid). Pairs with spread above this are excluded. Lower = better execution; loosen if few pairs pass.
• minVolatilityPct24h / maxVolatilityPct24h — Min/max 24h volatility for pairs. Ensures enough movement for the strategy without excessive risk.
• maxPairs — Maximum number of pairs Hot Ride can add and trade at once. Balance with TRADING_LIMIT and capital.
• schedule — Optional cron-like schedule when Hot Ride can add or trade pairs. Leave empty for 24/7.

Extreme Spike filters

Same idea as Hot Ride but for the Extreme Spike strategy. Often uses higher min volume and different volatility range. Spike trades can be short-lived; tight spread helps execution.

• minVolume24h, maxSpreadPct, minVolatilityPct24h, maxVolatilityPct24h, maxPairs, schedule — Same concepts as Hot Ride; tune for spike-style opportunities.
• GAIN / TRAIL_ME_SELL_RANGE override — Extreme Spike can use a different take-profit and trailing range than the global strategy. Set per strategy or leave empty to use global.