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Creating Strategies

Step-by-step guide to creating your first automated trading strategy using natural language or technical indicators.

Before you start​

Requirements:

  • Active B3X AI Navigator account
  • Connected wallet with funds
  • Basic understanding of technical indicators (recommended)

Recommended preparation:

Step 1: Navigate to Strategy Builder​

  1. Log in to B3X AI Navigator
  2. Click Strategy Builder in the navigation menu
  3. Click Create New Strategy button

Step 2: Describe your strategy​

In the strategy description field, write your trading idea in plain English. Be specific about:

Required information:

  • Symbol (e.g., BTC, ETH, SOL)
  • Timeframe (5m, 1h, 4h, 1d)
  • Indicators to use
  • Entry conditions
  • Exit conditions

Optional information:

  • Leverage (default: 1x)
  • Budget (default: $100)
  • Stop loss percentage (default: 10%)
  • Take profit percentage (default: 10%)
  • Max daily trades (default: 5)

Example descriptions:

Simple trend following:

Trade BTC on 1h timeframe. Buy when 20 EMA crosses above 50 EMA. 
Sell when 20 EMA crosses below 50 EMA. Use 10% stop loss and 10% take profit.

Mean reversion with RSI:

Trade ETH on 4h timeframe with 2x leverage and $500 budget. 
Buy when RSI drops below 30 and price touches lower Bollinger Band. 
Sell when RSI rises above 70. Use 5% stop loss, 15% take profit, max 3 trades per day.

Momentum strategy:

Trade SOL on 1h timeframe with 3x leverage. Buy when RSI > 50, MACD crosses above signal line, 
and 20 EMA > 50 EMA. Sell when RSI < 50 or MACD crosses below signal line. 
Use 10% stop loss and 10% take profit.

Breakout strategy:

Trade BTC on 4h timeframe. Buy when price breaks above upper Bollinger Band with ATR > 2.0. 
Sell when price falls back below middle Bollinger Band. Use 8% stop loss, 12% take profit.

Step 3: Parse with AI​

  1. Click Parse Strategy button
  2. Wait 2-5 seconds for AI processing
  3. Review the generated configuration

The AI will:

  • Extract all parameters from your description
  • Configure indicators with appropriate settings
  • Convert conditions to technical logic
  • Apply default values for unspecified parameters
  • Classify your strategy type

Step 4: Review configuration​

Check the generated configuration carefully:

Verify parameters:

  • Symbol is correct
  • Timeframe matches your intent
  • Leverage is appropriate for your risk tolerance
  • Budget doesn't exceed your available balance

Check indicators:

  • All mentioned indicators are included
  • Indicator periods make sense (e.g., EMA 20, RSI 14)
  • No duplicate or unnecessary indicators

Validate conditions:

  • Entry conditions match your description
  • Exit conditions are logical
  • AND/OR operators are correct

Review risk settings:

  • Stop loss percentage is acceptable
  • Take profit target is realistic
  • Max daily trades prevents overtrading

Step 5: Adjust if needed​

If the AI misunderstood something:

  1. Click Edit Description
  2. Clarify or add more details
  3. Click Parse Strategy again

Or manually adjust the configuration:

  1. Click Advanced Editor (if available)
  2. Modify parameters directly
  3. Save changes

Step 6: Validate strategy​

  1. Click Validate button

  2. System checks:

    • Symbol is supported
    • Leverage doesn't exceed market limits
    • Budget doesn't exceed your balance
    • All indicators are configured correctly
    • Conditions reference valid indicators

  3. Fix any validation errors shown

Step 7: Save as draft​

  1. Click Save Draft button
  2. Review the $1.00 USDC fee (charged from your Hyperliquid perp account)
  3. Enter a memorable strategy name
  4. Click Confirm

Your strategy is now saved as a draft. A $1.00 USDC fee is charged from your Hyperliquid perpetual account.

Method 2: Manual configuration​

For advanced users who want precise control.

