Why won’t my Bot Buy, or Sell?

[authored originally by Vae Victus 2018.01.22]
[updated for v2.0 2018.04.14]

Table of Contents

BUY USING MULTIPLE INDICATORS

V2.0 of ProfitTrailer introduced the ability to buy and sell with multiple indicators being used at the same time, and introduced several new indicators: RSI, STOCH, SHOCHRSI, MACD, BBWIDTH, and OBV. With multiple indicators, you are able to look at different aspects of the trend of a coin before deciding if you should buy or sell. Combining these indicators properly can improve your profitability by a large margin vs using a single indicator.

For example, several good indicator pairings are: LOWBB and RSI for buying, HIGHBB and RSI for selling, LOWBB and STOCH, HIGHBB and STOCH, etc.

Combining the indicators would look like the following example (using LOWBB and STOCH for example):

DEFAULT_A_buy_strategy = LOWBB
DEFAULT_A_buy_value = 0            - will become true when LOWBB is <= 0
DEFAULT_A_buy_value_limit = -10    - and will remain true while LOWBB is >= -10

#Note that the second strategy uses  "B" instead of "A". 
#You can have 5 indicators used at one time, so A through E. They do not need to be consecutive.
DEFAULT_B_buy_strategy = STOCH
DEFAULT_B_buy_value = 20          - will become true when STOCH <= 20
DEFAULT_B_buy_value_limit = 1     - and will remain true while STOCH >= 1




TYPE MATTERS

There are 4 main types of technical indicators: Trend, Momentum, Volatility, and Volume. The indicators in PT fall into these types as shown in the table below.

Trend SMA, EMA, MACD
Momentum RSI, STOCH
Volatility Bollinger Bands
Volume OBV

While you can do your own research on this topic, it is important to note that you should not try to combine strategies that are of the same type, as this creates the situation where you are getting confirmation from multiple indicators but they are all measuring the same thing.


UNDERSTANDING THE BUY

There are several factors that determine when a bot buys or sells. These are all set in the 3 main configuration files that deal with your buying and selling strategies: Indicators.properties, Pairs.properties, and DCA.properties.

PAIRS BUYING

Pairs settings drive the standard, non-DCA (Dollar Cost Averaging) buying. These settings are used when the coin doesn’t enter DCA or you are not using DCA.

Possible Buy Log

First, let’s discuss buying. The Possible Buy Log (PBL) is your indicator that your buy strategy is picking up potential candidates to buy. The different settings in the 3 files mentioned above control how the bot evaluates candidates. When you understand how you can tweak those settings, you will understand how to make the bot perform with more profitable behavior.

When the PBL filters out coins based on these settings. Any of these conditions will prevent a coin from appearing in the PBL:

  • min_buy_volume is not met
  • min_buy_price is not met
  • trading_enabled is false
  • Already own the coin
  • hidden_pairs will not be shown

In version 2.0, the PBL will look for ALL the buy indicators/strategies that you have set (up to 5 total) to be true before it will begin to consider buying a coin. Then it will begin trailing if you have trailing set. As you can see, with v2.0, there are even more hurdles to leap over before the bot will buy, which of course, is a good thing. The more criteria your buy meets, the better the buy should be to try to create an opportunity to create a profit in the future from that purchase.

You can choose to make the bot buy very quickly by creating very loose and aggressive buy settings, but remember that is defeating the purpose of being selective, and using a bot that can do all these calculations and checks for you without emotion.


The Main Setting: buy_value
DEFAULT_A_buy_value

The main way to get the bot to buy, especially when you just want to make sure it is working, is to manipulate the DEFAULT_A_buy_value setting along with your DEFAULT_A_buy_strategy.

For example, if you want a simple buy strategy that is easy to understand, you can use LOWBB. This strategy says “buy a coin when its price meets or is lower than the LOWBB value of the coin, adjusted by the DEFAULT_A_buy_value percentage.” The DEFAULT_A_buy_value default is 0, meaning buy the coin when the price is the same or lower than the LOWBB value.

But let’s say the market is hot, and all the coins are seeing strong gains. The price of a coin may rarely reach the LOWBB value, so you will want to increase the DEFAULT_A_buy_value to move the buy signal higher. You can do that by increasing the DEFAULT_A_buy_value a few percent at a time until you see the bot starting to buy. If you move the value to 15, you are telling the bot to buy a coin when its price is 15% ABOVE the LOWBB value.

