ViperAI

How to Use ViperAI for Momentum Trading

1. Introduction

Discover how to effectively use ViperAI, the flagship deep learning-based AI trading model, designed to predict directional momentum and enhance your trading strategies.

ViperAI helps traders identify optimal entry and exit points for both long and short positions in various market conditions. Whether you're a beginner or an experienced trader looking to refine your strategies, ViperAI can help you leverage AI for superior risk-adjusted returns.

2. Setting Up & Accessing ViperAI

Step 1: Accessing ViperAI

• Connect Your Testnet Wallet: To start using ViperAI, connect your wallet to our DApp on the Arbitrum testnet. Once connected, you'll be directed to the trading dashboard. Please note that to cover gas fees, you'll need Arbitrum Sepolia testnet ETH.

Wallet connection interface

• Adding and Removing the ViperAI Indicator: To enable the ViperAI indicator, navigate to the “AI Models” tab, click on “View Market Signals,” find the trading pair you’re interested in, and select “Add to Chart.” To remove the indicator, simply click the small “X” next to the indicator's name located below your main chart.

AI Models tab with ViperAI highlighted in blue and supported markets highlighted in yellow

3. Understanding ViperAI

How ViperAI Works

Once activated, ViperAI will analyze market data to provide trading signals. Here’s how the system operates:

• Entry Signals: When the model predicts a shift in momentum, it will send alerts for long or short positions.

• Exit Signals: Signals to close positions will be triggered either when the model detects a weakening momentum or when the 2% stop-loss is activated.

Examples of entry and exit notifications highlighted in blue, with signal entry and stop-loss marked in orange.

4. Interpreting and Using the Signals

Using ViperAI for Better Trading Decisions

When you receive a long or short signal, consider the following:

• Long Signals: Indicate a favorable time to buy. If the market is trending upwards, this might be a strong signal to enter a position.

• Short Signals: Suggest a good opportunity to sell or open a short position. If you’re currently holding a long position, consider taking profits.

Best Practices

• Set a Stop-Loss: Always set a 2% stop-loss after entering a trade to limit potential losses.

• Combine Signals: Use ViperAI signals along with other indicators, such as RSI or MACD, to get better confirmation. Click the links for a detailed explanation.

5. Risk Management

Risk Management Strategies

While ViperAI assists in identifying trading opportunities, managing risk is crucial. Here are some strategies:

• Set Stop-Losses: A 2% stop-loss on every trade can help mitigate risks from unexpected market movements.

• Diversify: Consider using ViperAI across multiple trading pairs to spread risk and enhance overall performance.

6. Filtering Options

Using Dropdown Menus The AI Models interface features three dropdown menus to help you filter indicators effectively:

• Sources: Choose from All, AI-Based, or Classic.

• Types: Filter by All, Signals, or Indicators.

• Tiers: Select from All, Free, Pro, or Whitelisted.

Dropdown menus for Sources and Tiers collapsed, with the Types menu expanded and marked in orange.

7. Disclaimer

Trading Disclaimer

Trading carries risks, and past performance of any AI models does not guarantee future results. Horizon Protocol is not liable for any losses incurred while using these indicators. Traders are responsible for their own decisions and should employ risk management strategies at all times.

8. Next Steps

What’s Next?

Now that you’re familiar with ViperAI, it’s time to start trading! Simply fill out this survey to be among the first to test our cutting-edge AI tools.

For more insights, updates, and to connect with fellow traders, we invite you to join our community on Telegram and Discord. Stay up-to-date with the latest features and share your experiences with others in the Horizon Protocol community!