> For the complete documentation index, see [llms.txt](https://guida-2.gitbook.io/guida-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guida-2.gitbook.io/guida-docs/core-concepts/strategies.md).

# Strategies

A **strategy** is the heart of Guida. It's a clear set of rules describing what you want to happen in the market and under what conditions. This page breaks a strategy down into its parts and shows how they combine into something genuinely powerful.

## The four building blocks

Every strategy, from the simplest to the most sophisticated, is assembled from four kinds of building block.

### 1. Triggers — *when* to act

A trigger is a condition that, when true, prompts an action. Triggers can be based on:

* **Price levels** — "when BTC is below $60,000"
* **Price moves** — "when ETH drops 5% in 24 hours"
* **Time** — "every Monday at 9 a.m."
* **Technical indicators** — "when the RSI falls below 30" *(for those who want them)*

### 2. Actions — *what* to do

The action is what happens when a trigger fires — typically buying or selling a specific amount of an asset. Actions are always concrete: a defined asset and a defined size.

### 3. Sizing — *how much*

Sizing governs exposure: how much to put into each trade, and the total the strategy is ever allowed to commit. Good sizing is the difference between a strategy that survives a rough patch and one that doesn't.

### 4. Exits & guardrails — *when to get out*

Exits define how positions end:

* **Take-profit** — automatically secure gains at a target level.
* **Stop-loss** — automatically cut a position that moves against you.
* **Expiry** — automatically wind the strategy down after a set period.

## Combining conditions: AND / OR logic

Real strategies often depend on more than one thing being true. Guida lets you combine conditions with logical operators:

* **AND** — *all* conditions must be true. *"Buy when ETH drops 5% **and** it's a weekday."*
* **OR** — *any* condition triggers the action. *"Sell when I'm up 20% **or** if the price falls below my stop."*

You can group these into **AND / OR groups** to express nuanced logic — the kind of multi-condition thinking that experienced traders do in their heads, made explicit and executable.

## From intent to strategy: a worked example

Start with a plain-English intent:

> *"I want to accumulate BTC steadily, but buy extra on big dips, and I don't want to keep buying forever if it just keeps falling."*

Guida can shape this into:

* **Trigger A (time):** Every week → **Action:** Buy $50 of BTC *(steady accumulation)*
* **Trigger B (price move):** BTC drops ≥ 10% in a week → **Action:** Buy an extra $150 *(buy the dip)*
* **Guardrail:** Maximum spend of $2,000 *(don't buy forever)*
* **Expiry:** 6 months

That's a complete, disciplined strategy — dollar-cost averaging with an opportunistic dip-buyer and a hard spending limit — expressed in four lines, built from a single sentence.

## Types of strategies people build

* **Accumulation** — steadily build a position over time (e.g. dollar-cost averaging).
* **Dip-buying** — add to positions on sharp declines.
* **Profit-taking** — sell in stages as an asset rises, locking in gains.
* **Range trading** — buy near a support level, sell near resistance.
* **Trend following** — increase exposure when momentum is positive, reduce it when it turns.

You'll find ready-to-use versions of these in the [Strategy Cookbook](/guida-docs/guides/cookbook.md).

## What makes a *good* strategy

* **It has a clear rationale.** You can explain *why* it should work in a sentence.
* **It defines its exits, not just its entries.** How you get out matters more than how you get in.
* **It's sized sensibly.** No single trade or strategy can sink your whole portfolio.
* **It's been tested.** You've seen how it behaves before trusting it.

***

**Next:** [Backtesting →](/guida-docs/core-concepts/backtesting.md)


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