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The Future of Algorithmic Trading: Trends to Watch in 2023Let's talk about the trends shaping the future of algorithmic trading. After all, an occasional pulse check keeps you ahead in the game. The Explosive Growth: A Historical Perspective By 2032, the algorithmic trading market is projected to balloon to USD 36.75 billion . Being ahead of this curve doesn't just make you a participant; it makes you a pioneer. Early adoption provides a competitive edge, allowing you to exploit market inefficiencies before they become common knowledge. So, don't just follow the trend—be the trend. Democratization of Algorithmic Trading Forget the intimidating jargon; algorithmic trading is becoming as user-friendly as your smartphone. With trading platforms introducing simplified coding languages like Pine Script (TradingView), ThinkScript (ThinkorSwim), and EasyLanguage (TradeStation), you don't need a computer science degree to get started. And if coding isn't your thing, a burgeoning freelance market and point-and-click interfaces make algorithmic trading more accessible than ever . Short-Term Traders: The New Beneficiaries In the world of short-term trading, timing matters. Algorithmic trading is not just a luxury in this realm; it's a necessity. Imagine a scenario where you're eyeing a sudden price drop in a volatile asset. A manual trader might hesitate, double-check, and possibly miss the window of opportunity. An algorithm, on the other hand, can execute a trade within a few seconds that matches the rules of your strategy without wasting the moment. Moreover, algorithms can monitor multiple market indicators simultaneously, something virtually impossible for a human trader juggling multiple screens. This multi-tasking ability enables more informed decision-making, which is crucial for short-term strategies that rely on quick, accurate data interpretation. It's like having an entire team of analysts and traders compacted into a single, efficient algorithm. Conclusion The rise of algorithmic trading is not a wave of the future—it's the tide that's already lifting all boats. From its democratization to its unparalleled advantages for short-term trading, the case for algorithmic trading has never been stronger. ---- Additional Resources For those keen to delve deeper, here are some recommendations: "Algorithmic Trading: Winning Strategies and Their Rationale" by Ernest P. Chan "Building Winning Algorithmic Trading Systems" by Kevin J. Davey "Trading Systems and Methods" by Perry J. Kaufman
CME_MINI:ES1!Education
by TradersPostInc
ETH: Brace for Boring; Range TradingHi Traders, Investors and Speculators of Charts📈📉 Although we have seen slight corrections to the upside after a stretch of red days, most Technical Indicators are still extremely bearish in higher timeframes. It's helpful to look at technical indicators in higher timeframes because this cancels out the noise and shows the real trend. Occasional wicks above and below is possible, as this type of price action is attractive for bots. Bots are algorithms / algorithmic traders that function really well in tight, range bound zones. When the bounces become too obvious; an occasional wick is seen above the resistance zone or below the support zone. You too can trade these zones, if you are extremely disciplined and trade with spot instead of leverage. Leverage trading in tight ranges gets you rekt more often than not. Again, I'm still looking at accumulation opportunities across the altcoin markets instead of trying to trade BTC or ETH here. _______________________ 📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍 We thank you for your support ! CryptoCheck
by CryptoCheck-
37
Battle-tested through the ups and downs of Etherium historyA trading strategy that's been battle-tested through the ups and downs of Eth's history. This strategy doesn't blink in the face of market chaos or get swayed by emotions. It's a calculated game plan that knows when to step in and when to step back. Compare that to emotional investing, where fear and greed call the shots. Imagine making decisions when you're on an emotional rollercoaster—buying high in excitement and selling low in panic. That's a recipe for disaster. A backtested risk-managed strategy, though, is like a cool-headed coach that sticks to the game plan no matter what. It's about discipline, rules, and consistency. So, do you want to ride the emotional wave or play the long game with a strategy that has been consistently profitable year on year since 2016 (start of Eth - substantiated by backtest data). Average annual net profit (substantiated by the backtest) 196% (No Leverage) & 661% (3x leverage) This year (Jan 2023 to Sep/15th/2023) has already generated 45.21% (no leverage) 144.93% (3x leverage) in net profit. This strategy does Not