How it works

LWMR calculates a 20-period moving average and standard deviation of recent prices. When the price drops significantly below the mean (at least 1 standard deviation or 2%, whichever is greater), it triggers a buy — the idea being that prices tend to revert back to their average.

Entry signal

• Price falls below the mean by more than the dynamic threshold
• Threshold adapts to volatility — wider bands in choppy markets, tighter in calm ones

Exit signals

• SELL Price reverts back to the mean — profit taken
• SELL Take-profit target hit (default 8%)
• SELL Stop-loss triggered (default -10%)

Position management

• ADD If price drops 1.5x deeper than entry threshold, the bot adds to the position (up to 2 adds)
• Cooldown between adds prevents overcommitting

Best for

Calm, low-volatility markets Works best on tokens that trade in a predictable range. Steady grinders like MIN, INDY, or stablecoin-adjacent pairs.

How it works

BWR looks at the last 30 price candles to identify resistance levels. When price breaks above resistance and then pulls back slightly (the "retest"), it buys — confirming the breakout is real, not a fakeout. This is a classic technical analysis pattern used by professional traders.

Entry signal

• Recent high breaks above the resistance level from the last 25 candles (by at least 0.5%)
• Current price has pulled back from the high (retest) but stays above resistance
• All three conditions must be true simultaneously

Exit signals

• SELL Price falls 3% below the breakout level — breakout failed
• SELL Take-profit or stop-loss hit

Position management

• ADD If price climbs 2% above entry, the bot adds once — momentum confirmed
• Max 1 add per breakout trade

Best for

Trending markets with strong momentum Works on tokens making new highs — NIGHT during rally phases, SNEK during hype cycles, or any token breaking out of a consolidation range.

How it works

VBR uses Bollinger Bands — a channel drawn 2 standard deviations above and below a 20-period moving average. When price drops below the lower band, it's statistically oversold. The bot buys and waits for price to snap back toward the middle or upper band.

Entry signal

• Price drops below the lower Bollinger Band
• This means the token has moved more than 2 standard deviations from its recent average — an extreme move that often reverses

Exit signals

• SELL_HALF Price reaches the middle band — lock in partial profit
• SELL Price reaches the upper band — full exit at the other extreme
• SELL Take-profit or stop-loss hit

Position management

• SELL_HALF is unique to VBR — it sells 50% at the midline, letting the rest ride to the upper band
• ADD If price drops below the lower band again after entry, the bot adds up to 3 times
• This aggressive adding works because extreme band violations have high mean-reversion probability

Best for

Volatile, choppy markets Thrives when tokens are swinging wildly — HOSKY during meme cycles, or any token with large daily swings. The wider the bands, the bigger the opportunity.

How it works

LRM is a pure momentum strategy. It measures how much a token's price has moved over the last 3 and 5 candles. When both short-term and medium-term momentum are positive and strong enough, it buys — riding the wave of buying pressure. When momentum reverses, it exits quickly.

Entry signal

• 5-period momentum above +1% AND 3-period momentum above +0.5%
• Both timeframes must agree — this filters out noise and catches genuine moves

Exit signals

• SELL 5-period momentum drops below -1% — the trend has reversed
• SELL Take-profit or stop-loss hit

Position management

• ADD If momentum exceeds +2%, the bot adds to the position (up to 2 adds)
• This is the most aggressive strategy for riding strong moves
• Fast entry and exit — trades can last minutes to hours

Best for

Clearly trending markets The go-to strategy when a token is on a sustained run. Works on tokens with strong catalysts — project announcements, exchange listings, or market-wide rallies. Most active of all five strategies.

How it works

RRA doesn't just look at whether a token is going up — it asks whether it's going up faster than the rest of the market. It calculates a rotation score by weighting short-term (3-period) and long-term (10-period) momentum. Tokens with high relative strength get bought; those losing strength get sold.

