Formulating trading strategy
ATM provides entry signals based on on-chain indicators. Your job is to turn them into a repeatable system: when to enter, when to exit, and how much to risk.
1. Define Your Trading Objectives
Start by deciding:
What type of moves are you targeting?
(Quick scalps, 2x flips, 10x runners, long holds)
How often do you want to trade?
(Multiple times a day, once per session, few high-quality entries per week)
What’s your acceptable risk per trade?
(% of capital you’re okay losing — common: 1–3%)
Clarity here makes everything else easier.
2. Choose Entry Conditions
Use ATM signals to filter opportunities.
Your entry criteria should include at least 2–3 of the following:
Wallets In > Wallets Out
Smart money flow is positive
Buy/Sell Ratio > 1.5
Buy pressure > sell pressure
Volume In Growing
Indicates momentum
Low Market Cap ($50K–300K)
More upside, more volatility
Fresh token (<30 min)
Still early in lifecycle
Example rule:
“Enter if token is <20m old, MC < $150K, net wallet inflow positive, buy volume is 10%+ more than sell volume.”
3. Define Exit Strategy
Pick one exit rule and stick to it for at least 10–15 trades.
Fixed ROI
Sell 100% at 2x or 3x
TRTP + SL
Trailing TP at +100%, SL at -50%
Time-Based
Exit if price flat after 60–90 mins
Staggered
Sell 50% at 2x, rest at 3–5x or with trailing stop
Momentum Exit
Exit if volume or wallet flow flips negative
Make sure it fits your risk tolerance and time availability.
4. Position Sizing
Decide % of capital per trade (e.g., 2%)
Avoid oversized positions based on “conviction”
Plan for 10+ trades in a row without blowing up
Example:
If your account = $5,000 and risk per trade = 2% → Max loss = $100 → Adjust size accordingly based on SL.
5. Track & Evaluate
Use this template or your own sheet to track each trade:
Token + Algo
Entry + Exit price
ROI
Did you follow your system? (Yes/No)
What went right/wrong?
Sample for your own sheet:
12:15 UTC
$TKN
OG
$0.0012
$0.0024
$0.0006
-28%
3.4x
4h 12m
Good entry, pumped 30 min later
13:50 UTC
$LOL
Pumpfun
$0.0009
$0.0018
$0.00045
-12%
1.4x
—
Flat after 1h
After 20–30 trades, ask:
What % are profitable?
Are losses controlled?
Am I improving execution?
If not — tweak only one variable at a time.
6. Strategy Examples (Starter Kits)
Scalping
In & out within 5–10 mins
High
+30–50% TP, -20% SL
2x Flips
Most ATM signals work here
Medium
TP at 2x, SL at -50%
Trend Runners
Ride to 5–10x+
Low
Partial exits + trailing
Narrative Plays
Based on memes/social hype
Variable
Exit on momentum loss
Final Checklist Before You Trade
I know when I’ll enter
I know how I’ll exit (TP + SL)
I know how much I’m risking
I’ve backtested or paper traded this setup
I will log every trade I take
If you can’t check all five — don’t trade yet.
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