> For the complete documentation index, see [llms.txt](https://botlyz.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://botlyz.gitbook.io/docs/english/strategies-exclusives-sigma.md). # SIGMA exclusive strategies ## Overview The **SIGMA v2** and **SIGMA v2.1** strategies are Botlyz's two proprietary strategies. They are the only "exclusive" strategies in the catalog. They trade **HYPE only** on Lighter DEX: the pair is fixed and cannot be changed. Both rely on a **moving-average envelope mean-reversion** logic: they buy when the price moves far enough below the average, sell when it moves above, and revert toward the average to close. * **Pair**: HYPE only (fixed, not editable) * **Marketplace**: Lighter DEX (decentralized perp futures) * **Order type**: LIMIT (envelope logic), fixed stop-loss * **Available leverage**: 1x to 20x (configurable) * **Protocol fee**: 10 bps (0.10%), collected automatically via Lighter's "partner attribution" program > Botlyz is an automation software editor. The single 10 bps (0.10%) protocol fee is collected and remitted through Lighter. **Botlyz takes no commission on your gains.** See [Fees](/docs/english/frais.md). > Trading involves a risk of loss. This page describes how the strategies work and promises no result. Past performance is not indicative of future performance. See [Risk Warning](/docs/english/avertissement-risques.md). *** ## SIGMA v2 and v2.1: the difference Both versions share the same core mechanics (moving-average envelope, LIMIT orders, fixed stop-loss). The only difference is the **RSI filter** added by v2.1. ### SIGMA v2 Variant without an RSI filter. It enters as soon as the price crosses the moving-average envelope, and exits on the return toward the average. * More reactive: it takes every opportunity where price diverges from the average * More trades, therefore more cumulative fees * Less selective: it can enter even when the market is in strong momentum (extended trend) ### SIGMA v2.1 Identical to v2, but adds an **anti-momentum RSI filter**. The filter blocks counter-trend entries when the market is moving strongly. * RSI below the lower bound (default 42): market rather oversold, the filter does not block the LONG side * RSI above the upper bound (default 58): market rather overbought, the filter does not block the SHORT side * RSI in the neutral zone (default 42-58): entries are more restricted The RSI filter aims to avoid entries taken in overly pronounced momentum. This is a design objective, not a guarantee of effectiveness: the strategy can still generate losses. In return, v2.1 takes fewer trades than v2. *** ## How it works ### Envelope mean-reversion The strategy is based on the assumption that prices tend to revert toward an average. 1. **Moving average (MA)**: calculated over a defined period (default 140 candles) 2. **Envelope**: a band expressed as a percentage deviation around the MA (default ±3%) 3. **LIMIT orders**: a buy order is placed below the MA (LONG), a sell order above (SHORT) 4. **Exit**: return toward the moving average 5. **Fixed stop-loss**: protection defined as a percentage of the entry price (default 11%) **Illustrative example on HYPE** (values purely indicative): * MA 140 candles = 33.00 USD * ±3% envelope: buy order (LONG) at 32.01 USD, sell order (SHORT) at 33.99 USD * Exit: return toward the MA (33.00 USD) * Stop-loss: 11% of the entry price ### Profile * **Type**: range-trading, high frequency * **Behavior**: designed for ranging markets. In an extended trend, it can generate losses * **Orders**: LIMIT for entries (envelope logic), fixed stop-loss for protection *** ## Actual parameters All parameters are pre-filled with a default value and remain **editable** before signing. ### Signal parameters | Parameter | Range | Default | Versions | Description | | ------------------- | ------------- | ------- | ----------- | --------------------------------------------------- | | **MA period** | 20 to 400 | 140 | v2 and v2.1 | Length of the reference moving average | | **Envelope (%)** | 0.5 to 15 | 3 | v2 and v2.1 | Deviation below/above the MA that triggers an entry | | **Timeframe** | 5m / 15m / 1h | 5m | v2 and v2.1 | Candles used for signals | | **RSI period** | 5 to 200 | 80 | v2.1 only | Window of the anti-momentum RSI filter | | **RSI lower bound** | 0 to 100 | 42 | v2.1 only | Below this value, the SHORT side is restricted | | **RSI upper bound** | 0 to 100 | 58 | v2.1 only | Above this value, the LONG side is restricted | ### Risk parameters | Parameter | Range | Default | Description | | ------------------- | -------- | ------- | ------------------------------------------------------- | | **Leverage** | 1 to 20 | 1 | Exposure multiplier applied to the capital | | **Allocation (%)** | 1 to 100 | 100 | Share of the account capital allocated to this strategy | | **Stop-loss (%)** | 1 to 50 | 11 | Maximum loss per position before cutting | | **SL slippage (%)** | 1 to 50 | 10 | Slippage tolerance when executing the stop-loss | | **TP slippage (%)** | 1 to 50 | 10 | Slippage tolerance when executing the take-profit | > The stop-loss and take-profit