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Algotrading

Algo Trading. My Story. Part 1I want to share with you my personal story of how I dived into Algo trading. In several parts, I will tell you why I decided to start using trading robots or so-called Expert Advisers. I will explain the reasons why I started developing my own trading robots. I will share with you arguments, why it is important to have trading robots in your portfolio, and how they can change your life as a trader for the better. I will tell you my mistakes, which you will be able to avoid and cut down the time which you will need for evolving yourself in Algo trading. I started my journey in Algo trading about 5-6 years ago. I don't remember exactly that day when I made the 1st step in a new direction. I don't remember it was a rainy or sunny day. I don't remember what pushed me to buy the 1st robot. I think it is not so important, but I clearly remember my expectations after buying my 1st trading robot. I thought I would become a rich guy very soon! The robot would make tons of money, and I would do nothing for it. How naive I was! When I failed with my 1st robot, I bought another one. When I failed with the 2nd robot, I bought a new robot. All these robots failed, and it is not so easy to say, why? It could be due to their low quality, or maybe I failed with those robots because of my mistakes. I did not know how to test robots and why I had to do it. I knew nothing about how to optimize their settings. I had no ideas about many important things that I had to know in order to succeed. I bought trading robots from unknown developers in the popular market place. I bought trading robots from famous traders. I believed in everything I read about their robots. I looked at their profits, and I wanted to reach the same numbers. Why did I decide to move in Algo trading? I started trading in the financial markets as a Forex trader in 2007. For several years I made all possible and impossible mistakes and destroyed a good number of deposits. I got priceless experience in manual trading and good knowledge of how to trade properly. I evolved as a trader, and I had almost everything for profitable manual trading. There were problems just with my discipline and time. I had knowledge, experience, and tools for trading, but I could not follow my trading plan properly because of discipline. From time to time I broke the rules of my trading plan. I also did not have enough free time in order to focus on trading. As a result, I missed a lot of good trade opportunities, made mistakes that had to be avoided, and I could not realize the potential of my trading strategies and my trading plan. I could make a profit in the financial markets, but I could not be a consistently profitable trader. In order to fix these problems, one day, I decided to try Algo trading. Trading robots can work 24 hours 5 days per week. They can follow any trading plan without emotions. They are the perfect traders if we talk about the trading discipline! I dived deep into Algo trading and decided to move forward in spite of failures. I understood my mistakes, and I prepared a new plan for how to act. The idea to use trading robots from other developers and traders was not so good from my point of view. Why? I did not understand which strategies they used in their trading robots. Without understanding the principles, I could not find the workable settings which would produce stable trading results and match my requirements. I did not have enough knowledge and experience in testing, optimization, and using trading robots. I decided to spend more time in learning the theory, getting a new experience in this field. But what was the most important conclusion? I decided to start developing my trading robots using my trading ideas and strategies. I thought that I would know the main principles, and it would help me to use robots much more effectively. I had a lot of trading strategies based on indicators, and they were good candidates for coding them into trading robots. I made the 2nd step, and I became a developer of trading robots. In spite of failures, I saw the huge potential in trading robots and Algo trading. It motivated me to move forward! In the next part, I will tell you about my experience as a developer. Which mistakes I made and how they helped me to become better.
