Trend Defender Indicator

Trend Defender is an additional indicator for crypto trading bots that identifies the overall market phase and allows new positions to be opened only in the corresponding direction.

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Which trading bots support Trend Defender?

Trend Defender is available in the following trend-following bots on the platform:

• Cyberbot;
• TrendPal;
• Fast&Furious.

One of the key challenges for crypto trading bots is that they follow predefined trading algorithms and may not respond quickly enough to sudden crypto market trend reversals.

Trend Defender helps trading bots identify changes in market direction and adjust their trading activity accordingly. By preventing trend-following bots from opening positions against the prevailing market trend, the indicator helps reduce the number of losing trades and potentially improve overall trading performance.

You can also enable Trend Defender when creating a custom trading bot. The parameter is available under Advanced Strategy Settings.

How does Trend Defender identify the market trend?

Trend Defender analyzes Bitcoin price movements on the 1-hour timeframe (1H) and uses the collected data to determine the overall phase of the cryptocurrency market.

BTC is used as the leading market asset because, during periods of high Bitcoin dominance, its price movement can influence the overall direction of the crypto market.

If BTC dominance decreases significantly and other cryptocurrencies stop following Bitcoin’s price movement, it is recommended to temporarily disable Trend Defender.

The indicator is designed to identify the general market phase within a weekly period. It does not predict short-term intraday price movements and should not be used as an independent trading signal.

How does Trend Defender work?

Once the current market phase has been identified, Trend Defender prevents the trading bot from opening positions against the prevailing market direction.

Red phase: downward market trend

When Trend Defender detects a red phase:

• the bot stops opening new long positions;
• all open long positions are closed automatically;
• new short positions can still be opened.

The trading bot continues to open positions only in the direction of a declining market.

Green phase: upward market trend

When Trend Defender detects a green phase:

• the bot stops opening new short positions;
• all open short positions are closed automatically;
• new long positions can still be opened.

The trading bot continues to open positions only in the direction of a rising market.

Which trading strategies is Trend Defender suitable for?

Trend Defender may be suitable for:

• trend-following trading strategies;
• strategies without a built-in market trend indicator;
• medium-term strategies that keep positions open for one or several days.

Before enabling Trend Defender, make sure its logic is compatible with the entry and exit rules of your selected trading strategy.

When is Trend Defender not recommended?

Trend Defender may not be suitable for:

• intraday trading strategies;
• portfolio strategies;
• grid trading strategies;
• counter-trend strategies.

In these cases, the indicator may conflict with the original logic of the trading algorithm, close positions prematurely, or restrict entry points defined by the strategy.

Important information before activation

⚠️ Enable Trend Defender only if you:

1. Fully understand how the indicator works.
2. Have confirmed that it is compatible with your trading strategy.
3. Have tested it in demo mode and assessed its impact on the algorithm and trading results.

Enabling Trend Defender may result in the automatic closure of open positions and may significantly change the original logic of the trading bot.

How to enable Trend Defender in your trading bot settings

1. Click Add Strategy to create a custom bot, or open the Bot Control section.
2. Create a new trading bot or select an existing one.
3. Open Advanced Strategy Settings block.
4. Find the Trend Defender parameter.
5. Enable the indicator and save settings.
6. Launch the trading bot in demo mode.
7. Evaluate how the strategy performs during different market phases.
8. Switch to live trading only after completing your tests.

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Using trading bots, technical indicators, and additional filters does not eliminate financial risk. You are responsible for selecting your strategy settings and deciding whether to use them. Past performance of a trading algorithm does not guarantee similar results in the future.