Not every strategy fits every trader. The good news: DennTech gives you nine of them. Here is how to figure out which ones belong in your setup.
Strategy Is Personal
One of the most common mistakes new bot traders make is running the same strategy they read about in a forum post without considering whether it fits their risk tolerance, available capital, or preferred time horizon. A strategy that produces excellent results for a high-frequency scalper with a $50,000 account will behave very differently for a trend follower with $2,000 and a day job.
DennTech includes nine built-in strategies across every edition. Understanding what each one does — and when it thrives — is the starting point for any serious bot configuration.
The 9 Built-In Strategies Explained
1. RSI (Relative Strength Index)
Best for: Range-bound markets, moderate volatility.
RSI measures momentum on a 0–100 scale. The bot buys when RSI drops below an oversold threshold (default 30) and sells when it rises above an overbought threshold (default 70). This is the most accessible strategy for new users and performs well during sideways-trending conditions where price oscillates within a defined band.
Avoid when: Strong directional trends — RSI will generate false signals in a runaway bull or bear move.
2. MACD (Moving Average Convergence Divergence)
Best for: Medium-term trend confirmation, reducing false entries.
MACD tracks the relationship between two exponential moving averages. The strategy triggers on MACD line crossovers above or below the signal line. It is slower than RSI but filters out more noise, making it well suited for traders who prefer fewer, higher-conviction entries over high-frequency turnover.
Avoid when: Choppy, low-volume markets where crossovers generate excessive whipsaws.
3. Trend Following
Best for: Strong directional markets (bull or bear), longer holding periods.
Trend following is one of the oldest quantitative strategies in existence. The bot identifies the prevailing direction using moving average analysis and takes positions aligned with that direction. Losses are small and frequent; wins are large and infrequent. The asymmetry is the edge.
Best pairing: Combine with a momentum strategy for confirmation before entry.
4. Mean Reversion
Best for: High-volatility assets that exhibit strong reversion tendencies.
Mean reversion assumes that price deviations from a statistical mean are temporary. The bot identifies statistically significant deviations and takes contrarian positions, expecting price to revert. This strategy tends to be the inverse of trend following — it thrives when trend strategies struggle and struggles when trends are strong.
Pro tip: Run mean reversion and trend following simultaneously on separate assets to balance exposure across market regimes.
5. Scalping
Best for: High-liquidity pairs, tight spreads, active markets.
Scalping targets small, frequent profits by exploiting micro price movements. The bot opens and closes positions rapidly, often within minutes. Individually, each profit is small. Cumulatively, consistent execution adds up. This strategy has the highest trade frequency of any DennTech strategy and requires liquid pairs (BTC/USD, ETH/USD) with tight spreads to avoid slippage eroding returns.
Capital note: Scalping requires meaningful position sizing to produce material returns from small per-trade margins.
6. Grid Trading
Best for: Sideways markets with predictable range boundaries, stable assets.
Grid trading places buy and sell orders at regular price intervals above and below the current price, forming a "grid." As price oscillates, the bot automatically buys low and sells high within the grid bounds. This strategy is mechanical, passive, and highly effective in well-defined ranges. It requires minimal intervention once configured.
Risk: Grid strategies can accumulate significant unrealised losses if price breaks decisively out of the grid boundary. Always set a stop-loss boundary on grid configurations.
7. Momentum Trading
Best for: Breakout conditions, altcoin season, assets with strong catalysts.
Momentum trading identifies assets already moving with significant velocity and takes positions in the direction of that movement. The logic: assets in motion tend to stay in motion. This strategy performs best during altcoin season, Bitcoin breakouts, and sharp post-news moves. It is not well suited to low-volatility, sideways conditions.
8. Market Making
Best for: Experienced traders with larger accounts, exchange-listed assets with moderate spread.
Market making involves placing simultaneous bid and ask orders at slightly different prices to capture the spread. The bot acts as a liquidity provider and profits from the difference between the buy and sell price. This strategy is low-directional-risk but requires careful spread management and works best on pairs where the spread is meaningful but not excessive.
Capital requirement: Market making benefits significantly from larger position sizes. Returns on small accounts may be modest.
9. Arbitrage
Best for: Multi-exchange setups, tight execution windows, experience traders.
Arbitrage exploits price differences for the same asset across different trading pairs or market conditions. The bot identifies the discrepancy and executes coordinated trades to capture the spread. Arbitrage opportunities are usually small and fleeting, requiring fast execution and low latency connections to exchange APIs.
Note: DennTech supports Kraken, Binance.US, and Gemini, enabling cross-pair arbitrage between these venues.
Quick Decision Guide: Which Strategy Fits You?
| Your Profile | Recommended Strategy |
|---|---|
| New to bots, conservative risk tolerance | RSI, Grid Trading |
| Patient, wants fewer but higher-quality trades | MACD, Trend Following |
| High activity preference, good liquidity access | Scalping, Momentum |
| Sideways market environment | Grid Trading, Mean Reversion, RSI |
| Strong trending market | Trend Following, Momentum, MACD |
| Large account, income-focused | Market Making, Arbitrage |
| Want to diversify across all conditions | All-Strategy bundle (Retro or Elite) |
Running Multiple Strategies Together
DennTech allows multiple strategies to run concurrently on different trading pairs. A balanced multi-strategy portfolio — for example, RSI on BTC/USD, Grid on ETH/USD, and Trend Following on SOL/USD — spreads market-regime risk and reduces the chance that a single adverse condition kills your entire session.
This is exactly the design philosophy behind the Retro All-Strategies bundle and the Elite All-Strategy set: maximum coverage across every market condition.
Explore All Strategies in Detail
Every DennTech edition gives you control over which strategies are active, the pair each runs on, and individual risk parameters per strategy. Browse the full strategy list and individual bundle breakdowns on the Strategies page or explore the Retro, Themed, and Elite pricing pages to find the bundle that matches your strategy mix.