Step 1: Create blank strategy​

  1. Navigate to Strategy Builder
  2. Click Create New Strategy
  3. Select Manual Configuration tab

Step 2: Set basic parameters​

Market settings:

  • Symbol: Choose from 20 supported symbols
  • Timeframe: Select 5m, 1h, 4h, or 1d
  • Leverage: Set 1x-50x (subject to market limits)
  • Budget: Allocate capital for this strategy

Strategy metadata:

  • Name: Descriptive name (3-100 characters)
  • Description: What the strategy does (10-500 characters)
  • Type: Select strategy classification

Step 3: Add indicators​

  1. Click Add Indicator button
  2. Select indicator type (SMA, EMA, RSI, etc.)
  3. Configure parameters:

Moving averages (SMA/EMA):

  • Period: 2-200 (common: 20, 50, 200)

RSI:

  • Period: 2-50 (common: 14)

MACD:

  • Fast period: typically 12
  • Slow period: typically 26
  • Signal period: typically 9

Bollinger Bands:

  • Period: 2-200 (common: 20)
  • Standard deviation: 1-5 (common: 2)

ATR:

  • Period: 2-50 (common: 14)
  1. Assign unique ID to each indicator (e.g., "ema_20", "rsi_14")
  2. Repeat for all needed indicators (max 10)

Step 4: Define entry conditions​

  1. Click Add Entry Condition
  2. Choose condition type:

Indicator crossover:

  • Left: First indicator ID
  • Operator: crosses_above or crosses_below
  • Right: Second indicator ID

Indicator threshold:

  • Left: Indicator ID
  • Operator: greater than, less than, greater than or equal, less than or equal, equals
  • Right: Numeric value

Price vs indicator:

  • Left: "price"
  • Operator: greater than, less than, greater than or equal, less than or equal
  • Right: Indicator ID
  1. Add multiple conditions if needed
  2. Set operator (AND/OR) to combine conditions

Step 5: Define exit conditions​

Same process as entry conditions, but for closing positions.

Common exit patterns:

  • Opposite of entry signal
  • Profit target reached
  • Stop loss triggered
  • Indicator reversal

Step 6: Configure risk management​

Stop loss:

  • Type: Percentage, ATR-based, or fixed
  • Value: Percentage or multiplier

Take profit:

  • Type: Percentage or fixed
  • Value: Percentage or price level

Position limits:

  • Max daily trades: 1-100

Step 7: Validate and save​

  1. Click Validate Configuration
  2. Fix any errors
  3. Click Save Draft
  4. Name your strategy

Common mistakes to avoid​

Overly complex strategies​

Problem: Using 8-10 indicators with many conditions

Solution: Start with 2-3 indicators and simple logic

Why: Complex strategies often underperform and are harder to debug

Unrealistic parameters​

Problem: 50x leverage with 1% stop loss

Solution: Use conservative leverage (1x-5x) with appropriate stops (5-10%)

Why: High leverage amplifies losses; tight stops get triggered by normal volatility

Contradictory conditions​

Problem: Entry requires RSI > 70 AND RSI < 30

Solution: Review logic carefully; use OR for alternative conditions

Why: Impossible conditions mean strategy never trades

Missing exit strategy​

Problem: Clear entry rules but vague exit conditions

Solution: Define specific exit rules as clear as entry rules

Why: Exit timing is as important as entry for profitability

Ignoring timeframe​

Problem: Using 5m indicators on 1d timeframe

Solution: Match indicator periods to timeframe (shorter periods for shorter timeframes)

Why: Indicator responsiveness should match trading frequency

Tips for better strategies​

Start simple​

Begin with proven patterns:

  • EMA crossover (20/50)
  • RSI mean reversion (30/70)
  • Bollinger Band bounces

Test and understand these before adding complexity.

Use appropriate timeframes​

5m timeframe:

  • For scalping strategies
  • Requires constant monitoring
  • Higher trading frequency
  • More sensitive to noise

1h timeframe:

  • Balanced approach
  • Good for trend following
  • Moderate trading frequency
  • Filters out some noise

4h timeframe:

  • For swing trading
  • Less frequent trades
  • Stronger signals
  • Better for part-time traders

1d timeframe:

  • For position trading
  • Very infrequent trades
  • Strongest signals
  • Minimal monitoring needed

Combine complementary indicators​

Good combinations:

  • Trend + Momentum: EMA + RSI
  • Trend + Volatility: EMA + Bollinger Bands
  • Momentum + Volatility: RSI + ATR
  • Multiple confirmations: EMA + MACD + RSI

Avoid redundancy:

  • Don't use SMA and EMA with same period
  • Don't use multiple oscillators that correlate (RSI + Stochastic + MFI)

Test before deploying​

Always backtest your strategy:

  1. Use at least 3-6 months of data
  2. Check performance in different market conditions
  3. Verify win rate > 40%
  4. Ensure profit factor > 1.0
  5. Review maximum drawdown

Next steps​

After creating your strategy:

  1. Backtest - Test on historical data
  2. Deploy - Activate automated trading
  3. Monitor - Track performance and optimize

Support​

Need help creating strategies?