re-paint, No-look ahead bias. and 100% forward tested. Tradingview has a default caution for strategies that use the multitimeframes data. This does not apply to this strategy as all calculations are based on closed bars. So how does it work? Postions are entered based on RSI Divergence on Higher Timeframes and confirmed by the ATR. Stop Loss and Trailing ATR-based Take Profit:The strategy incorporates a risk management mechanism with a built-in stop loss set at 8%. Additionally, it employs a trailing take profit mechanism based on ATR. This means that as the trade moves in the desired direction, the take profit level adjusts itself based on the current volatility, allowing for gains to be secured as the trend progresses. SMI-based Re-entry after Stop-out: Stochastic Momentum Index (SMI) is used as a re-entry signal if the trade is stopped out (i.e., the stop loss is triggered). This re-entry is contingent on higher timeframes and ATR still supporting the original trend, indicating that the initial stop-out may have been a false signal. Portfolio Reinvestment for Compound Growth: The strategy allocates 95% of the portfolio's capital to each trade. This approach maximizes the potential for compound growth, as a significant portion of the available capital is reinvested in each trade, provided that risk management rules are satisfied. This approach is appropriate for this strategy as strict risk management is applied and the winrate is almost 50% Accounting for Exchange Fees: Exchange fees, set at 0.1%, are factored into the strategy's calculations. This ensures that trading decisions take into account the cost of executing trades on the exchange. Avoiding Lookahead Bias and Repainting: The strategy is designed to prevent lookahead bias by making calculations based only on closed bars of price data. Lookahead bias occurs when future data is used to make past trading decisions, potentially leading to unrealistic expectations.
BITFINEX:ETHUSDEducation
by TradingAlgorithms
Tailoring Strategies for Different AssetsIn the world of trading automation, one size does not fit all. Different types of assets like cryptocurrencies and forex have unique properties that make them behave differently in the market. To maximize the potential of your trading automation, it’s essential to adapt your strategies to the specific ticker you’re trading. In this post, we’ll explore the differences between various types of assets and how you can optimize your automated trading strategies to achieve success. ➡️Crypto vs. Forex comparison⬅️ Crypto markets operate 24/7, while forex markets are open 24/5, making crypto trading potentially more demanding. The volatility in cryptocurrencies tends to be higher, with sudden price movements being more common. Forex markets generally have higher liquidity, meaning it is easier to enter and exit positions. Leverage in forex trading can be much higher compared to crypto trading, increasing both potential gains and losses. While forex markets are driven mainly by economic indicators, cryptocurrencies are more influenced by market sentiment and news events. Regulatory environments also differ, with forex markets being well-regulated and crypto markets having limited regulation. 📈Strategies for Forex, Indices, Major Cryptos, and Altcoins Given the differences between forex, indices, major cryptocurrencies, and altcoins, it’s important to have distinct settings and strategies for each. Here are some specific strategies and indicators that are often mentioned as being suitable for each type: 1. Forex Trading Strategies: Trend-following: Traders can utilize strategies like moving average crossovers, Parabolic SAR, or the MACD indicator to identify and follow trends in the forex market. Mean Reversion: This strategy is based on the idea that prices will eventually revert to their historical averages. Traders can use indicators like Bollinger Bands or the RSI to identify potential reversals. Support and Resistance: Traders can identify key price levels where the market is likely to reverse or continue its trend, using tools like horizontal support/resistance lines, Fibonacci retracements, or pivot points. 🤔Cryptocurrency Differences: BINANCE:BTCUSDT and BINANCE:ETHUSDT vs. Altcoins When trading cryptocurrencies, it’s essential to understand that major coins like Bitcoin (BTC) and Ethereum (ETH) behave differently than altcoins. This divergence can be attributed to factors like market capitalization, liquidity, and overall market sentiment. BTC and ETH typically have higher liquidity and lower volatility compared to altcoins, making them more predictable and easier to trade. Altcoins, on the other hand, can experience sudden price swings, making it crucial to adapt your trading strategies accordingly. 