Chandelier Exit

Configuration Example

Configuration for chandelier exit uses YAML or JSON format. Key parameters include timeframes, signal thresholds, position sizing rules, and risk limits.

# Example configuration for Chandelier Exit
strategy:
  name: chandelier-exit
  timeframe: 5m
  indicators:
    - rsi
    - ema_fast
    - ema_slow
  entry_conditions:
    - rsi_oversold
    - ema_crossover_bullish
  exit_conditions:
    - rsi_overbought
    - stop_loss_hit
  risk:
    max_position_size: 0.02
    stop_loss_pct: 0.015

Implementation

Implementation of chandelier exit follows a modular architecture. Configuration files define parameters, strategy modules handle logic, and exchange adapters manage execution.

Testing Approach

Testing chandelier exit includes unit tests for signal logic, integration tests for exchange interaction, and backtests against historical data with realistic slippage modeling.

Performance Metrics

Key metrics include Sharpe ratio, maximum drawdown, win rate, profit factor, and average trade duration. Compare against baseline strategies and adjust parameters based on out-of-sample results.

Risk Considerations

Risk management for chandelier exit addresses position limits, stop loss placement, correlation exposure, and worst-case drawdown scenarios. Regular monitoring prevents drift from intended behavior.