FX:XAUUSDEducation
by DLavrov
27
Euro/ Pound Scott Carney's/ Divergence Software Harmonic Scanner---Possible Product Review--- Okay, I have some serious mixed feelings today. I dont typically trade on mondays as today is the shake up of the market from the weekend and people's emotions from the market. So, I thought I would buy Scott Carney's harmonic scanner for trading view. the software was very pricey and i honestly had i very high hopes for the software. i wanted to use the software for the smaller time frames like the 1 minute and 5 minute interval as it takes a while to chart the patterns properly just so i could add a few more trading oppritunities to my day. here we have the pattern software pick up a bat pattern on the euro pound. Im very picky about my patterns, especially my anchor legs as those are going to be the frame for the patterns backbone to build off (the abcd pattern). i like my anchor legs to be significant swing high/ low points as they provide great areas of S/R levels as well. the swing points printed on the screen are 27 and 88. that means 13 or 44 candles must print either lower highs or higher lows prior to the swing point and the same after in inverse order as they happened coming up to the swing point. the softwares algorithm is picking up XA points in some random spots which i think is causing alot of the patterns to be invalid before the pattern is even completed. Now, I understand this is Scott Carney's lifes work, trading career wise, and im a self taught student of his teachings straight from his books. i just bought the 3rd volume and it answered a ton of questions i had and filled in a lot of gaps. i wish i had the old patterns i had drawn up previously when i first encountered his work and tried to mimick it on my profile so you can see the progression. so, no way am i saying this stuff is wrong im just saying it seems the software is printing in random spots that seem to fit a coding argument. So, now the pattern. here is a bat pattern with the anchor leg coming off the bottom of brief consilidation period and bit of a over reaching wick For a bat pattern even with the +/- 5% spill over (introduced in his 3rd book) for the "B" point but PA closes above the 50 which is something i started to consider in my trading and was calling those spill over patterns "Dirty," becasue in his previous boks the measurements were to be precise; however, through my own analysis i noticed the patterns i did not chart but later did were successful. So much so it could not be chalked up to randmoization but not freuent enough to be considered a pattern revision. The "C" point is also a bit odd in placement. as you can see in my pattern i chose the higher swing point which in turn when drawing the abc extension it will cast a 1.27 (an alternate abcd pattern ratio) closer to the xa 886 which is also closer to a major support area which could and has served as a great area for PA to rest and rebound off. Overall in the future i will post patterns printed by the software, but only the ones i feel like meet my stringent criteria. Again in scotts older books and videos he strictly says not to trade every pattern, and only trade the best ones and what im going to post are only the best ones on the 60m and higher. I cant post lower than the 15, and i probably wouldnt if i could, because hey i need to keep a little for myslef :P long post im sorry but i hope it was helpful!
Education
by ARegularGuy
2
BITCOIN - Invalidation and POTENTIAL reversalHello traders I. Wisdom of the day Not all traders are winners obviously. But not all losers have to be a stop-loss. A lot of consecutive stop-loss and we're out of the "trading" game. What if there would be a way to stop... the stop-loss from getting hit? There isn't a universal way but... using another indicator on top of a trading system is very powerful. This allows to exit a potential big losing position with a minimal loss - or at breakeven in the best scenario. That essentially means that .... traders have to accept that not all trades are winners... and accept to lose a few times to times. Invalidating before a stop-loss is part of reducing one's risk and increasing one's opportunity. Invalidations, also called hard exits, are an essential part of my personal trading method. II. Why a 5-minutes chart? The trading method won't give more than 3/5 trades per day even. This is not a scalping trading method, it's intraday and based on smoothed indicators for entering in a strong trend only. Those are the most secure trades possible because: - the engine waits for a strong confirmation and will avoid the fakeouts - the 5 minute allows to enters early. - entering early and getting invalidated early also. This point is crucial. Entering early with a minimum of security is KEY III Signals of the day 3.1 Invalidations in practice We got invalidated twice with a small loss. Which is exactly why I love this invalidation system so much. We exited losing positions at the beginning of the reversal or after a pullback Without it, I would have lost way more pennies :) 3.2 Shorting the "future of money" With a strong invalidation system, I get invalidated often before a "catastrophe" happens. I never want to take them because I'm human and I have "too strong" beliefs ("BTC is the future of money") ... but that's exactly why I trade with a framework because....again I'm human with feelings/emotions (despite what my ex-GF said to me #too #personal #info) The yesterday short was quite interesting as against the leading trend and below supports. I often talk about a pullback in that scenario to reduce one's risk. But the pullback also allows to get invalidated with a better exit and a smaller loss. Hopefully, you guys start connecting the dots now :) 3.3 What's next? We're right on the Daily SMA 7 and the Weekly SMA 100 is 200 USD below. I wouldn't re-enter before another signal (I'm dumb, I can only trade using a combo system deciding for me) - especially because a major weekly support is right under the candlesticks All the best, Dave ----------------------------------------- Disclaimer: Trading involves a high level of financial risk, and may not be appropriate because you may experience losses greater than your deposit. Leverage can be against you. Do not trade with capital that you can not afford to lose. You must be aware and have a complete understanding of all the risks associated with the market and trading. We can not be held responsible for any loss you incur. Trading also involves risks of gambling addiction.