are executed via IOC orders. Slippage is the accepted slippage tolerance to ensure the order is filled, in particular in case of a price gap. *** ## Minimum required capital The minimum capital depends on the **minimum order size of HYPE on Lighter**. Since SIGMA uses LIMIT orders, each order placed must stay above this minimum size after rounding to the lot step. Botlyz applies a safety margin (factor 2) to prevent an order from being rejected. The logic applied at deployment is as follows: ``` Minimum tradable capital = 2 × HYPE_minimum_order_size Minimum equity = Minimum tradable capital / (Leverage × Allocation) ``` The **tradable capital** corresponds to your equity multiplied by leverage and by allocation. As long as it stays below the required minimum, deployment is blocked with a clear message. **Simple example on HYPE** (HYPE's minimum order size varies with its price; here we use 17 USD for illustration): * Minimum tradable capital = 2 × 17 = 34 USD * With 1x leverage and 100% allocation: minimum equity = 34 / (1 × 1) = 34 USD * With 2x leverage and 100% allocation: minimum equity = 34 / (2 × 1) = 17 USD > These amounts are indicative. HYPE's actual minimum order size is read live on Lighter at the time of deployment, and it is this live value that determines your minimum capital. The configurator displays the exact required amount and a recommended amount (minimum capital × 1.5). *** ## Risk warnings ### General risks 1. **Risk of loss**: perp trading involves a risk of loss, which can go as far as liquidation of the position 2. **Liquidation**: possible in case of extreme volatility despite the stop-loss, especially at high leverage 3. **Slippage**: the SL and TP execution orders (IOC) may fill at an unfavorable price 4. **Unpredictable volatility**: HYPE can experience sudden shocks (announcements, market conditions, liquidity) 5. **No guarantee**: a backtest on past data guarantees no future result ### Risks specific to SIGMA 1. **False signals in trends**: the strategy is optimized for ranges. In an extended trend, it can accumulate losses. The v2.1 RSI filter mitigates this risk without eliminating it 2. **Whipsaws**: a price oscillating around the envelope can lead to an accumulation of micro-positions 3. **Trading fees**: each order bears the 10 bps protocol fee as well as Lighter's own fees (trading, funding). A high order frequency increases the total cost 4. **Stop-loss and leverage**: a fixed stop-loss translates into a larger loss as a percentage of capital when leverage increases. At high leverage, the liquidation risk is high ### Prudence recommendations * **Test in backtest first**: simulate your parameters before any deployment. See [Backtest](/docs/english/backtest.md) * **Start small**: deploy with capital close to the recommended minimum, without oversizing * **Supervise regularly**: review the strategy's positions and logs * **Prepare your exit**: have a plan if the position moves durably against you See also [Risk parameters](/docs/english/parametres-de-risque.md) and [Non-custodial security](/docs/english/securite-non-custodial.md). *** ## What about the other strategies? SIGMA v2 and v2.1 are the only two exclusive strategies, and they trade HYPE only. If you wish to trade **another pair** (BTC, ETH, SOL, HYPE, etc.) or build your own logic, use the **Builder**: it lets you choose your pair from the Lighter markets (BTC by default) and compose a strategy from the available indicators. See [The Builder](/docs/english/le-builder.md) and the [Strategies overview](/docs/english/vue-d-ensemble.md). *** ## Glossary | Term | Definition | | --------------------------------- | --------------------------------------------------------------------------- | | **Mean-reversion** | The assumption that prices tend to revert toward an average | | **Envelope** | A band around the MA, the threshold from which an order is placed | | **LIMIT order** | An order placed at a specific price, executed only if the market reaches it | | **IOC (Immediate Or Cancel)** | An order that fills immediately or is cancelled | | **RSI (Relative Strength Index)** | A momentum indicator, scale 0 to 100 | | **Tradable capital** | Equity × leverage × allocation | | **Liquidation** | Forced closing of a position if the margin becomes insufficient | | **Slippage** | The gap between the expected price and the actual execution price | *** Botlyz is a software editor and an automation tool, neither a fund manager nor a financial adviser. The service is non-custodial: your funds and your keys stay with you, the API keys used are in trade-only mode (no withdrawal possible) and you sign your configuration (EIP-712). You remain solely responsible for your decisions and your capital. See [Signature and transparency](/docs/english/signature-et-transparence.md) and [Non-custodial security](/docs/english/securite-non-custodial.md). Need help? See the [FAQ](/docs/english/faq.md) or [Support](/docs/english/support.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. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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