Methodology

How the Magnifyze Fibonacci strategy works

Magnifyze automates a spot-trading workflow built around Fibonacci retracement levels, RSI momentum confirmation, EMA trend filtering, and staged position sizing. Every step is defined in advance — this document is the definition.

Last reviewed: 19 June 2026

01
Setup Discovery

Find a swing. Measure it. Wait for the pullback.

The system scans hourly market data across 200+ spot pairs. A valid swing begins when RSI prints an oversold reading (≤ 30) and ends when RSI prints an overbought reading (≥ 70). The price move must measure between +50% and +200% for the swing to qualify.

Once the swing is qualified, Fibonacci retracement levels are projected across the move. The bot then waits for price to pull back into one of the predefined entry levels.

Figure 01 — Fibonacci Retracement on Qualified Swing 1H · Schematic, not market data
0.0% 11.8% 23.6% 38.2% 50.0% 61.8% 78.6% 100% RSI ≤ 30 swing low RSI ≥ 70 swing high 1 2 3 exit at 38.2% qualified swing
Bullish candle Bearish candle Planned entry level

Not every retracement reaches every level. The bot enters only when price actually trades through a level, and only once per setup per level.

02
Indicator Filters

Two indicators decide whether the setup is worth trading.

RSI defines the swing itself. A reading at or below 30 marks momentum exhaustion to the downside; a reading at or above 70 marks exhaustion to the upside. Both are required for the setup to qualify.

EMA50 is a trend filter applied to the first planned entry. If the 23.6% retracement level sits below the EMA50, the bot skips it and starts at 38.2% instead — a mechanical way to avoid entering inside a weakening trend.

Figure 02 — RSI Bands & EMA50 Decision Branch Schematic
RSI(14) OVERBOUGHT · ≥ 70 OVERSOLD · ≤ 30 70 30 50 qualifies low qualifies high

EMA50 Branch — first entry only

  1. RSI ≤ 30 — qualifies the swing low. The setup is invalid until this prints.
  2. RSI ≥ 70 — qualifies the swing high. Fibonacci levels are projected only after both extremes.
  3. EMA50 check — the only place EMA is consulted. It moves the first entry deeper, never shallower.
03
Staged Entries

Sizing is fixed in advance. Deeper pullbacks get larger orders.

A single setup can fill in up to four steps. The allocation per step is fixed at 8%, 16%, 24%, and 52% of the setup's total allocation. The bot does not improvise sizing or chase the price beyond the planned grid.

Because deeper retracements receive the largest order, the average fill price is dragged closer to the swing low when all four steps trigger. The setup is fully invested at 52% — there is no further chase below that.

Figure 03 — Staged Allocation Schedule Per qualified setup
ALLOCATION % FIB TRIGGER 8% step 01 23.6% 16% step 02 38.2% 24% step 03 50.0% 52% STEP 04 — DEEPEST 61.8%
Step Trigger Step size Cumulative
0123.6%8%8%
0238.2%16%24%
0350.0%24%48%
0461.8%52%100%
Larger order at deeper retracement Capped at 100% of setup allocation
04
Exit Logic

One target. One Fibonacci level above the deepest fill.

Exit is set one Fibonacci level above the deepest entry that actually filled. Filled at 50%? The exit is 38.2%. Filled all the way to 61.8%? The exit is 50%. By construction, the target sits above the average fill — when it triggers, the setup closes positive on the planned plan.

Figure 04 — Deepest-Entry to Exit Mapping Mechanical rule
DEEPEST FILL EXIT TARGET 23.6% 38.2% 50.0% 61.8% 11.8% 23.6% 38.2% 50.0% one fib level higher
Single take-profit. No partial exits, no trailing. Setup remains open until target trades or position is manually closed.
End-to-End Process

Six steps, repeated continuously across 200+ pairs.

The runtime executes the same six steps for every monitored pair, every cycle. Nothing in this loop is discretionary.

01
Scan

Pull 1H candles for 200+ USDT spot pairs.

02
Detect

Identify swings, project Fibonacci grid.

03
Confirm

RSI extremes pass. EMA50 sets first entry.

04
Stage

Place 8/16/24/52% orders at fib levels.

05
Exit

Close at one fib level above deepest fill.

06
Report

Completed setup posted to live portfolio.

Steps 01–04 execute continuously in the background. Step 05 is event-driven — the bot waits for price to reach the target. Step 06 only runs after a setup is fully closed.

Funds Safety

Your funds stay on your exchange. Magnifyze never holds custody.

Magnifyze trades on your behalf using API keys you create yourself inside Binance or Bitget. The keys grant the bot the permissions it needs to place spot orders — and nothing more.

Funds remain on the exchange

Magnifyze never receives, holds, or transfers your assets. Balances stay in your Binance or Bitget account at all times.

You create the API keys

Keys are generated inside your exchange account, with you choosing the permission scope and applying any IP restrictions.

Read + spot trading only

The bot needs read access to view balances and trading access to place orders. That is the entire required scope.

Withdrawal permission stays off

Withdrawal scope is never required. Leave it disabled when generating the key — Magnifyze cannot move funds off the exchange.

Revocable at any time

You can disable or delete the API key from your exchange account in seconds. Access ends the moment you revoke.

IP restriction recommended

Where the exchange supports it, restricting the API key to Magnifyze's IP is recommended and may be required during setup.

Critical
Never enable withdrawal permissions on a Magnifyze API key. The bot does not need them to operate, and no Magnifyze process will ever request them.
Figure 05 — Required API Key Permissions Schematic of exchange settings panel
EXCHANGE · API MANAGEMENT API key: Magnifyze-prod CREATED · IP-RESTRICTED · ACTIVE a4f2···d971···a3e8 Copy PERMISSIONS Read View account, balances, orders ON Spot & Margin Trading Place spot orders on your behalf ON Withdrawals Move funds off the exchange — must remain disabled OFF Futures Not used by current Magnifyze strategy OFF IP RESTRICTION Restrict access to trusted IPs 203.0.113.42 · MAGNIFYZE SCOPE SUMMARY Read · enabled Spot trading · enabled Withdrawals · disabled IP restricted · 1 entry
Required ON Required OFF — Withdrawals Schematic — your exchange UI will look different
Limitations

Rules-based, not risk-free.

The methodology is rules-based, but no strategy can remove market risk. Slippage, exchange outages, liquidity gaps, API failures, volatility, user configuration, and changing market regimes can affect results.

Continue

See the same rules running on a live account.

Past results do not guarantee future performance. Reported metrics reflect internal platform records and may not match every user's timing, fees, slippage, or exchange conditions.