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Advanced strategy builder

Create custom algorithmic trading strategies using natural language or technical indicators with automated execution, backtesting, and risk management.

What is the advanced strategy builder?​

The advanced strategy builder is an AI-powered tool that transforms your trading ideas into automated strategies. Describe your strategy in plain English, and the system converts it into executable trading logic with technical indicators, entry/exit conditions, and risk parameters.

Key benefits:

  • Natural language input: Describe strategies in plain English
  • AI-powered parsing: Automatically converts descriptions to technical configurations
  • 12 technical indicators: SMA, EMA, RSI, MACD, Bollinger Bands, ATR, and more
  • Backtesting: Test strategies on historical data before deploying
  • Automated execution: 24/7 strategy monitoring and trade execution
  • Risk management: Built-in stop loss, take profit, and position sizing
  • Multi-DEX support: Execute on Hyperliquid, Aster, or Lighter

How it works​

1. Describe your strategy​

Write your trading strategy in natural language, including:

  • Symbol: Which asset to trade (BTC, ETH, SOL, etc.)
  • Timeframe: Candle interval (5m, 1h, 4h, 1d)
  • Indicators: Technical indicators to use (EMA, RSI, MACD, etc.)
  • Entry Conditions: When to open positions
  • Exit Conditions: When to close positions
  • Risk Parameters: Stop loss, take profit, leverage, budget

Example:

Trade BTC on 4h timeframe with 3x leverage and $500 budget. 
Buy when 20 EMA crosses above 50 EMA and RSI greater than 50. 
Sell when 20 EMA crosses below 50 EMA. 
Use 10% stop loss, 10% take profit, and max 5 trades per day.

2. AI parses your strategy​

The AI system:

  1. Extracts parameters from your description
  2. Identifies indicators and their configurations
  3. Converts conditions to technical logic
  4. Classifies strategy type (trend following, mean reversion, etc.)
  5. Applies defaults for unspecified parameters
  6. Validates configuration against market constraints

3. Review and customize​

After parsing, you can:

  • Review the generated configuration
  • Adjust parameters manually if needed
  • Backtest the strategy on historical data
  • Validate against your account balance and market limits

4. Deploy and monitor​

Once satisfied:

  1. Save as draft ($1.00 USDC fee charged from your Hyperliquid perp account)
  2. Deploy strategy to activate automated trading ($10.00 USDC deployment fee)
  3. Monitor performance in real-time
  4. Adjust or pause anytime

Strategy types​

The system automatically classifies your strategy into one of these types:

Trend following​

Captures sustained price movements in one direction.

Typical indicators: EMA, SMA, MACD, ADX Entry: Price crosses above moving average, MACD bullish crossover Exit: Price crosses below moving average, MACD bearish crossover

Mean reversion​

Profits from price returning to average after extremes.

Typical indicators: RSI, Bollinger Bands, MFI Entry: RSI oversold (less than 30), price touches lower Bollinger Band Exit: RSI overbought (more than 70), price touches upper Bollinger Band

Breakout​

Captures strong moves when price breaks key levels.

Typical indicators: Bollinger Bands, ATR, Volume Entry: Price breaks above resistance with high volume Exit: Price falls back below breakout level

Momentum​

Rides strong directional moves with confirmation.

Typical indicators: RSI, MACD, Stochastic Entry: Multiple momentum indicators align bullish Exit: Momentum indicators diverge or reverse

Scalping​

Very short-term trades capturing small price movements.

Typical indicators: EMA (short periods), RSI, MACD Timeframe: 5m or 1h Entry/Exit: Quick entries and exits based on fast indicators

Volatility​

Profits from expanding or contracting volatility.

Typical indicators: ATR, Bollinger Bands Entry: Volatility expansion (ATR rising, BB widening) Exit: Volatility contraction or profit target

Confluence​

Combines 4+ diverse indicators for high-confidence signals.

Requirements: At least 4 different indicator types Entry: Multiple indicators align (e.g., EMA cross + RSI greater than 50 + MACD bullish + ATR rising) Exit: Indicators diverge or reverse

Custom​

Strategies that don't fit standard classifications.

Supported indicators​

Moving averages​

  • SMA (Simple Moving Average): Average price over N periods

    • Parameters: period (2-200)
    • Use: Trend identification, support/resistance

  • EMA (Exponential Moving Average): Weighted average favoring recent prices

    • Parameters: period (2-200)
    • Use: Faster trend signals than SMA

Oscillators​

  • RSI (Relative Strength Index): Measures overbought/oversold conditions

    • Parameters: period (2-50, typically 14)
    • Range: 0-100 (more than 70 overbought, less than 30 oversold)

  • MACD (Moving Average Convergence Divergence): Trend and momentum indicator

    • Parameters: fastPeriod, slowPeriod, signalPeriod
    • Components: MACD line, signal line, histogram

