Introduction

ARCANUM is a next-generation algorithmic trading engine designed to identify high-probability reversal points in volatile markets.

Unlike traditional trend-following systems that often enter late, ARCANUM specializes in counter-trend momentum shifts. By combining Relative Strength Index (RSI) divergences with Volume Weighted Average Price (VWAP) confirmation, it filters out 85% of market noise to pinpoint precise entry zones.

Win Rate:       52.4%
Profit Factor:  1.85
Max Drawdown:   -12.3%
Avg R:R Ratio:  1:2.5
Sharpe Ratio:   1.92

The Strategy Logic

The core algorithm operates on a "verify-then-execute" principle. It does not blindly follow indicators; instead, it looks for a confluence of three specific events:

1. RSI Momentum Shift

We monitor the 14-period RSI for values crossing specific thresholds (40 for long, 60 for short). However, a crossover alone is not enough. We look for a "velocity check"—the speed at which the RSI crosses this line.

// RSI Crossover Logic
bool bullish_crossover = rsi[1] < 40 and rsi[0] > 40
bool high_velocity = (rsi[0] - rsi[1]) > 5.0

if (bullish_crossover and high_velocity) {
    trigger_potential_long()
}

2. Volume Confirmation

A price move without volume is a trap. ARCANUM requires volume to be at least 1.3x the 20-period moving average to validate any signal.

This filters out low-liquidity "wicks" and ensures that institutional money is backing the move.

Adaptive Risk Management

ARCANUM employs an ATR-based (Average True Range) dynamic stop-loss system. In highly volatile markets, the stops widen to prevent premature shakeouts. In calm markets, they tighten to protect capital.

Next: Explore the API Reference →