> 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/guides/cookbook.md). # Strategy Cookbook A collection of proven, time-tested strategy patterns you can build in Guida. Each recipe explains the idea, when it works, when it doesn't, and how to express it in plain English. Use them as starting points and adapt the numbers to your own goals and risk tolerance. > These are educational examples, not recommendations. Every strategy carries risk. Always backtest and paper-trade before relying on anything, and set risk limits you're comfortable with. *** ## 1. Dollar-Cost Averaging (DCA) **The idea:** Buy a fixed dollar amount on a regular schedule, regardless of price. Over time, you buy more when prices are low and less when they're high, smoothing out your average entry. **Best for:** Long-term believers who want to build a position without agonizing over timing. **Watch out for:** DCA doesn't protect you from a sustained downtrend — it just averages your entry. Pair it with a spending cap. **Describe it as:** > *"Buy $50 of BTC every Monday, up to a maximum of $2,000 total."* *** ## 2. Buy the Dip **The idea:** Add to a position when the price falls sharply, on the thesis that you're getting a better entry on an asset you already want to own. **Best for:** Volatile assets you're bullish on long-term, where sharp pullbacks are common. **Watch out for:** "The dip" can keep dipping. Always cap your total spend so you don't keep buying into a falling knife indefinitely. **Describe it as:** > *"Buy $200 of ETH whenever it drops 10% in 24 hours, up to $1,000 total, and stop the strategy after 90 days."* *** ## 3. Profit-Taking Ladder **The idea:** Instead of trying to sell the exact top (impossible), sell in stages as the price rises, locking in gains along the way. **Best for:** Riding a run-up while systematically de-risking. **Watch out for:** You'll usually leave some upside on the table — that's the trade-off for not being greedy. That's a feature, not a bug. **Describe it as:** > *"Sell 25% of my ETH position when it's up 20%, another 25% at +40%, and the rest at +60%."* *** ## 4. Stop-Loss Protection **The idea:** Automatically exit a position if it falls to a level you've decided in advance, capping your downside. **Best for:** Every position. Seriously. This is less a strategy than a discipline. **Watch out for:** Setting stops too tight can shake you out of good positions on normal volatility. Give the trade room to breathe, but define the line you won't cross. **Describe it as:** > *"If my BTC position falls 20% from my entry, sell it all."* *** ## 5. Range Trading **The idea:** Buy near a price level where an asset has historically found support, and sell near a level where it's found resistance. **Best for:** Assets moving sideways in a well-defined band. **Watch out for:** Ranges break eventually. Combine with a stop-loss for when the asset breaks out of the band against you. **Describe it as:** > *"Buy $300 of ETH whenever it's below $2,800, and sell that position whenever it's above $3,400. Stop-loss if it falls below $2,500."* *** ## 6. Trend Following **The idea:** Increase exposure when momentum is positive and reduce it when momentum turns, aiming to ride sustained moves. **Best for:** Markets that trend strongly, as crypto often does. **Watch out for:** Choppy, directionless markets are unkind to trend strategies — you can get repeatedly whipsawed. Test across different regimes. **Describe it as:** > *"Buy $250 of BTC when it rises above its 30-day average, and sell when it falls back below it."* *** ## How to use these recipes 1. **Pick one** that matches your view and risk appetite. 2. **Adapt the numbers** — amounts, thresholds, and limits — to your situation. 3. **Backtest it** across different market conditions. 4. **Paper-trade it** on live prices. 5. **Deploy** with sensible risk controls once you're confident. For the thinking behind these patterns, revisit [Strategies](/guida-docs/core-concepts/strategies.md) and [Risk Management](/guida-docs/core-concepts/risk-management.md). --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. 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