Trading Research

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:

# 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:

# 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:

# 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:

# 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:

# 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:

# 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?"

# 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?"

# 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"

# 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"

# 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?"

# 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:

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

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