BITMEX:BTCUSD.PEducation
by Daveatt
Algorithm Builer CRYPTO - XBTUSD - Review Oct 20th, 2019Hello traders I. Daily tutorial publishing challenge officially begins Starting today, I'll be publishing every night what were the setups given by the Algorithm Builder CRYPTO II. Why a 5-minutes chart? The indicator won't give more than 3/5 trades per day even. This is not a scalping trading method, it's intraday and based on smoothed indicators for entering in a strong trend only. Those are the most secure trades possible because: - the Algo Builder waits for a strong confirmation and will avoid the fakeouts - the 5 minute allows to enter very early. This point is crucial. We made it so that to enter early but with a minimum of security. III. Signal of the day 1. We had a first LONG position invalidated with a small loss. The signal was given against the leading trend (red background/green signal) and in front of multi timeframes resistances. I always wait for a pullback near the EMA 15/20 to be invalidated with a minimal loss. I made the trading method so that to be invalidated with a minimal loss 2. The second trade was fabulous !!! Signal given, in front of resistances so not easy but a pullback near the EMA 15/20 was mandatory. It even gave a better entry than the signal on the chart - allowing to enter 50 USD lower for that LONG. Those resistance lines are my take profits zones. Then, the Algorithm Builder CRYPTO users should take the first take-profit at the first resistance (here the daily SMA(7)) for a 150 USD move upwards. The second take-profit was at the second big resistance - namely the Daily SMA(20). I generally let a bit of money on the table from there, as the stop-loss is already trailed by the indicator automatically. I do it, in case, there would be another upwards move that I could catch, and for free. For free because, the stop-loss is already moved to the TP1 level at that point, and I can't lose anymore on that particular trade setup. Total trade distance: 261 USD All the best, Dave
BITMEX:BTCUSD.PEducation
by Daveatt
Part 2. The Power of Algorithmic Support and Resistance - AppleWelcome to Part 2 of the series examining algorithmic support and resistance (S/R). Today we'll check out Apple Inc (AAPL), and how the algorithm defined S/R zones over the last 15 years. So, as I mentioned in Part 1 (see the Related Ideas link below), the algorithm incorporates a number of factors to determine, in real-time, viable support and resistance zones. I primarily trade currencies, and dabble with some indexes, so I was interested to see how the algo performed in a upward biased equity market (equity markets, unlike currency markets, have an intrinsic upward momentum over the long-term). Spoiler alert: it was almost flawless. Now, I have to admit that I've cherry picked this example; not every equity/currency/index/bond market will work this well - but it is a good example of how valid the algo is. But, like every tool in a technical analysts arsenal, nothing works every time. Okay, without further rambling, let's check out some examples. We'll start back in 2006: So far, so good! There were heaps of great tradeable signals provided by the algo. Remember, as soon as a zone is identified (the vertical background colours), you can trade any subsequent signal - there's no need to wait for confirmation of the zones validity. Let's have a look at the next chart: The really interesting thing for me is how price gets stuck between Zone 3 and Zone 4. This is a perfect example that highlights how accurately the algo manages to identify zones, and how the market respects them in a consistent manner. Onto the next chart: Here we can see how, even when a zone is initially breached, it can later provide significant support/resistance. We never know exactly when a market is going to respect a zone - we simply have to wait for market/price confirmation. The next chart: Again, some really great trading opportunities here. Breakouts and retests of S/R zones are particularly great trades. You will sometimes experience false breakouts, but that's where trade and risk management comes into play. I really love how zones can come back into play years after they're formed. Okay, the last chart: Now we're up to date! Zone 8 again provided some great opportunities, and Zone 9 has yet to be re-tested by the market. That's all I wanted to cover for today. Basically just providing further examples of how the algo forms zones, and how the market (fairly) reliably reacts to them. Knowing where the market may react and where price may turn is half the battle. As you can see, you could have made a great deal of money trading these signals (ignoring the fact you could have made a great deal just buying and holding Apple, but that's not what we're looking at today). Feel free to get in touch if you have any comments or questions! All the best, DD
NASDAQ:AAPLEducation
by DreamsDefined
2