(Remember that with LOWBB, a DEFAULT_A_buy_value = 50 means the middle of the BB bands (50%), and 100 means you would be at the HIGHBB band. So, the maximum that you would use in DEFAULT_A_buy_value would be 45%. This would be a very aggressive setting and should result in the bot buying many pairs. This is, however, not necessarily a good thing, but it gives you an example with which to work.)

Alternatively, if the market is down, and the coins have negative 24 hour averages, you would want to set your DEFAULT_A_buy_value to a number that is low, even below zero, like -5, -10, -15, -20. This says “do not buy until the price of the coin is 5% (10%, etc) BELOW the LOWBB value.

DEFAULT_trailing_buy

Another important setting is the DEFAULT_trailing_buy setting. This setting allows the bot to “trail” a price downward if it is not yet done dropping, to try and buy the coin at the lowest possible price it can. This action is why you sometimes don’t see the bot buy immediately when a price is below the LOWBB setting by your DEFAULT_A_buy_value percentage. Sometimes, it buys at a really low price for you, yaaa! But sometimes, if the price turns back up, it might not buy at all if the price jumps above the DEFAULT_A_buy_value setting. It can be confusing, but it is working in your favor.

(Important note: There are several other settings detailed in the sections below that will cause the bot to filter out certain purchases that might meet the price triggers. These include: having enough volume, having a small enough spread, having too many pairs already bought but not sold beyond your max pairs setting, etc. Be sure to read and understand how these settings affect the buying below.)

Understanding this basic concept of how the buy strategy and DEFAULT_A_buy_value work together, will help you conquer the crypto markets!

DCA BUYING

But wait, there's more! PT has a buying strategy that helps you if your coin purchase begins to drop in value. It is called Dollar Cost Averaging or DCA for short, and will buy more coins for you as the price drops in order to lower the average price that you must meet in order to sell for a profit, or to prevent a loss.

DCA is detailed in the DCA.properties section, but there are a couple of basic concepts to understand here.

DEFAULT_DCA_enabled

The first thing to understand is that you can turn DCA on in the Pairs file with the DEFAULT_DCA_enabled = true setting, or turn it off with “false”. It is probably best to turn it off at first.

When you turn it on, you need to understand that DCA can eat up a lot of your balance in a hurry if you have bought coins at too high a price and they begin to drop in value.

In v2.0 of the software, the amount of the coin being purchased in each DCA cycle can be set for each subsequent purchase using DCA level specific settings! By default the amount of coin to be purchased (DEFAULT_DCA_buy_percentage) is normally 100% of the current amount of the coin you hold. DCA purchasing can use a large amount of your balance very quickly, so you need to understand how to use and control it.

Example. If you have bought 0.002 BTC worth of ETH, and you let it DCA, the bot will purchase the following amounts, assuming that you have it set to buy 100% each time:

Initial Balance is 0.002,
1st DCA = 0.002, Total = 0.004 BTC
2nd DCA = 0.004, Total = 0.008 BTC
3rd DCA = 0.008, Total = 0.016 BTC
4th DCA = 0.016, Total = 0.032 BTC
5th DCA = 0.032, Total = 0.064 BTC
6TH DCA = 0.064, Total = 0.128 BTC

As you can see, within 6 purchases you went from a 0.002 initial buy to a 0.128 holding in a coin that is clearly still down below your purchase price. Be sure to read the DCA.properties wiki entry and use the settings that are there to limit how much DCA can use of your balance (max_cost, max_buy_times).

That said, it is a very effective tool to help you clear out your bags if you set it up properly, so don't be afraid of it, but be very wary!

Your goal in DCA is to get the average purchase price of the coin lower, so that when the price begins to go up, you reach a profitable price faster so that you can get rid of the coin without a loss. To do this, some people create very loose or aggressive buy settings so that the bot will buy fast if the coin is dropping. Others believe it is better to wait for the coin to drop and then stabilize before buying. There is not a lot of definitive data on which way works better, so experiment and research this topic before deciding on a strategy.

For more advanced information on DCA buying see DCA Buying


UNDERSTANDING THE SELL

The sell is just like the buy, and like the buy, can happen in two places: the Pairs side of the bot, and in the DCA side. The sell is driven by default, with a simple GAIN strategy. If you want to try to get more profit from your sells, you can use multiple indicators coupled together to try to ensure the price of the coin is at a true “high” point before selling. Remember that with multiple indicators for selling, you must use GAIN as the base strategy to set the minimum % profit gain.

