KC Strategy Templates
Strategy Overview
Section titled “Strategy Overview”- KC Breakout + ADX — Trend-confirmed breakouts
- KC + RSI — Band touch + momentum
- KC Mean Reversion — Trade in ranging markets
Strategy 1: KC Breakout + ADX
Overview
Trade KC band breaks in trending markets.
When This Works Best
- Trending markets
- 4H to 1D
Algorithm Configuration
| Setting | Value |
|---|---|
| Type | BOTH |
| Position Size | 40% of equity (REL) |
| Order Type | MARKET |
| Timeout | COOLDOWN_ONLY, 3 bars |
Long Entry Conditions
| Group | Indicator | Signal | Threshold |
|---|---|---|---|
| Required | KC | price_above_upperBand | — |
| Required | ADX | adx_above_threshold | 25 |
Long Exit Conditions
| Setting | Value |
|---|---|
| Required | KC · price_below_lowerBand |
| Stop Loss | 5% (REL), trailing |
| Take Profit | 12% (REL) |
Short Entry Conditions
| Group | Indicator | Signal | Threshold |
|---|---|---|---|
| Required | KC | price_below_lowerBand | — |
| Required | ADX | adx_above_threshold | 25 |
Short Exit Conditions
| Setting | Value |
|---|---|
| Required | KC · price_above_upperBand |
| Stop Loss | 5% (REL), trailing |
| Take Profit | 12% (REL) |
Recommended Parameters
| Indicator | Parameter | Value | Notes |
|---|---|---|---|
| KC | Period | 20 bars | Standard |
| ADX | Threshold | 25 | Trend filter |
Strategy 2: KC + RSI Reversal
Overview
Trade KC band touches confirmed by RSI extremes in ranging markets.
When This Works Best
- Ranging markets
- 1H to 4H
Algorithm Configuration
| Setting | Value |
|---|---|
| Type | BOTH |
| Position Size | 30% of equity (REL) |
| Order Type | MARKET |
| Timeout | COOLDOWN_ONLY, 5 bars |
Long Entry Conditions
| Group | Indicator | Signal | Threshold |
|---|---|---|---|
| Required | KC | price_below_lowerBand | — |
| Required | RSI | rsi_below_threshold | 30 |
Long Exit Conditions
| Setting | Value |
|---|---|
| Required | RSI · rsi_above_threshold · 60 |
| Stop Loss | 4% (REL) |
| Take Profit | 8% (REL) |
Short Entry Conditions
| Group | Indicator | Signal | Threshold |
|---|---|---|---|
| Required | KC | price_above_upperBand | — |
| Required | RSI | rsi_above_threshold | 70 |
Short Exit Conditions
| Setting | Value |
|---|---|
| Required | RSI · rsi_below_threshold · 40 |
| Stop Loss | 4% (REL) |
| Take Profit | 8% (REL) |
Recommended Parameters
| Indicator | Parameter | Value | Notes |
|---|---|---|---|
| KC | Period | 20 bars | Standard |
| RSI | Period | 14 | Momentum |
Strategy 3: KC Mean Reversion
Overview
Trade reversals at KC bands when market is ranging (ADX < 20).
When This Works Best
- Ranging/sideways markets
- 1H to 4H
Algorithm Configuration
| Setting | Value |
|---|---|
| Type | BOTH |
| Position Size | 30% of equity (REL) |
| Order Type | MARKET |
| Timeout | COOLDOWN_ONLY, 5 bars |
Long Entry Conditions
| Group | Indicator | Signal | Threshold |
|---|---|---|---|
| Required | KC | price_below_lowerBand | — |
| Required | ADX | adx_below_threshold | 20 |
Long Exit Conditions
| Setting | Value |
|---|---|
| Required | KC · price_above_upperBand |
| Stop Loss | 3% (REL) |
| Take Profit | 6% (REL) |
Short Entry Conditions
| Group | Indicator | Signal | Threshold |
|---|---|---|---|
| Required | KC | price_above_upperBand | — |
| Required | ADX | adx_below_threshold | 20 |
Short Exit Conditions
| Setting | Value |
|---|---|
| Required | KC · price_below_lowerBand |
| Stop Loss | 3% (REL) |
| Take Profit | 6% (REL) |
Recommended Parameters
| Indicator | Parameter | Value | Notes |
|---|---|---|---|
| KC | Period | 20 bars | Standard |
| ADX | Threshold | 20 | Range filter |
Backtesting Recommendations
Section titled “Backtesting Recommendations”- Test KC period: Find the lookback that captures meaningful breakouts
- Compare KC with BB: See which provides better signals for your asset