Hyperliquid Trading Agent

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Trend Following ​

A patient trend-following strategy that captures sustained directional moves in crypto perpetual futures.

Visual Overview ​

Key Concept: Ride established trends by entering on pullbacks to moving averages, hold until trend reverses.

Strategy Logic ​

Overview ​

Identifies and rides established trends using multiple timeframe confirmation. Enters on pullbacks within the trend and holds for extended periods.

Entry Conditions ​

  • Price above/below key moving averages (50, 200 EMA)
  • Higher highs and higher lows (uptrend) or lower lows and lower highs (downtrend)
  • Momentum confirmation (RSI, MACD alignment)
  • Entry on pullback to support/resistance
  • Volume confirmation on breakout

Position Sizing ​

  • Base size: 2-3% of portfolio
  • Scale in on multiple pullbacks
  • Pyramid into winning positions
  • Maximum 8% allocation per trend

Exit Conditions ​

  • Trend reversal signals (MA crossover, structure break)
  • Momentum divergence
  • Trailing stop hit (ATR-based)
  • Time-based exit after 30+ days
  • Target profit reached (3-5x risk)

Risk Management ​

Stop Loss ​

  • Initial stop: Below recent swing low/high
  • Trailing stop: 2x ATR from highest/lowest point
  • Break-even stop after +1R profit

Position Management ​

  • Scale out 1/3 at 2R profit
  • Scale out 1/3 at 4R profit
  • Trail remaining 1/3 with wider stop

Correlation ​

  • Maximum 2 concurrent trend trades
  • Avoid correlated assets in same direction

Performance Expectations ​

  • Win Rate: 40-50%
  • Average Hold Time: 10-20 days
  • Profit Factor: 2.0-3.0
  • Max Drawdown: 12-18%
  • Best Regimes: Bull, Bear (strong trends)

Configuration ​

markdown
---
regime: ["bull", "bear"]
risk_level: medium
max_allocation: 0.3
min_sharpe: 0.6
---

Technical Indicators ​

Trend Identification ​

  • 50 EMA vs 200 EMA (golden/death cross)
  • ADX > 25 (strong trend)
  • Price structure (higher highs/lows)

Entry Timing ​

  • Pullback to 21 EMA
  • RSI 40-60 (not overbought/oversold)
  • Volume expansion on resumption

Exit Signals ​

  • 50 EMA crosses 200 EMA
  • Price closes below 21 EMA
  • RSI divergence
  • Parabolic move (>3 standard deviations)

Example Trade ​

Setup: BTC in strong uptrend

  • Entry: $42,000 on pullback to 50 EMA
  • Stop Loss: $40,500 (below swing low)
  • Risk: $1,500 per contract
  • Target: $46,500 (3R)
  • Outcome: Held 15 days, scaled out at $44,000 (1/3), $46,000 (1/3), trailed final 1/3 to $48,500 for average exit of $46,167 (+9.9%)

Monitoring ​

Key metrics:

  • Trend strength (ADX)
  • Pullback depth
  • Volume patterns
  • Correlation with other positions
  • Risk-adjusted returns