Skip to content

hypersniper_algorithm_documentation_updated.md

Latest commit

 

History

History
298 lines (211 loc) · 5.29 KB

hypersniper_algorithm_documentation_updated.md

File metadata and controls

298 lines (211 loc) · 5.29 KB

HyperSniper Trading Algorithm — Technical Documentation

1. Overview

HyperSniper is a multi-factor algorithmic trading decision engine designed to detect high‑probability trading opportunities in cryptocurrency derivatives markets.

The system combines:

  • Technical indicators
  • Multi‑timeframe analysis
  • Market structure signals
  • Volatility filters
  • Microstructure signals

Final decisions returned by the algorithm:

  • LONG
  • SHORT
  • NO TRADE

Primary timeframe: 1H candles

Confirmation timeframes: 4H, 1D

2. Algorithm Pipeline

Processing stages:

  1. Market data ingestion
  2. Indicator calculation
  3. Signal scoring
  4. Market regime detection
  5. Risk filtering
  6. Decision engine
  7. Trade signal output

3. Algorithm Flowchart

📎 Interactive flowchart: see hypersniper_flowchart.html

The decision engine processes market data through the following stages:

Market Data Input
       │
       ▼
Calculate Indicators
  ┌────┬────┬────┬────┬────┬────┬────┐
  EMA  MACD RSI STOCH  BB  OBV  ADX  FVG
  └────┴────┴────┴────┴────┴────┴────┘
       │
       ▼
Signal Scoring Engine  (weighted composite score)
       │
       ▼
Multi-Timeframe Confirmation  [1H · 4H · 1D]
       │
       ▼
Market Regime Detection
       │
   ADX > 30?
   ┌───┴───┐
  YES      NO
   │        │
TREND    RANGE
MODE      MODE
(std thr) (strict thr)
   └───┬───┘
       │
       ▼
Risk Filters
  [Volume · Funding · HTF · Volatility · Session · BTC Veto]
       │
  Passed?
  ┌────┴────┐
 YES       NO
  │         │
Score    NO TRADE
≥ LONG?
  ├─YES──▶ OPEN LONG
  │
  └─NO──▶ Score ≤ SHORT?
            ├─YES──▶ OPEN SHORT
            └─NO───▶ NO TRADE
                │
                ▼
         Trade Execution
     [NO_OPEN=0 · LONG=1 · SHORT=2]

4. Technical Indicators

EMA Stack

EMA Period
EMA Fast 9
EMA Medium 21
EMA Slow 50
EMA Macro 200

Bullish stack: EMA9 > EMA21 > EMA50
Bearish stack: EMA9 < EMA21 < EMA50
Macro trend: EMA50 > EMA200 → bullish · EMA50 < EMA200 → bearish

MACD

MACD   = EMA12 − EMA26
Signal = EMA9(MACD)

Signals detected:

  • Momentum expansion
  • Momentum weakening
  • Bullish divergence
  • Bearish divergence

RSI

RSI = 100 − (100 / (1 + RS))
Zone Value
Overbought RSI > 75
Oversold RSI < 25

Stochastic Oscillator

Used for:

  • Momentum shifts
  • Reversal detection
  • Overbought / oversold signals
  • Crossover signals

Bollinger Bands

Upper = SMA + k·σ
Lower = SMA − k·σ

Where σ = standard deviation, k = 2 (default)

Signals:

  • Bollinger squeeze
  • Volatility breakout
  • Mean reversion

OBV (On Balance Volume)

OBV(t) = OBV(t−1) + Volume   if Close↑
OBV(t) = OBV(t−1) − Volume   if Close↓

Used for: accumulation · distribution · divergence analysis

ADX — Trend Strength

Threshold Meaning
ADX > 25 Strong trend
ADX > 30 Algorithm TREND MODE trigger

Supertrend

Trend‑following indicator based on ATR.

States: BULL · BEAR · NEUTRAL

CHOP Index

Value Regime
CHOP < 38 Trending market
CHOP > 61 Ranging market

Fair Value Gap (FVG)

Detects liquidity imbalance zones.

  • Bullish FVG → upward imbalance
  • Bearish FVG → downward imbalance

Used for: liquidity zones · entry optimization · smart money imbalance detection

5. Score Engine

Each indicator contributes a weighted score to the final decision value:

Score = (EMA × 2) + (MACD × 2) + RSI + Stochastic + Bollinger
      + OBV + FVG + ADX + CHOP + Microstructure

6. Market Regime Detection

TREND MODE

Activated when: ADX > 30

  • LONG if Score ≥ threshold
  • SHORT if Score ≤ −threshold

RANGE MODE

Activated when: ADX ≤ 30

  • Stricter thresholds applied
  • Stronger confirmation required

7. Microstructure Signals

Signal Meaning
OrderBookImbalance (OBI) Buy vs. sell pressure
VD Ratio Aggressive trading activity
Open Interest Position buildup
Funding Rate Market crowding

Thresholds:

  • OBI > 1.3 → strong buy pressure
  • OBI < 0.7 → strong sell pressure

8. Risk Filters

Trades are blocked when any of the following conditions are met:

Filter Condition
Volume Market volume too low
Funding Rate Extreme funding rate
HTF Conflict Higher timeframe directional conflict
Volatility Abnormal volatility spike
Session Trading session filter fails
BTC Correlation BTC correlation veto triggered

9. Decision Engine

Possible outputs:

Signal Value
NO_OPEN 0
LONG_POS 1
SHORT_POS 2

Decision sequence:

  1. Calculate indicators
  2. Compute total score
  3. Detect market regime
  4. Apply thresholds
  5. Run risk filters
  6. Return trading signal