Understanding Sentrix Strategy Variables for Mid/Long Term Investments

Introduction

In this tutorial, we will explore how to configure the Sentrix Engine's alarm system to select the best possible trading strategy for mid/long-term investments. By carefully tuning parameters such as Earliness Rules, Drawdown Limits, and Auto Date Options, you can enhance your trading decisions to capitalize on trends with minimal risk. Additionally, we'll demonstrate how to apply combinatorial strategy scanning and optimize the strategy based on the insights gathered from multiple strategies running simultaneously.

1. Setting the Foundation: Understanding Sentrix Engine Variables

In the screenshot, we see multiple parameters that influence how the Sentrix Engine works for analyzing market conditions and sending alarms. Let’s break down these critical settings:

2. Time Zone and Date Format Options

Time Zone: This should be set according to your local time or the time zone of the exchange you are working with. In this example, it’s set to GMT +3.
Date Format Options: These control how the dates are displayed on your charts. You can adjust this based on your preference for daily or monthly views (d/m/y). This is especially useful for long-term investors who are tracking performance over several months or years.

3. Label/Text Options

Show Buy/Sell Texts: Ensure that this is checked, as it provides clarity regarding when and why specific buy or sell signals are triggered. This is crucial for making well-informed decisions.
Show STR Update Texts: This should also be checked so that you can stay updated when the system changes strategies dynamically based on performance. Sentrix will notify you if it finds a better-performing strategy.

4. Manual/Fixed Analysis Start Date

This setting allows you to determine how far back the Sentrix Engine should analyze historical data. For mid/long-term strategies:

Calculate Bars Back Date: Set to 500 bars. This ensures that the engine has enough historical data to detect trends and create long-term predictions.
From Day/Month/Year: Here, the date is set to 7/8/2023, indicating that the strategy is starting analysis from the 8th of July 2023. Adjust this as needed to reflect the duration of analysis that suits your investment horizon.

5. Auto/Updated Sliding Analysis Date

This option controls whether the Sentrix Engine will continuously update the analysis date. For long-term investments:

Auto Date Options: Set to 1.5 years. This tells Sentrix to analyze the past 1.5 years of data to base its trading decisions. It will continuously update this range as time progresses.
Apply Automated Sliding Date: Ensure this is checked to allow the date to shift automatically. This way, the strategy stays up-to-date with current market conditions.

6. Strategy Variables - Earliness, Drawdown, and STR Setting

Now, let’s focus on the Strategy Variables section, where you can tweak the behavior of Sentrix alarms for optimal performance:

Earliness Ruleset Option: This setting determines how early you want to catch signals. The value is set to 2, which strikes a balance between reacting early enough to capture a trend shift and avoiding too many false alarms due to market noise. A value of 2 is ideal for mid/long-term strategies because it catches early signs of trend shifts without reacting too quickly to short-term volatility.
Drawdown Limit: Set to 6.8%, this controls how much a position can lose from its peak before the alarm is triggered. Long-term traders often set a drawdown limit between 5% to 10% to allow for normal market fluctuations without prematurely closing a position. In this example, a drawdown limit of 6.8% is moderate and suitable for most long-term investments.
STRATEGY: The STR field is set to 431. This is a specific combinatorial strategy that Sentrix uses to maximize the probability of success. It scans for the most optimal strategy based on historical data, volatility, and winning probability.
Strategy Engine Toggle (Dynamic Strategy Updates): This checkbox enables Sentrix to automatically switch to better-performing strategies. When the system detects that another strategy is performing better based on backtested results, it will automatically update and apply the new strategy. This is crucial for mid/long-term investors who want to continuously improve their trading strategies without constant manual intervention.

7. Sentrix Engine's Multi-Strategy View: A Comparative Approach

In the provided screenshot, we can observe how multiple strategies are running simultaneously. This offers a unique advantage for long-term investors who wish to compare different strategies across various assets (BTC, ETH, BNB, XRP, etc.) before finalizing their alarms.

Multiple Strategy Monitoring: By running multiple strategies for different assets and comparing their win rates, drawdown limits, and trade statistics, you gain a broader perspective on which strategies perform best under varying market conditions. In this example:
- The BTCUSDT 12h strategy has a WIN % of 86.36 with 38 WIN TRADES.
- The ETHUSDT strategy has a WIN % of 90.54, making it an excellent option for long-term stability.
- Similar comparisons can be made for other assets, allowing you to select the most reliable strategies for your alarms.
Visualized Strategy Performance: By comparing each asset’s performance, you can identify trends, such as which strategies perform best in highly volatile markets versus stable ones. These insights are essential for fine-tuning your alarms.

8. Dynamic Strategy Adjustment & Combinatorial Scanning

The final piece of this tutorial is understanding how dynamic strategy adjustment works:

The dynamic strategy option automatically switches to a better-performing strategy when Sentrix detects one based on real-time combinatorial scanning. This ensures that your alarms are always based on the optimal strategy available at any given time.

How This Helps in Long-Term Investments:

Adaptive: The market can change quickly. A strategy that worked six months ago may no longer be valid. By allowing Sentrix to switch strategies dynamically, you ensure that your trading approach is always current.
Efficient: Instead of manually monitoring every strategy, Sentrix does the work for you, ensuring your alarms are always based on the best strategy.

Conclusion

By configuring these critical strategy variables in the Sentrix Engine, you can optimize your alarms for mid/long-term investments with confidence. These settings ensure that your trading decisions are based on long-term data analysis, robust risk management, and dynamic strategy updates.

To summarize the example for the BTCUSDT on Gate.IO on the TradingView enhanced Personalized Sentrix Dashboard:

Earliness Ruleset: Set to 2 for timely yet stable signal alerts.
Drawdown Limit: Set to 6.8% for risk management, giving your strategy enough room for market fluctuations.
Winning Strategy (STR): Use dynamic scanning with 431 to find the best strategy available.
Manual Analysis Date & Auto Update: set Auto Date to 1.5 years for continuous trend detection and then adjust to fixed date for alarm setting.
Dynamic Strategy Adjustment: Enable this feature for continuous optimization of alarms. Note that if this is set to 0, AUTO Strategy Update Mode becomes active.

By following this tutorial, you'll ensure that your Sentrix Engine alarms are finely tuned to the dynamics of mid/long-term trading, maximizing your returns while minimizing unnecessary risk.