If however you are using multiple indicators, like GAIN, HIGHBB and RSI together as your sell strategy, then all 3 of those indicators must evaluate to true before the bot will begin to try to sell. Then, if you are also using trailing_profit

PAIRS SELLING

DEFAULT_A_sell_value

For the strategy being used, this is the value to be used for the comparison to see if the indicator is true or not.

For example, with the GAIN strategy, this is the amount of profit you wish to see before the bot turns this indicator true. It is true when the price of the coin exceeds the bought price average by the amount indicated. For The actual setting is found in the Pairs.properties file.

Another example would be with RSI, the sell_value property would be the RSI level to attain before the RSI indicator is set to true.

DEFAULT_trailing_profit

But, there is a twist! Before executing the sell, the DEFAULT_trailing_profit setting will attempt to allow the bot to work the price upward if it is still going up before it sells. Like the DEFAULT_A_trailing_buy setting above, the profit setting tries to maximize your gains. You can read a Trailing scenario here in A Trailing Story.

DCA SELLING

Selling in DCA is similar to selling in Pairs. It uses a GAIN by itself, or multiple other indicators, and has the normal sell parameters already discussed in Pairs. Remember, they can be set differently than what you have in Pairs, and probably should be different.

Example - when you have a coin that has gone down in value, it is often wise to set the sell_value to a lower value than for a coin that you bought and never went down in price and thus never entered DCA. A coin that has been held at a loss is tying up your balance, and is not making you money. You may wish to get out of it quickly and at a lower profit margin than a purchase that is skyrocketing.

Remember: Your goal is NOT to make the highest profit on each trade. On the contrary, your goal is to NOT lose money in trading. If you can do that, then you win the game.


TOP

Why is my bot not buying? Why won't it sell? Why are there things in my Possible Buy Log (PBL), but it's not buying? Why is my PBL empty?

The PBL is populated based on several settings in your Pairs.configuration and Indicators.configuration files. One of the main factors in buying is:

Your Balance or your TCV (Total Current Value)

A zero or too low of a balance in your exchange and/or a TCV of zero will keep the bot from adding any coin pairs to your PBL. Additionally, if your balance is lower than your DEFAULT_initial_cost setting for the Pairs.properties file, or the DEFAULT_DCA_max_cost setting in your DCA.properties file, then the bot won't be able to buy.

Other factors that affect the buying activity are broken down by file:


Pairs Configuration:

Settings in this file that affect buying:

DEFAULT_trading_enabled = true

If this is “false” the bot will not populate the PBL


DEFAULT_sell_only_mode = false

If this is “true” the bot will not populate the PBL


max_trading_pairs

If the coin pairs in the Pairs log + the DCA log = max_trading_pairs, then the PBL will not be populated. If you want more in the PBL, increase this number.


DEFAULT_min_orderbook_volume_percentage = 150

If there is not enough trading volume in the current order books, it will not be considered in the PBL. This setting is measured in percentage, and says “If the volume available in the order book is above 150% of my desired trade amount, then execute the trade, otherwise, do not.” —-

DEFAULT_min_buy_volume = 500

If the volume in the base currency that you are using to trade (e.g. BTC, or USDT) is below the amount you set, the pair will not be included in the PBL. This keeps you from buying coins that are hard to get rid of when the price is fluctuating wildly due to low trading volume. You can't sell a coin if there is no one on the other side to buy it at your desired price. Having very low volume makes that problem more severe.


DEFAULT_min_buy_price = 0.00000500

If the price of the pair is below this minimum price, the pair will not be included in the PBL.

TOP


How different BUY strategy settings affect the PBL

Understanding the PBL (Possible Buy Log) and how different buy strategies affect it is key to understanding the bot.

Buying with LOWBB

For a simple example of this, we look at LOWBB, as it is a fairly straightforward strategy when used by itself.