Strategy Builder - What can we do with it ?Hi y'all After publishing this Strategy-Builder-Crypto-Single-Trend-Plots/ I got asked a lot of questions privately challenging me to showcase what a more advanced version can do (please see in this idea what it can do) I use a custom algorithm and that's the whole point of the tool. You can define yours and it will be truly YOURS. In this case, I added secondary signals to allow me to enter more often because it suits my psychology and capital and this configuration mixed with the m30 timeframe allows to : - only take trades with STRONG trends - I'm not interested in < 10% move with this algorithm - avoid many fakeouts due to low timeframes To give a bit more details, I'll trade only the diamond and the first or sometimes second triangle signal of a given bullish/bearish sequence. As explained here Strategy-Builder-Crypto-Single-Trend-Plots/ , if in front of a resistance/support, I'll define a pullback in the indicator and track the signal via alert (why staying in front of the charts seriously) Also I'll exit a position when a trend signal (those small red and blue labels) in the opposite direction will appear. This will invalidate a potential loosing position and will allow me to exit with a small loss Quick FAQ What is the winning rate ? Depends of your configuration and psychology. Even with the good signal, if you buy a resistance without analyzing, no indicator/bot/god will help Without being focused and rigourous, win rate is negative ... but with a bit of determination, you'll explode your own track record and will showcase to your contacts how great of a trader you are Is it time consuming to find a configuration ? YES quite a bit at the beginning but once done... it's done. In a few hours/days you'll get a first proper version See what I mean ? You won't have to monitor the charts too much anymore and track visually the convergence of all your indicators leaving completely exhausted/stressed at the end of the day You can even publish your signals to brag on Tradingview/Twitter/Facebook/Instagram/... Are there any other benefit(s) ? Well you're a bit greedy to ask me this friend but yes ... you'll understand after using it. You'll find configurations you wouldn't be able to think of without this tool It will help enhance your analysts skills and give you a new perspective... the perspective of ALGO TRADING Why did you make it ? I made it for me to trade cryptocurrencies and being using it for over 4 years. I optimized it constantly for the last 4 years (we should be at the version 376 on Tradingview now). I wanted to remove the noise from Twitter and be only focus on TA as I'm convinced that TA will tell you everything you'll need to know Some friends asked me to try it and now they're only trading with it because it freed them so much time. And they can create their algorithm for all assets class for all timeframes (scalping, intraday, swing) and matching their capital and psychology So... I'm sharing it with the community and hope you'll like it as much as my small community likes it Please shoot in the comments or in the indicator comments any question that you might have. For more personal question, shoot me a DM. I'll try to reply within a day Enjoy my dear apprentice algo traders Dave
BITSTAMP:BTCUSDEducation
by Daveatt
Are you a victim of your emotions ruining your trading?Emotions... They are the reason why over 90% of traders fail. Emotions always get in the way. Technical analysis helps to measure the psychology of the market but its still very hard to trade using technical analysis without getting the emotions involved and even harder to automate trading using technical analysis. This is the biggest reasons why quants are popular and becoming even more popular. Quants take emotions out of trading. Unfortunately, quants are mostly used by Wall Street right now. The Wall Street Journal has a multi-story piece about quants with catchy titles like "Meet the New Kings of Wall Street" and "The Quants Run Wall Street Now." We think this needs to change and that quants should be available to the masses. This is why we started Quant Engine, our goal is to provide everyone access to quants. We think trading should be automated using scientifically proven trading models. With that said, we want to introduce you to our first strategy model that we are providing to the public. This is only the beginning and it shows the possibilities. This models is for BTCUSD 1 Day resolution. To get access follow the link provided. More strategies are coming soon so make sure to like and follow us.
BITSTAMP:BTCUSDEducation
by QuantEngine
2
BCH - Algorithmic Entry and Target hit beautifully!I realise it's easy to state after the fact, but BCH has produced a clear example of fibonacci entry and first target hit. I just missed my entry as I noticed this a little late, highlighting the difference between trading and TA. However, its impossible to miss the confluence with the entry, RSI moving above 30, divergence appearing on the EWO and the entry at the Golden Pocket. Stops just outside the 65 needed to be careful as a cheeky wick could have caught them. Its also satisfying to see my automatic algo, written using pine script, producing a fantastic trade set up in seconds. Sam
BEducation
by crypto_0sam0