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Trading Research

Binance cryptocurrency trading research, technical analysis, and position management. Triggers on requests for crypto prices, market data, trading analysis, DCA

Introduction

# Trading Research Skill

Comprehensive cryptocurrency trading research and analysis focused on Binance markets. Designed for conservative-moderate risk traders using DCA (Dollar Cost Averaging) strategies with technical analysis support.

## When to Use This Skill

Activate when user requests: - Current crypto prices or market data - Technical analysis (RSI, MACD, Bollinger Bands, etc.) - DCA strategy planning or schedule calculation - Position sizing with risk management - Market scanning for opportunities - Whale tracking or large order monitoring - Trading strategy advice or risk assessment

## Core Philosophy

- **Conservative first**: Preserve capital, minimize risk - **DCA-focused**: Time in market > timing the market - **Risk management**: Never risk more than 1-2% per trade - **Data-driven**: Use technical indicators for confirmation, not prediction - **Transparent**: Show calculations, explain reasoning

## Available Tools

### 1. Market Data (`binance_market.py`)

Fetch real-time Binance market data.

**Use when**: User asks for price, volume, orderbook, recent trades, or funding rates.

**Common commands**: ```bash # Current price and 24h stats (default) python3 scripts/binance_market.py --symbol BTCUSDT

# Orderbook depth python3 scripts/binance_market.py --symbol BTCUSDT --orderbook --depth 20

# Candlestick data python3 scripts/binance_market.py --symbol BTCUSDT --klines 1h --limit 100

# Recent trades python3 scripts/binance_market.py --symbol BTCUSDT --trades --limit 100

# Funding rate (futures) python3 scripts/binance_market.py --symbol BTCUSDT --funding

# All data at once python3 scripts/binance_market.py --symbol BTCUSDT --all

# JSON output (for piping) python3 scripts/binance_market.py --symbol BTCUSDT --json > btc_data.json ```

**Intervals**: 1m, 5m, 15m, 30m, 1h, 4h, 1d, 1w

### 2. Technical Analysis (`technical_analysis.py`)

Calculate and interpret technical indicators.

**Use when**: User asks for TA, indicators, buy/sell signals, or market analysis.

**Common commands**: ```bash # Full analysis (default: 1h timeframe, 200 candles) python3 scripts/technical_analysis.py --symbol BTCUSDT

# Different timeframe python3 scripts/technical_analysis.py --symbol BTCUSDT --interval 4h

# Custom RSI period python3 scripts/technical_analysis.py --symbol BTCUSDT --rsi-period 21

# From saved klines JSON python3 scripts/technical_analysis.py --input btc_klines.json

# JSON output python3 scripts/technical_analysis.py --symbol BTCUSDT --json ```

**What it analyzes**: - Trend direction (SMA 20/50, EMA 12/26) - RSI (14) - overbought/oversold - MACD - momentum and crossovers - Bollinger Bands - volatility and position - Support/resistance levels - Volume analysis - Trading signals and recommendations

### 3. DCA Calculator (`dca_calculator.py`)

Plan Dollar Cost Averaging strategies.

**Use when**: User wants to set up DCA, calculate investment schedules, or compare strategies.

**Common commands**: ```bash # Basic DCA plan python3 scripts/dca_calculator.py --total 5000 --frequency weekly --duration 180

# With current price for projections python3 scripts/dca_calculator.py --total 10000 --frequency monthly --duration 365 --current-price 100000

# Show scenario analysis python3 scripts/dca_calculator.py --total 5000 --frequency weekly --duration 180 --current-price 100000 --scenarios

# Custom start date python3 scripts/dca_calculator.py --total 5000 --frequency weekly --duration 180 --start-date 2026-03-01

# JSON output python3 scripts/dca_calculator.py --total 5000 --frequency weekly --duration 180 --json ```

**Frequencies**: daily, weekly, biweekly, monthly

**Output includes**: - Purchase schedule with dates and amounts - Number of purchases and amount per purchase - Scenario analysis (flat, bull, bear markets) - Comparison to lump sum approach

### 4. Position Sizer (`position_sizer.py`)

Calculate safe position sizes using risk management rules.