2. Major Cryptocurrency Strategies (BTC and ETH): Breakout Trading: Traders can use tools like Donchian Channels or trendlines to identify significant price levels where the market is likely to break out, either continuing the trend or reversing it. Momentum Strategies: By utilizing indicators like the Relative Strength Index (RSI), Stochastic Oscillator, or the Moving Average Convergence Divergence (MACD), traders can identify when the market has strong momentum and enter positions in the direction of the trend. Swing Trading: This strategy involves holding positions for several days to weeks, aiming to capture price movements within a larger trend. Traders can use indicators like moving averages or Fibonacci retracements to identify potential entry and exit points. 3. Altcoin Trading Strategies: High-Frequency Trading (HFT): This strategy involves entering and exiting positions quickly, seeking to profit from small price movements. Traders can use algorithms and tools like order book analysis, time and sales data, or market depth analysis to make rapid trading decisions. Arbitrage Strategies: Traders can take advantage of price discrepancies between different exchanges by simultaneously buying and selling the same asset. This strategy can be particularly effective in altcoin markets, where price differences between exchanges can be more pronounced. Technical Analysis: Similar to major cryptocurrencies, traders can use technical analysis tools like chart patterns, moving averages, or oscillators to identify potential trade setups in altcoin markets. However, due to the higher volatility and lower liquidity of altcoins, traders may need to adapt their strategies and risk management accordingly. 🤖Crypto Trading Automation: BTC Optimization and Hedge Mode When it comes to crypto trading automation, Bitcoin (BTC) is often considered the easiest to optimize. Leveraging hedge mode allows you to run multiple strategies on BTC simultaneously, increasing the potential for success. This feature enables traders to have several strategies running concurrently without interfering with each other’s open positions, allowing for a more diversified and potentially profitable trading experience. 😊Conclusion: Elevate Your Trading Game with The Right Automation Strategy The world of trading is as diverse as it is dynamic, with each asset class—be it forex, major cryptocurrencies, or altcoins—offering its own set of challenges and opportunities. The strategies you employ should be just as versatile, tailored to the unique characteristics of each market. With the power of TradingView's strategy development and the potential for seamless automation, you're not just participating in the market—you're mastering it. If you have any questions or need further insights on how to set up your automated trading system, don't hesitate to drop a comment below. We're here to help you navigate this exciting journey. Here's to smarter, more efficient trading. Cheers! 🥂
Education
by Tickerly
Optimizing Automated Trading Strategies for ProfitabilityAutomated trading strategies have the potential to be highly profitable if they are set up and optimized correctly. In this guide, we will provide you with essential advise on how to optimize your trading strategies for long-term profitability, ensuring that you can fully harness the power of trading automation platforms like Tickerly. Embracing optimization techniques can make a significant difference in your trading performance and help you to achieve your financial goals. Identifying a Profitable Entry Method The foundation of a successful automated trading strategy is a profitable entry method. Start by identifying entry signals that are profitable on their own, without any additional filtering. This will ensure that your strategy has a solid base to build upon. A profitable entry method can significantly improve the overall performance of your strategy, making it easier to achieve consistent returns over time. Choosing a Strategy Over an Indicator When possible, opt for a strategy rather than an indicator. Strategies allow you to backtest their performance, providing valuable insights into how they might perform in live trading. This information can help you fine-tune and optimize your strategy before automating it. Backtesting enables you to identify potential weaknesses in your strategy and make adjustments to improve its performance. Ensuring Stability in Core Entry Parameters When tweaking core entry parameters, small changes should not lead to a significant decrease in profitability. This is a sign of a robust strategy that can withstand minor fluctuations and remain profitable over the long term. Stability in core entry parameters can be crucial in ensuring that your strategy is not overly sensitive to market noise, which could lead to inconsistent results. Profitability Across Market Conditions A profitable automated trading strategy should be