> For the complete documentation index, see [llms.txt](https://selen-ai.gitbook.io/selen-ai-how-to-use/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://selen-ai.gitbook.io/selen-ai-how-to-use/how-it-works.md).

# How It Works

To effectively use the automated trading strategy, follow these key steps for wallet management and trade execution:

* **Fund Each Wallet**
  * Ensure each wallet has sufficient SOL to cover both trade amounts and transaction fees.
* **Automated Buys & Sells**
  * If a wallet has no tokens, it begins by performing a **BUY** operation (swap SOL for the selected token).
  * The strategy will then alternate or repeat buys until the sell conditions are met.
  * Once the predefined conditions are met (e.g., price threshold or time frame), it will initiate a **SELL** of some or all tokens.
* **Low Funds Detection**
  * The system continuously monitors wallet balances.
  * If the wallet’s balance drops below a specified threshold (reserve), it will be flagged as **low\_fund**, and further trading for that wallet will stop.
  * If more than 50% of the wallets in use reach low-fund status, the entire strategy may enter a **Low Funds** mode, halting further trading until funds are replenished.