**Use when**: User wants to enter a trade and needs to know position size, stop loss, or take profit levels.

**Common commands**: ```bash # Basic position sizing (2% risk recommended) python3 scripts/position_sizer.py --balance 10000 --risk 2 --entry 100000 --stop-loss 95000

# Conservative 1% risk python3 scripts/position_sizer.py --balance 10000 --risk 1 --entry 100000 --stop-loss 97000

# Custom take-profit ratios python3 scripts/position_sizer.py --balance 10000 --risk 2 --entry 100000 --stop-loss 95000 --take-profit 2 3 5

# Ladder strategy (scaling in) python3 scripts/position_sizer.py --balance 10000 --risk 2 --entry 100000 --stop-loss 95000 --ladder 3

# JSON output python3 scripts/position_sizer.py --balance 10000 --risk 2 --entry 100000 --stop-loss 95000 --json ```

**Output includes**: - Position size in units and dollar value - Risk amount in dollars - Stop loss percentage - Take profit levels at multiple R:R ratios - Position as percentage of account - Warnings if position too large

**Rules**: - Conservative: Risk 1% per trade - Moderate: Risk 2% per trade - Never exceed 3% risk per trade - Position should be <50% of account

### 5. Market Scanner (`market_scanner.py`)

Scan all Binance USDT pairs for opportunities.

**Use when**: User wants to find top movers, volume spikes, or new opportunities.

**Common commands**: ```bash # Full market scan (default) python3 scripts/market_scanner.py

# Top gainers only python3 scripts/market_scanner.py --gainers --limit 20

# High volume pairs python3 scripts/market_scanner.py --volume

# Most volatile pairs python3 scripts/market_scanner.py --volatile

# Breakout candidates (near 24h high with volume) python3 scripts/market_scanner.py --breakout

# Filter by minimum volume python3 scripts/market_scanner.py --min-volume 500000

# JSON output python3 scripts/market_scanner.py --json ```

**Categories scanned**: - Top gainers (24h price change) - Top losers (24h price change) - Highest volume pairs - Most volatile pairs (high-low spread) - Potential breakouts (near 24h high + volume)

### 6. Whale Tracker (`whale_tracker.py`)

Monitor large trades and orderbook imbalances.

**Use when**: User asks about whale activity, large orders, or orderbook pressure.

**Common commands**: ```bash # Full whale analysis (default) python3 scripts/whale_tracker.py --symbol BTCUSDT

# Large trades only python3 scripts/whale_tracker.py --symbol BTCUSDT --trades

# Orderbook imbalances only python3 scripts/whale_tracker.py --symbol BTCUSDT --orderbook

# Custom orderbook depth python3 scripts/whale_tracker.py --symbol BTCUSDT --orderbook --depth 50

# Adjust threshold (default 90th percentile) python3 scripts/whale_tracker.py --symbol BTCUSDT --threshold 95

# JSON output python3 scripts/whale_tracker.py --symbol BTCUSDT --json ```

**Output includes**: - Large trades (top 10% by value) - Buy vs sell pressure from large trades - Orderbook bid/ask imbalance - Orderbook walls (large orders) - Market sentiment (bullish/bearish/neutral)

## Quick Start Workflows

### "What's BTC doing?" ```bash # Get overview python3 scripts/binance_market.py --symbol BTCUSDT --ticker

# Technical analysis python3 scripts/technical_analysis.py --symbol BTCUSDT --interval 1h ```

### "Should I buy now?" ```bash # Check technicals first python3 scripts/technical_analysis.py --symbol BTCUSDT

# Check whale activity python3 scripts/whale_tracker.py --symbol BTCUSDT

# If signals look good, calculate position size python3 scripts/position_sizer.py --balance 10000 --risk 2 --entry <CURRENT_PRICE> --stop-loss <SUPPORT_LEVEL> ```

### "Set up a DCA plan" ```bash # Plan the strategy python3 scripts/dca_calculator.py --total 5000 --frequency weekly --duration 180 --current-price <CURRENT_PRICE> --scenarios

# Show them the schedule and explain ```

### "Find me opportunities" ```bash # Scan market python3 scripts/market_scanner.py

# For interesting pairs, do deeper analysis python3 scripts/technical_analysis.py --symbol <PAIR> python3 scripts/whale_tracker.py --symbol <PAIR> ```

### "What's the market sentiment?" ```bash # Check whale activity python3 scripts/whale_tracker.py --symbol BTCUSDT

# Check volume and volatility python3 scripts/market_scanner.py --volume --volatile ```

## Reference Materials

Located in `references/` directory:

### `binance-api.md` - API endpoints and parameters - Rate limits - Authentication for signed requests - Order types and time-in-force - Error codes - Python examples