adaptable to various market conditions, including bull markets, bear markets, and ranging markets. This flexibility ensures that your strategy can consistently generate profits, regardless of the prevailing market sentiment. Developing a strategy that performs well in different market conditions can greatly improve your long-term trading success, as it minimizes the impact of unfavorable market phases on your performance. Exchange and Currency Pair Compatibility Your strategy should remain profitable when switching to a different exchange or moving between e.g. USDT and USD pairs. This demonstrates the robustness of your strategy and its ability to perform well across various trading environments. By ensuring compatibility across different exchanges and currency pairs, you can take advantage of diverse trading opportunities and further optimize your strategy’s performance. Profitability on Adjacent Timeframes A strong trading strategy should be profitable on adjacent timeframes. This is an indicator of its versatility and an assurance that it can adapt to changing market dynamics. By ensuring that your strategy performs well on multiple timeframes, you increase the likelihood of long-term success. Additionally, having a strategy that is profitable on various timeframes can help to diversify your trading approach, reducing the risk of overexposure to a single timeframe. Automating Your Strategy Finally, your strategy could be robust enough to trade automatically on Tickerly. Of course, you should continue to monitor its performance and make sure that it stays within the expected behavior. Do comment any questions or viewpoints you have on automated forex, futures or crypto trading
Education
by Tickerly
USDCAD SHORTCaught this entry about 5 pips late due to waiting for confirmation on 30 min candle, I’m expecting it to drop until news on 14th comes out this is not a long term hold AUG 13th max before closing positions i seen that right as 30m candle and 2 hours candle tapped liquidity block it immediately reject expecting a harsh drop after retracement keep stop tight on this one everything lines up 5min bearish candle 30min bearish candle 2hr bearish candle Take at own risk
Short
by Devstradez
1
XRP's Algo: A Recurring Pattern Unfolds to $160 XRP's Algo: Unfolding Recurring Patterns as 2023 Approaches the 60-Week Cycle End Introduction (7-10 minute read) XRP, the digital asset native to the Ripple network, has intrigued investors with its seemingly algorithmic price movements. Over the years, it has exhibited a striking tendency to replay the same market moves across different time frames, creating patterns that appear to repeat themselves with variations. This article aims to delve into XRP's algorithmic behavior, the recurrent patterns observed, and the significance of the 173-week and 60-week cycles in shaping its price trajectory. As we approach the end of the 60-week cycle in 2023, we will explore how XRP's historical patterns may guide investors' expectations. XRP's Algo Replay: A Tale of Recurring Patterns XRP's price history reveals a captivating phenomenon wherein it appears to follow an "algo replay." This notion suggests that XRP adheres to a discernible pattern, where market moves repeat over time, although the specific chart formations may differ. This algo replay has piqued the interest of investors and analysts, as it offers insights into potential future price behavior. The 173-Week Pump Phenomenon A remarkable aspect of XRP's algo replay is the occurrence of significant pumps at approximately 173-week intervals. This cyclical trend has been observed multiple times in the past, wherein XRP's price surges to new highs before experiencing periods of correction and consolidation. These pumps serve as critical inflection points in the asset's price trajectory. The 60-Week Cycle and the Bart Simpson Pattern Among the fascinating elements of XRP's algorithmic behavior is the existence of the 60-week cycle, which appears to influence market moves significantly. Notably, before the start of each 60-week cycle, XRP tends to exhibit a distinct pattern colloquially known as the "Bart Simpson" pattern. This peculiar formation resembles the head of the iconic cartoon character, characterized by a sharp upward spike, followed by an equally sharp downward move, forming a inverted "V" shape. Volatility and Shakeouts: Setting the Stage for Price Surge Following the emergence of the Bart Simpson pattern, XRP often experiences heightened volatility, leading to a price shakeout, affectionately known as "The Wise Owl Buy-In Period." During this phase, the price is deliberately pulled back sharply, causing uncertainty and fear among investors. This shakeout scenario leads some to sell off their positions, while others attempt to buy back in at lower prices. A few may become overly bearish, risking missing out on a quick recovery once the shakeout period subsides, which could span from 1 to 3 weeks. While exact dates remain uncertain, our speculative outlook foresees XRP reaching $24 around 11/20/23, with continued growth towards $160 by 7/8/24. As XRP's usage and adoption surge, we firmly believe it will surpass three digits in value and beyond. The future holds immense promise for this dynamic digital asset. "Dates may be subject to change, with a window of a few weeks to a month for flexibility. Please note that the exact dates are not fixed, and we are not providing specific deadlines." 