trend_follower.md 1.2 KB

Trend Follower

Directional strategy for confirmed momentum.

Best used when

  • trend is strong and persistent
  • structure supports continuation
  • liquidity is normal
  • Hermes wants to follow momentum instead of fading it

Avoid when

  • price is range-bound
  • trend strength is weak or noisy
  • event risk is high
  • the market is too chaotic for clean continuation

Core parameters

  • trade_side: buy, sell, or both
  • order_notional_quote: quote-currency notional per order
  • max_order_notional_quote: optional quote notional cap per order
  • entry_offset_pct: offset from market for entries
  • exit_offset_pct: offset for exits or reversals
  • cooldown_ticks: pause between actions

Hermes policy mapping

  • Hermes controls whether the side is active.
  • Hermes may set the quote notional and offsets.

Notes

  • Hermes decides when trend following is allowed.
  • Trader maps policy to concrete order behavior.
  • The strategy reports side, quote notional, and policy-derived settings.
  • trade_side lets Hermes or the operator run a long-only, short-only, or symmetric directional instance.
  • live fee rates are used directly, so the strategy does not need a configured fee fallback.