  • Stochastic: Compares closing price to price range

    • Parameters: kPeriod, dPeriod
    • Range: 0-100 (more than 80 overbought, less than 20 oversold)

Volatility indicators​

  • Bollinger Bands (BB): Price envelope based on standard deviation

    • Parameters: period (2-200), stdDev (1-5, typically 2)
    • Components: Upper band, middle band (SMA), lower band

  • ATR (Average True Range): Measures market volatility

    • Parameters: period (2-50, typically 14)
    • Use: Volatility measurement, stop loss placement

Advanced indicators​

  • Ichimoku Cloud: Full trend and support/resistance system

    • Parameters: conversionPeriod, basePeriod, spanPeriod, displacement
    • Components: Multiple lines and cloud

  • ADX (Average Directional Index): Trend strength indicator

    • Parameters: period (2-50, typically 14)
    • Range: 0-100 (more than 25 strong trend, less than 20 weak trend)

  • MFI (Money Flow Index): Volume-weighted RSI

    • Parameters: period (2-50, typically 14)
    • Range: 0-100 (more than 80 overbought, less than 20 oversold)

Specialized indicators​

  • Percent B: Position within Bollinger Bands

    • Parameters: period, stdDev
    • Range: 0-1 (more than 1 above upper band, less than 0 below lower band)

  • DPO (Detrended Price Oscillator): Removes trend to show cycles

    • Parameters: period (2-200, typically 20)
    • Use: Cycle identification

Entry and exit conditions​

Condition types​

Indicator crossover​

One indicator crosses above or below another.

Operators: crosses_above, crosses_below

Examples:

  • 20 EMA crosses above 50 EMA (bullish signal)
  • MACD crosses below signal line (bearish signal)

Indicator threshold​

Indicator value compared to a fixed number.

Operators: greater than, less than, greater than or equal, less than or equal, equals

Examples:

  • RSI greater than 50 (bullish momentum)
  • ATR greater than 2.5 (high volatility)

Price vs indicator​

Current price compared to indicator value.

Examples:

  • Price greater than 20 EMA (above moving average)
  • Price less than lower Bollinger Band (oversold)

Price movement​

Price change over time.

Types:

  • price_rise_percentage: Price rose X% over N periods
  • price_drop_percentage: Price dropped X% over N periods

Examples:

  • Price rose 5% in last 10 candles
  • Price dropped 3% from recent high

Combining conditions​

Use AND or OR operators to combine multiple conditions:

AND (all must be true):

Entry: 20 EMA crosses above 50 EMA AND RSI greater than 50 AND MACD greater than 0

OR (any can be true):

Exit: RSI greater than 70 OR Price greater than take profit OR Stop loss hit

Risk management​

Stop loss​

Automatically close positions to limit losses.

Types:

  • Percentage: Close at X% loss from entry (e.g., 10%)
  • ATR-based: Close at N × ATR below entry (dynamic)
  • Fixed: Close at specific price level

Default: 10% if not specified

Take profit​

Automatically close positions to lock in gains.

Types:

  • Percentage: Close at X% profit from entry (e.g., 10%)
  • Fixed: Close at specific price level

Default: 10% if not specified

Position sizing​

Control how much capital to risk per trade.

Allocated budget: Total capital allocated to the strategy Leverage: Multiplier for position size (1x-50x, subject to market limits)

Formula:

Position Size = (Allocated Budget × Leverage) / Entry Price

Max daily trades​

Limit the number of trades executed per day to prevent overtrading.

Default: 5 trades per day Range: 1-100

Default values​

If you don't specify certain parameters, the system uses these defaults:

ParameterDefault Value
SymbolBTC
Timeframe1h
Leverage1x (no leverage)
Budget$100
Stop Loss10%
Take Profit10%
Max Daily Trades5

Supported symbols​

The system supports 20 perpetual futures symbols:

Major Assets: BTC, ETH, BNB, SOL, AVAX, LINK, UNI, AXS

Altcoins: HYPE, XMR, XRP, ADA, LTC, DOGE, PAXG, SUI, ATOM, LIT, ZEC, ASTER

Each symbol has different maximum leverage limits based on the exchange and market conditions.

Backtesting​

Test your strategy on historical data before deploying with real money.

How backtesting works​

  1. Historical data: Fetches OHLCV candles for your symbol and timeframe
  2. Signal generation: Runs your strategy logic on historical data
  3. Trade simulation: Simulates order execution with realistic fees and slippage
  4. Performance metrics: Calculates full statistics

Backtest metrics​

Profitability:

  • Total return (%)
  • Net profit/loss ($)
  • Win rate (%)
  • Profit factor (gross profit / gross loss)

Risk metrics:

  • Maximum drawdown (%)
  • Sharpe ratio (risk-adjusted returns)
  • Average win vs average loss
  • Largest winning/losing trade

Trade statistics:

  • Total trades executed
  • Winning trades
  • Losing trades
  • Average trade duration
  • Average profit per trade

