Hi everyone! It's about to be good night for me because I want Coffee, and I have a feeling I am going to get a barrage of push-notice alerts on my phone.... Unless the cats wake me up first. That worked good on 1 trade a few months back.

I'll start off with my favorite trading terminology and that is: "Taking Profits"

It doesn't have to be huge amounts, but enough to allow for a profitable re-entry strategy and begin compounding a "percentage of equity" with each trade.

The "DXY" is the US Dollar Index. This index represents the value of the dollar with 100 being the expected norm. Through crypto, many of us have learned about market caps and circulating supply vs total supply. The perceived value of most major assets are valued in the US Dollar.

The DXY is one of the primary correlation coefficients used by analysts and market makers

    If you ever need assistance, we have a repository of trading definitions and strategies in our "Trading and Mining Section" that I've highlighted, cheers!

      So We have most certainly learned something new today. Apparently, our current strategy of placing limit orders outside the chop zone of the price action is referred to as "Market Maker" (Picture from CryptoHopper)

      peter stickied the discussion.
      7 days later

      Back again with a link to a video that describes the power of Technical Analysis better than I can. These old lectures truly help to expose the essence of what we are trying to code.

      Way before Crypto, and before computers and graphing programs or calculators, Analysts used to hand draw their charts. Similar to Architects. In the same fashion; there are common templates or "triggers" that can be used to make smarter and faster decisions.

      With modern backtesting technologies, we can go through historical data to identify "perfect" trade opportunities, and then verify consistency across multiple markets and conditions.

      For those of us who have been in crypto for a few years, you will get a good laugh at the 17 minute mark. Fundamentals are important, but some technical conditions cannot not be stopped.

      One of the difficult parts of developing an automated strategy is making it work universally across all markets. There are almost an infinite number of variables that can influence different assets relative to others.

      The 2nd most difficult part is adjusting a model for multi-tiered end users. A strategy that works for a trader with $10,000 probably won't work as well with $100 once you start calculating fees, minimum purchase orders, and bid/ask variations in the depth charts/level 2.

      What does "Price Discovery" look like? Sol was a good example. It usually requires "breaking the algo" or pushing beyond the short triggers and resistance on multiple time frames. It looks like ALGO could put on a show for us pretty soon.

      When you hear people like Cathie Wood or Jim Cramer and other analysts saying that there are warning signs or that the triggers are flashing red... They are referring to highly engineered models that have been developed over decades.

      Crypto is not immune to the stock market algos, and the stock market is not immune to the crypto algos. On a long enough time line, they become exactly the same. SOL learned this. I think some of these new triggers were from the Vanguard S&P 500 ETF.
      VOO-DOO

      We recently discovered ways to code percentage based take profit triggers into Long-Buy orders. There is a chaotic crossing pattern coming up on SOL, so it will be interesting to see if we have already coded this instance for another trigger.

      Instead of the typical "candles & bars", we like to use OHLC4 on a baseline scale as our price indicator. This helps to buffer out unrealistic fills of highs and lows across multiple exchanges.

      The volume is already built into the buffering code.

      It looks like ICX wants to push higher, but its facing some resistance from the previous batch of take profits that would have created a "sell-wall" above the last peak. I don't normally buy crypto, but I might have to pick some up on coinbase. Not trading any of my Flux.

      Alexander a little late. The bar got raised.
      Part of my initial hypothesis involved manually drawing "linear regressions" with built-in "standard deviations" to identify "trend lines."

      Then it was a matter of 1,000's of mathematical experiments to get them to draw themselves.

        It looks like the Algos are going to push ALGO into another level of price discovery. It just needs a string push beyond the recent short triggers.

        SOL is making new All-time highs with a similar format. Most traders don't care for all of the fancy technicals, but the lines below the price action are going to be some of your "stop-loss raid" targets

        4 days later

        While digging through documentation on tradingview, I stumbled upon a rather simple format for coloring the candles relative to all of the underlying chaos.

        QNT had a nice little run. This is about the time when you do a little charting and figure out where to set some limit buy orders.

        Part of my initial inspiration for developing custom strategies was the "Wall Street Cheat Sheet".

        With a little bit of coding, we should be able to create the real thing except it will be more user friendly.

        Back again with an ICX/ETH Chart. Working on some new color themes, but also tuning bar colors to match the wall street cheat sheet.

        There was a big blue candle on BTC a few minutes ago. The longer time frames are showing a lot of downward momentum, so play it safe. I literally just coded these today, but we did get some experimental buy triggers popping off earlier, but I buffed it down a little bit.

        All of the lines in the background are part of one of the conditional buffers, but the color gradients are a good way to train yourself to buy low/sell high. You can also drag your RSI or MACD on top of your price action data to help provide a dynamic scaling effect.

        For the sake of the $1500 HNT/BTC experiment, I don't want Bitcoin to drop. But I really want to see the bars change color.

        Matt I just love everything that is possible through code. Bitcoin is still struggling on the 10-min. I don't know if they are ready for the 30-min+ charts. This is usually when "Denial" sets in. It's all about looking for opportunities amongst assets that you don't mind being stuck with.

          Going back to a little chaos where the Vwap drops down at the CBOE market open. The forced crossing patterns will trigger algos to buy. The percentages on the dow are hyper-conservative compared to crypto, so triggers are rare, but you can see the tiniest little blue bar at the bottom left

          The typical "momentum play" starts with 3 green candles as confirmation of direction, but Williams Fractals kick in after 5 bars

          "Correlations" to relavent stocks is key in measuring overall market trends. Michael Saylors strategies on MSTR are very interesting.

          What they do is buy puts, sell OTM call options all the way down to collect premium, and then sell the physical stock.

          To reverse it, they buys calls, sell out of the money puts and then use the free-premium to pump the stock.

          When people refer to "Dollar Cost Averaging," it refers to a strategy of dividing up orders into smaller amounts so you don't experience massive amounts of drawdown with a yolo-buy. The 3-min ICX-ETH pair is a good example. We've already seen what kind of volatility is possible with this pair.

            Back again with some "Correlation Coefficients"
            As long as Bitcoin is valued in the dollar, it wil have a direct correlation somewhere. Our "Blue Bars" are both acting as support and resistance on different timeframes of the DXY & BTC

            We have some experimental bar colors on ICX. "PURPLE". It usually mixes in with the blue, near the bottom, but it's supposed to identify extreme support or resistance. Most strategies pick up the stop loss on the way down and it just adds to the chaos so be careful. It's better to sell small amounts into resistance and regret taking more profits, than freaking out on the way down. It also depends on the exchange liquidity. Currently having that issue with market selling into nothing because the other players know the game too. Just set small little limit orders right below the depth chart bots. Kaboom goes the Poptriggers.