Kinetic Inertia Short — Strategy by Volatryx

By Volatryx

Performance Metrics

Description

Kinetic Inertia Short (KIO+) This is a specialized short-selling strategy designed to capture downward momentum shifts. It is particularly effective for high-volatility assets like crypto and altcoins where momentum changes rapidly.Core Logic:The script applies physics-based concepts to price action:Velocity: Calculated as the Rate of Change (ROC) of the price.Acceleration: The difference in velocity over time, filtered through a Simple Moving Average (SMA).Kinetic Energy: Combines mass (Volume) with the squared velocity.A short setup is triggered when upward velocity stalls (velocity > 0), momentum starts to reverse (acceleration < 0), and kinetic energy drops below its moving average, confirming the exhaustion of the bullish push.Risk Management & Trading Rules:The strategy is backtested with a realistic $5,000 initial capital, allocating a fixed $100 per trade.It includes a dynamic Stop Loss based on the Average True Range (ATR) to adapt to market volatility.Take Profit is automatically calculated using a customizable Risk/Reward ratio (default is 1:2).Includes built-in inputs for custom JSON alerts, making it fully compatible with automated trading bots.

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