Equity curve:

  • Visual representation of account balance over time
  • Drawdown periods highlighted
  • Trade markers showing entries and exits

Backtest configuration​

Date range: Choose start and end dates for historical testing Initial capital: Starting account balance (default: $10,000) Trading fees: Hyperliquid taker fee (0.045%) applied to all trades

Interpreting results​

Good strategy indicators:

  • Win rate more than 50%
  • Profit factor more than 1.5
  • Maximum drawdown less than 20%
  • Sharpe ratio more than 1.0
  • Consistent equity curve growth

Warning signs:

  • Win rate less than 40%
  • Profit factor less than 1.0
  • Maximum drawdown more than 30%
  • Sharpe ratio less than 0.5
  • Erratic equity curve with large drawdowns

Strategy execution​

How strategies execute​

Once deployed, your strategy runs automatically:

  1. Market data monitoring: System fetches latest candles at your specified timeframe
  2. Indicator calculation: Computes all configured indicators on current data
  3. Signal generation: Evaluates entry/exit conditions
  4. Order execution: Places market orders when signals trigger
  5. Position management: Monitors positions and manages stop loss/take profit

Execution frequency​

Strategies check for signals at the end of each candle based on your timeframe:

  • 5m timeframe: Checks every 5 minutes
  • 1h timeframe: Checks every hour
  • 4h timeframe: Checks every 4 hours
  • 1d timeframe: Checks once per day

Stop loss and take profit​

After entering a position, the system:

  1. Calculates TP/SL levels: Based on entry price and your percentages
  2. Places TP/SL orders: Limit orders at calculated levels
  3. Monitors position: Updates orders if position changes
  4. Executes exit: Closes position when TP or SL is hit

Update frequency: TP/SL orders are checked and updated every minute.

Position tracking​

The system tracks:

  • Current position size and side (long/short)
  • Entry price and timestamp
  • Unrealized profit/loss
  • TP/SL order status
  • Strategy execution history

Strategy lifecycle​

1. Draft​

Drafts require a $1.00 USDC fee (charged from your Hyperliquid perp account). Up to 100 drafts allowed.

Actions available:

  • Edit configuration
  • Run backtests
  • Delete draft

Fee: $1.00 USDC per draft creation

2. Active​

Strategy is deployed and executing trades.

Actions available:

  • Pause/resume execution
  • View performance metrics
  • View trade history
  • Deactivate strategy

Limitations:

  • Cannot edit active strategy (must deactivate first)
  • Budget is locked while active

3. Inactive​

Strategy is stopped but configuration preserved.

Actions available:

  • Reactivate
  • Edit configuration
  • Delete strategy
  • View historical performance

Best practices​

Strategy design​

Start simple:

  • Begin with 2-3 indicators
  • Use clear entry/exit rules
  • Test one strategy type at a time

Avoid over-optimization:

  • Don't curve-fit to historical data
  • Use reasonable indicator periods
  • Keep conditions straightforward

Risk management:

  • Never risk more than 2-5% per trade
  • Use appropriate stop losses
  • Set realistic take profit targets

Backtesting​

Use sufficient data:

  • Test on at least 3-6 months of data
  • Include different market conditions (trending, ranging, volatile)
  • Verify results across multiple timeframes

Be realistic:

  • Account for trading fees
  • Expect slippage on execution
  • Don't expect backtest results to match live trading exactly

Iterate and improve:

  • Test multiple variations
  • Compare different indicator combinations
  • Refine based on results

Live trading​

Start small:

  • Begin with minimum budget
  • Use 1x leverage initially
  • Monitor first few trades closely

Monitor performance:

  • Check daily for first week
  • Review weekly thereafter
  • Adjust if performance deviates from backtest

Know when to stop:

  • Pause if drawdown exceeds 15%
  • Deactivate if strategy stops working
  • Don't chase losses by increasing leverage

Limitations​

Technical limitations​

Timeframes: Only 5m, 1h, 4h, and 1d are supported Indicators: Maximum 10 indicators per strategy Symbols: Limited to 20 supported perpetual futures Leverage: Subject to exchange limits (typically 1x-50x)

Execution limitations​

Signal delay: Strategies execute at candle close, not mid-candle Market orders: All entries/exits use market orders (no limit orders) Slippage: Execution price may differ from signal price Fees: Trading fees reduce profitability (0.045% on Hyperliquid)

Strategy limitations​

No hedging: Cannot hold long and short positions simultaneously One position: Only one position per strategy at a time No partial exits: Positions close completely (no scaling out) No trailing stops: Stop loss is fixed percentage, not trailing

Getting started​

Ready to build your first strategy?

  1. Creating Strategies - Step-by-step guide to building strategies
  2. Backtesting Strategies - Test your strategy on historical data
  3. Deploying Strategies - Activate automated trading
  4. Monitoring Performance - Track and optimize your strategies

Support​

Need help with the Strategy Builder?