DEFAULT_A_buy_strategy = LOWBB
DEFAULT_A_buy_value = X

When using LOWBB, the main setting that affects the PBL is DEFAULT_A_buy_value (which, remember, is a percentage). For a coin pair to be bought using LOWBB, the current price must be equal to or less than the value of the LOWBB band multiplied by (1 + DEFAULT_A_buy_value expressed as a percentage). So, in other words,

Negative buy_value

Buy Price = LOWBB - ((HIGHBB - LOWBB) * ABS(buy_value)/100)

Positive buy value

Buy Price = LOWBB + ((HIGHBB - LOWBB) * ABS(buy_value)/100)

So, for the PT bot to even being to consider a coin pair to be put on the PBL, it needs to be close to the Buy Price. How close the current price needs to be is a closely guarded secret, but it must be reasonably close, say within 10%.

Thus, as an example, if you have no items in the PBL, and your DEFAULT_A_buy_value is set to 0 (which would make the buy price be exactly the LOWBB value), and you look at your exchange and see that all the current coin pairs are up 10 or 20%, then your Buy Price calculation is not close enough to the current prices of all the coin pairs. To get the bot to move items into the PBL, the buy_value may need to be increased. (Again, remember, this is for an exercise only in understanding how the PBL works. If you artificially force the bot to buy a coin, that is not a strategy that is going to create profitable sales in the future. Get a strategy, and then stick to it. Be Patient!!)

What are normal values for DEFAULT_A_buy_value for LOWBB?
(Remember that “A” represents “A” through “E” where you can have up to 5 DEFAULT_X_buy_strategy settings).

Values normally range between -20 for very, very conservative (things are going down in the market and you want to make sure you don’t buy unless the coin is 20% below its normal LOWBB line), to 0 for somewhat conservative, to 10-15% for somewhat aggressive, to 25-45% for very aggressive.


Buying with HIGHBB

HIGHBB is the opposite of LOWBB. It's values range from 0 at the HIGHBB line, to 50 at the midpoint, to 100 at the LOWBB line. The bot will set HIGHBB indicator to “true” when the HIGHBB value is ⇐ than the DEFAULT_A_buy_value.

For example, if you want to set the HIGHBB buy_value to 20% away from the top, you would do the following:
DEFAULT_A_buy_strategy = HIGHBB
DEFAULT_A_buy_value = 20

If the buy_value is 20, and HIGHBB is = 9, then 9 ⇐ 20, and therefore the indicator is true.



Buying with SMA or EMA strategies (SMA/EMAGAIN, SMA/EMASPREAD, SMA/EMACROSS)

DEFAULT_A_buy_strategy = SMAGAIN (or SMASPREAD, SMACROSS)
DEFAULT_A_buy_value = X
DEFAULT_A_buy_value_limit = Y

Note: SMA and EMA buy strategies are very similar. Simple Moving Average and Exponential Moving Average are calculated somewhat differently, but the strategies trade very similarly, so we will not duplicate the explanations here. Just replace EMA with SMA in your strategy if you wish.

SMA Formula

Excerpt from Investopedia.com

Simple moving averages became the preferred method for tracking market prices because they are quick to calculate and easy to understand. Early market practitioners operated without the use of the sophisticated chart metrics in use today, so they relied primarily on market prices as their sole guides. They calculated market prices by hand, and graphed those prices to denote trends and market direction. This process was quite tedious, but proved quite profitable with confirmation of further studies.

To calculate a 10-day simple moving average, simply add the closing prices of the last 10 days and divide by 10. The 20-day moving average is calculated by adding the closing prices over a 20-day period and divide by 20, and so on.

EMA Formula

Excerpt from Investopedia.com

The exponential moving average is a refined and more commonly used moving average, thanks to earlier practitioners' experiments with the computer. The EMA focuses more on most recent prices rather than on a long series of data points, as the simple moving average required.

To Calculate an EMA:

  Current EMA = ((Price(current) - previous EMA)) X multiplier) + previous EMA.

The most important factor is the smoothing constant that = 2/(1+N) where N = the number of days.

  A 10-day EMA = 2/(1+10) = 0.1818

This means a 10-period EMA weights the most recent price 18.18%, a 20-day EMA 9.52% and 50-day EMA 3.92% weight on the most recent day. The EMA works by weighting the difference between the current period's price and the previous EMA, and adding the result to the previous EMA. The shorter the period, the more weight applied to the most recent price.


