Show Posts
Ideally you want several signals/indicators to work with, don't just rely on 1. You want a good Entry & Exit strategy, meaning that your entry and exit position has minimal cost (e.g. entering at a too low price and having your orders unfulfilled, missing out on the uptrend, or exiting too late and loosing most of your profit gained). I won't share the exact detail/settings of my TA as I'm developing a commercial Trading Agent at the moment. But the general logic I'm using is:
1. Detect a Signal
2. Verify nature of Signal (To confirm Buy or Sell position)
3. Measure strength of Signal (strong buy, weak buy, etc)
4. Specify exact Entry or Exit price (beware of buy walls / sell walls in this case)
With the above 4, I'm measuring 9 things. General rule I suppose with any strategy is, confirm as much as you can that the market is at an uptrend, a Buy signal at a downtrend market has high % probability of loss, your strategy should be based on risk management not on profit maximisation and therefore make sure that your Buy signal is when your confident that the market is at an uptrend (through TA or news).
Time intervals are key. Work with multiple time intervals (I work quarterly, 15m - 1h - 4h). TA at different time intervals can indicate multiple things (e.g. TA at 4 hours can indicate uptrend for the day, TA at 1d can indicate uptrend for the week). I've tried with 5 minute intervals but that's a tricky time interval.....
1. Detect a Signal
2. Verify nature of Signal (To confirm Buy or Sell position)
3. Measure strength of Signal (strong buy, weak buy, etc)
4. Specify exact Entry or Exit price (beware of buy walls / sell walls in this case)
With the above 4, I'm measuring 9 things. General rule I suppose with any strategy is, confirm as much as you can that the market is at an uptrend, a Buy signal at a downtrend market has high % probability of loss, your strategy should be based on risk management not on profit maximisation and therefore make sure that your Buy signal is when your confident that the market is at an uptrend (through TA or news).
Time intervals are key. Work with multiple time intervals (I work quarterly, 15m - 1h - 4h). TA at different time intervals can indicate multiple things (e.g. TA at 4 hours can indicate uptrend for the day, TA at 1d can indicate uptrend for the week). I've tried with 5 minute intervals but that's a tricky time interval.....
Interested approach you share here, my perception from TA is ability to detect signal for entering the market or to exit it. Measuring the signal strength as my knowledge to see the similarity indicators shown from various time frame/interval. Some of different in crypto trading is the ability to see buy wall or sell wall, but this can be countered by seeing the volume of opposite position such as sell walls by seeing buy volume and vice versa.
Talking interval time within 5 minutes, I am not sure can work in crypto as the volatility is not as high as in forex or stock exchange. How can find the 5 minute interval time in crypto, for which crypto? I am curios since bitcoin as the biggest volume in crypto seems will not provide good chance for this interval time imo
A lot of if not all alt-coins are volatile enough for 5 minute interval, I just finished up my strategy not long ago and it's working well at 5 minutes. With 5 minutes, average order time for me (from buy to sell) is around 5 hours with average return of 0.8% to 3%. What was tricky is getting your order filled at the right time (buy and sell order), my old buy signal was adjusted when the market enters an uptrend and a sell signal is when it enters a downtrend. Issue is, the buying and selling window is quite low, especially at 5 minutes so you can easily miss it. What I'm doing is now generating a buy signal when the market has just reached it's bottom (based on fib retracement, Directional Index, etc) and then selling when the market enters an uptrend (EMA crossover, Directional Index, RSI, Ichimoku) and using a trend line as a tracking sell order, that way my sell price is continuously adjusted along with the market trend, it may not mean that it gets filled at the peak but considering I've already entered at the bottom, my returns is good, and if I can exit quickly I can then swing onto another bottom for another alt coin.
But I think a lot of people would hate my strategy because what I'm doing Is just contributing to the volatility of the market hahaha. I think its great however to always take in consideration of fractal patterns and resistance & support line if you are doing manual TA, momentum & Stoch RSI goes hand to hand, added with identifying a good support line (previous resistance line) increases your confidence of a bounce.
