Glossary

Every term Catalyst uses, in plain English.

RSI (Relative Strength Index)

A score from 0 to 100 that summarizes how strong recent buying or selling has been. Above 70 suggests a coin may be overbought; below 30, oversold.

How Catalyst uses it: Shown as a sub-panel under the price chart. The bot does not trade on RSI — it's there to help you read the market.

SMA (Simple Moving Average)

The average closing price over the last N bars. Smooths out noise so trends are easier to see.

How Catalyst uses it: Catalyst overlays SMA(20) and SMA(50) on charts when the SMA toggle is on.

EMA (Exponential Moving Average)

Like SMA, but weights recent prices more heavily, so it reacts faster.

How Catalyst uses it: Shown as EMA(12) overlay when toggled on.

MACD

Moving Average Convergence Divergence. Shows momentum by comparing a fast EMA to a slow EMA, with a signal line and histogram.

How Catalyst uses it: Shown as a sub-panel when toggled on; line crossings hint at momentum shifts.

Bollinger Bands

A channel drawn 2 standard deviations above and below a 20-bar SMA. Wide bands = high volatility; tight = low.

How Catalyst uses it: Toggle Bollinger to shade the band on the chart.

Stop-loss

An automatic order to sell if the price falls a set percent below entry, limiting your loss.

How Catalyst uses it: Catalyst sets a stop-loss on every trade (default −3%). You can change it in Settings → Trading Rules.

Take-profit

An automatic order to sell once the price rises a set percent above entry, locking in profit.

How Catalyst uses it: Default +6%, giving a 2:1 reward-to-risk ratio with the default stop.

Confidence

Catalyst's score for how strong a signal is (0–1). Computed from keyword sentiment × source reliability.

How Catalyst uses it: The bot acts only when confidence ≥ 60% (default).

Source reliability

A fixed score (0–1) for each news source based on how trustworthy its headlines have been historically.

How Catalyst uses it: The bot ignores sources below the configured min (default 0.70).

Cooldown

A minimum time gap between trades on the same coin, to avoid chasing every headline.

How Catalyst uses it: Default 45 minutes per coin.

Drawdown

The drop from a previous peak in your equity curve. Even profitable strategies have drawdowns.

How Catalyst uses it: Shown as shaded dips on the equity chart.

Paper trading

Simulated trades using real prices but no real money — perfect for learning.

How Catalyst uses it: Catalyst's default mode. You stay safe until you opt-in to live.

Testnet

A sandbox version of an exchange that uses fake funds.

How Catalyst uses it: Default for Binance connections, so live-API code can be tested without risk.

Notional

The total dollar value of a trade (amount × price).

How Catalyst uses it: Catalyst won't place a trade below $10 notional.

Slippage

The difference between the price you expected and the price you actually got.

How Catalyst uses it: Backtests let you set an estimated slippage % to be realistic.

Daily loss limit

A circuit breaker that pauses new trades once you've lost a set % in a day.

How Catalyst uses it: Default −3% per UTC day. Resets at 00:00 UTC.