**Use when**: Need API details, building custom queries, or troubleshooting

### `indicators.md` - Technical indicator formulas - Interpretation guidelines - Common settings per timeframe - Combining indicators - Reliability assessment - Common mistakes

**Use when**: Explaining indicators, interpreting signals, or educating user

### `strategies.md` - DCA variations (fixed, value-based, RSI-based, ladder) - Risk management (1-2% rule, stop loss strategies) - Trend following strategies - Entry/exit strategies - Position sizing examples - Performance tracking

**Use when**: Planning trades, explaining strategies, or risk management questions

## Trading Guidance

### For Conservative Traders

**DCA Approach**: - Start with weekly or monthly purchases - Fixed amount: $50-200 per purchase - Duration: 6-12 months minimum - Don't try to time the market - Accumulate and hold long-term

**Risk Management**: - No leverage - 50%+ of account in cash/stablecoins - Risk 1% per trade maximum - Only trade with 3+ confirmations - Stop losses always active

### For Moderate Risk Traders

**Enhanced DCA**: - Adjust amounts based on RSI (buy more when oversold) - Use technical analysis for better entries - 60-70% DCA, 30-40% active trading - Risk 2% per trade on active positions

**Position Trading**: - Wait for confluence of indicators - Use position_sizer.py for every trade - Risk:Reward ratio minimum 2:1 - Trail stops as profit grows

### Red Flags (Don't Trade)

- RSI >70 and rising (overbought) - Low volume breakout (likely false) - Against major trend (don't short bull market) - Multiple indicators conflicting - No clear support level for stop loss - Risk:Reward ratio <1.5:1 - During extreme fear or greed

## Response Format

When user asks for analysis:

1. **Current State**: Price, trend, key levels 2. **Technical View**: Indicator readings and what they mean 3. **Sentiment**: Whale activity, volume, market pressure 4. **Recommendation**: Buy/wait/sell with reasoning 5. **Risk Management**: Position size, stop loss, take profit if applicable 6. **Caveats**: What could go wrong, alternative scenarios

Always include: - Specific numbers (don't just say "oversold", say "RSI at 28") - Risk warnings for trades - Clear next steps - Timeframe context (day trade vs swing trade vs long-term)

## Important Notes

### API Access - All scripts use Binance public API (no authentication needed for data) - Respect rate limits (built into scripts) - If API blocked by geo-restrictions, scripts will error gracefully

### Limitations - **No trading execution**: These tools are for research only - **No real-time WebSocket**: Data is snapshot-based (REST API) - **No futures-specific features**: Primarily spot market focused (except funding rates) - **No backtesting engine**: Manual strategy evaluation

### Authentication Required For - Placing orders - Checking account balance - Viewing open orders - Accessing trade history

**Note**: Guide users to Binance API documentation (see `references/binance-api.md`) for authenticated trading setup.

## Error Handling

If script fails: 1. Check internet connection 2. Verify symbol format (uppercase, e.g., BTCUSDT not btc-usdt) 3. Check if Binance API accessible in user's location 4. Verify script path and Python availability 5. Check for typos in parameters

Common errors: - **HTTP 451**: API blocked in location (suggest VPN) - **Invalid symbol**: Check symbol exists on Binance - **Rate limit**: Wait 60 seconds and retry - **Connection timeout**: Network issue or API down

## Best Practices

1. **Always show your work**: Display the command you ran 2. **Interpret results**: Don't just dump data, explain what it means 3. **Context matters**: Different advice for day trade vs DCA accumulation 4. **Risk first**: Mention risk management before entry signals 5. **Be honest**: If indicators conflict, say so 6. **Update knowledge**: If market conditions changed, acknowledge it 7. **No predictions**: Frame as "if X then Y", not "X will happen" 8. **Show alternatives**: Bull and bear case scenarios

## Skill Maintenance

### Testing Run each script monthly to ensure API compatibility: ```bash python3 scripts/binance_market.py --symbol BTCUSDT --help python3 scripts/technical_analysis.py --help python3 scripts/dca_calculator.py --help python3 scripts/position_sizer.py --help python3 scripts/market_scanner.py --help python3 scripts/whale_tracker.py --help ```

### Updates Needed If - Binance changes API endpoints - New technical indicators requested - Additional risk management tools needed - User feedback suggests improvements

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**Remember**: This skill helps users make informed decisions. It does not make decisions for them. Always emphasize personal responsibility and risk disclosure.

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