2023: Approaching the End of the 60-Week Cycle - "The Reminder of the Wise Owl Buy-In" As we approach the end of the 60-week cycle in 2023, historical patterns indicate that we have already witnessed the emergence of the Bart Simpson pattern. Currently, we are experiencing heightened volatility and are approaching the potential shakeout scenario. If this pattern repeats, which is likely, we may observe a dip in XRP's price, possibly reaching around $0.35 or even $0.11. Such movement could trigger fear among a large majority of investors, leading to widespread selling. In these uncertain times, we remind you to always be a wise owl and be ready for anything. The Lawsuit Suppression and its Implications In December 2020, XRP faced a significant lawsuit, resulting in a period of price suppression that held back potential gains. Despite this legal challenge, XRP managed to produce a substantial pump, hinting at its resilience and potential for future growth. Decoding Crypto Moves: Unraveling the Enigma of Organic vs. Algorithmic Influence with Pre-Planned Excuses The cryptocurrency market's mysterious and volatile nature has given rise to intriguing conspiracy theories. One such theory questions whether price movements in the crypto market are driven organically or if they are a result of carefully orchestrated algorithms replaying the same patterns year after year. This section delves into the eerie concept of an "invisible" algo manipulating the market, with news events serving as mere excuses for its predetermined moves, and explores the implications for XRP's future. The "Invisible" Algo: A Crypto Enigma The notion of an "invisible" algo playing puppeteer in the crypto market is both captivating and unsettling. Skeptics suggest that recurring patterns observed in assets like XRP point to the presence of an underlying algorithm, meticulously executing trades to produce similar outcomes over time. According to this theory, the algo's influence is so apparent that it can even anticipate news events and use them as an excuse for its predetermined moves. The Uncanny Connection Between Past and Future Proponents of this theory argue that past price behavior holds clues to the future trajectory of cryptocurrencies. If historical patterns indeed foreshadow future moves, XRP's potential to soar to $160 or beyond becomes a chilling possibility. However, this scenario rests on the assumption that the alleged "invisible" algo will continue to replay the same patterns with eerie precision. Navigating the Fun and Fright of Cryptocurrency While the idea of an "invisible" algo dictating the crypto market's moves may sound like a creepy fun conspiracy, it remains a speculative theory without concrete evidence. The true nature of price movements in the cryptocurrency market is likely a complex interplay of algorithmic influences, news events, and various market forces. As investors navigate this mysterious realm, it is essential to remain open-minded, well-informed, and prepared for the unexpected. While past behavior can offer insights, the future of cryptocurrencies, including XRP, remains uncertain and subject to a multitude of factors. Embracing the thrilling and enigmatic nature of the crypto market may be the key to making sound investment decisions in this dynamic digital frontier. Conclusion XRP's algo replay, characterized by recurring patterns and cyclic price movements, has intrigued the investment community. The observation of the 173-week and 60-week cycles, along with the emergence of the Bart Simpson pattern and subsequent shakeouts, lends credence to the notion of XRP's algorithmic behavior. As 2023 nears the end of the 60-week cycle, investors should remain vigilant, considering historical patterns while evaluating their positions. However, it is crucial to remember that market dynamics can be unpredictable, and past performance may not always foreshadow future outcomes. As a reminder, this content is not financial advice, and we are not providing specific or concrete moon dates. Our analysis is based on past price movements and should be considered speculative in nature. I hope you enjoyed this read. Follow for more updates. Yours truly NeverWishing.
BITSTAMP:XRPUSDLong
by NeverWishing
7