Entry signal

• Rotation score exceeds the threshold (default 1.5)
• Score = 50% weight on 3-period momentum + 30% weight on 10-period momentum
• Short-term momentum must also be positive (no fading entries)

Exit signals

• SELL Rotation score drops below -0.75 — relative strength has faded
• SELL 5-period momentum drops below -2% — outright reversal
• SELL Take-profit or stop-loss hit

Position management

• No adds — RRA relies on picking the right token at the right time rather than averaging in
• Designed to work across the full token watchlist, comparing relative performance

Best for

Portfolio rotation across multiple tokens Excels when different tokens take turns leading the market. Rather than picking one winner, RRA systematically rotates into whichever token has the strongest relative momentum.

How it works

CPR is designed specifically for falling and bear markets, where the other strategies tend to lose money. Cardano DEXs have roughly 3% round-trip friction (1% buy slippage + 2% sell slippage), so CPR only enters at extreme oversold levels where the expected bounce is large enough to clear that cost. It requires four independent confirmations before buying — this makes it trade rarely, but with higher conviction.

Entry signal — ALL four must align

• Price below the 2.5-sigma Bollinger Band (extreme statistical oversold — well beyond the normal 2-sigma)
• RSI(14) below 30 (deeply oversold — panic selling detected)
• 3-period momentum is positive (the bounce has started — avoids catching falling knives)
• Price has dropped more than 4% from the 20-period high (confirms a real dip, not just noise)

Exit signals

• SELL Take-profit at 10% — clears the 3% friction with ~7% net profit
• SELL Stop-loss at 8% — limits damage to ~11% net loss after friction
• SELL 5-period momentum drops below -3% — the bounce has failed
• SELL RSI exceeds 65 — overbought, the bounce is exhausted

Position management

• No adds — CPR never averages down into capitulation events. One entry, one exit.
• The strategy trades infrequently by design. It may go days without a signal, waiting for genuine capitulation events.
• Needs roughly 61% win rate to break even given the asymmetric TP/SL after friction costs.

Best for

Bear and falling markets The only strategy designed to profit when most tokens are trending down. Targets sharp, panicked sell-offs that often produce a relief bounce. Most effective on tokens with enough volume to produce genuine capitulation events — SNEK, NIGHT, WMTX during broad market corrections.

The process

Every poll cycle (default 60 seconds), Posada evaluates all enabled strategies against each watched token. The strategies are checked in priority order: LWMR, BWR, VBR, LRM, RRA, CPR. The first strategy to produce a BUY signal for a given token wins.

Safety checks

• Maximum percentage per trade (default 25% of wallet)
• Maximum trades per hour (default 10) and per day (default 50)
• Daily drawdown protection — buys pause if the wallet drops more than 15% in a day
• Price divergence check — rejects trades if price moved more than 8% between signal and execution
• Minimum pool liquidity check — skips tokens with thin orderbooks
• Cooldown between trades on the same token (default 10 minutes)

Once in a position

Each position remembers which strategy opened it. Only that strategy manages the exit — take-profit, stop-loss, ADD, and SELL_HALF signals all come from the same strategy that entered. This prevents conflicting signals from different strategies fighting over the same position.

The guarantee

Posada evaluates exit signals on every open position, every cycle, unconditionally. This is a core safety principle: a bot that can buy but can't sell is useless.

What this means

• If you disable a strategy, positions opened by that strategy are still actively managed — the bot continues to evaluate take-profit, stop-loss, and all other exit conditions using the original strategy's logic
• If all your funds are invested and the USDM balance is zero, sell signals still fire normally
• If you switch from one strategy to another, old positions from the previous strategy are not orphaned — they keep being evaluated until they exit
• Each position uses the parameters you configured for its strategy — an LWMR position uses your LWMR take-profit and stop-loss settings, a CPR position uses your CPR settings

How it works technically

The exit engine runs as a separate evaluation pass before the entry/strategy routing. It scans all open positions, looks up which strategy opened each one, loads your configured parameters for that strategy, and calls that strategy's signal function. If the signal says SELL or SELL_HALF, the trade executes immediately. This happens regardless of which strategies are currently enabled in the dashboard.