Buying with SMAGAIN

When using SMAGAIN, the main setting that affects the PBL is DEFAULT_A_buy_value (which, remember, is a percentage). For a coin pair to be bought using SMAGAIN, the current price must be equal to or less than the value of the lower SMA band multiplied by (1 + DEFAULT_A_buy_value expressed as a percentage). So, in other words:

  Buy Price < = Lower SMA value * (1 + DEFAULT_A_buy_value/100)

What are normal values for DEFAULT_A_buy_value for SMAGAIN?
Values normally range between -2 for very, very conservative (things are going down in the market and you want to make sure you don’t buy unless the coin is 2% below the low SMA line), to 0 for somewhat conservative, to 1-1.5% for somewhat aggressive, to 2% for very aggressive.

DEFAULT_A_buy_value_limit in SMAGAIN puts a lower limit on your DEFAULT_A_buy_value setting so that you will not, for example, go below -X% of the low SMA line. See Buy & Sell Strategies for details on this setting, but it will affect PBL if your coin pair price is below that limit.


Buying with SMASPREAD

This is similar to SMAGAIN, but the DEFAULT_A_buy_value is a percentage spread between the fast and slow SMA lines. If your coin pairs are not populating the PBL, consider the current spread of the SMA lines, and adjust your DEFAULT_A_buy_value accordingly.


Buying with SMACROSS

Buying with SMACROSS is similar to SMAGAIN, but the two SMA lines must have crossed within the last SMA_cross_candles (set in Indicators.configuration) value, minus one candle (e.g. if SMA_cross_candles is 5, then the cross must have occurred within the last 4 candles). In addition, the current value of the coin must be below the lower SMA line by DEFAULT_A_buy_value % (again, similar to SMAGAIN explained above and in Buy & Sell Strategies.

Thus if your PBL is not being populated, adjust both your SMA_cross_candles value (in Indicators.configuration file) and your DEFAULT_A_buy_value in Pairs.configuration.



Buying with LOSS strategy

Buying with LOSS says that to buy, the current coin pair price must be equal to or below DEFAULT_A_buy_value loss % of the coin pair within the last 24 hours. Thus, the buy price is calculated:

  Buy Price < = Current Coin Price * (1 - ABS[DEFAULT_A_buy_value/100]) < DEFAULT_A_buy_value_limit   

The PBL will not be populated with possibly buys if they are not near the Buy Price calculated above. If you are not getting PBL listings, try adjusting the DEFAULT_A_buy_value closer to 0, to allow for a smaller loss.

Normal Values for DEFAULT_A_buy_value with LOSS
0 is the lowest possible value. Using 0 says that the coin should be purchased if the current value of the coin is equal to or less than the loss on that coin in the past 24 hours. If that coin is up in price in the past 24 hours, therefore, it will not be considered for the PBL unless that gain is close to zero. Any value greater than 0 is more conservative.



Buying with RSI strategy

The Relative Strength Index is a momentum oscillator that measures the speed and change of price movements. It is a commonly used and very popular indicator and works well when paired with Bollinger Bands. The default and typically used RSI_length for RSI is 14, lowering increases sensitivity, raising decreases it. RSI is typically considered overbought when above 70 and oversold when below 30.

More can be learned about this indicator here: http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:relative_strength_index_rsi

When buying with RSI, the buy_value must be less or equal to calculated RSI.

The comparison for the RSI strategy is: “DEFAULT_A_buy_value < = RSI < DEFAULT_A_buy_value_limit”

Normal Values for RSI
To buy with RSI, normal values are 30 or less. This can be adjusted up or down based on your risk tolerance. Lower is more conservative, higher is more aggressive.



Buying with STOCH strategy

A summary definition from this at StockCharts.com (there is a great deal of in depth information in this article):

The Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. STOCH follows the speed or the momentum of price. As a rule, the momentum changes direction before price. STOCH is also used to identify bull and bear set-ups to anticipate a future reversal. Because the Stochastic Oscillator is range bound, is also useful for identifying overbought and oversold levels.

When buying with STOCH, the buy_value must be equal to or less than the value of the calculated STOCH.

The comparison for the STOCH strategy is: “DEFAULT_A_buy_value < = STOCH < DEFAULT_A_buy_value_limit”

Normal Values for STOCH
To buy with STOCH, max and min values are between 0 and 100, as it is expressed as a percentage. Normal values for judging oversold is 20 and overbought is 80. A buy value of 20 can be adjusted up or down based on your risk tolerance. For the buy , lower is more conservative, higher is more aggressive.



Buying with STOCHRSI strategy

From this article on StockCharts.com (much more info here, please read):

StochRSI is an oscillator that measures the level of RSI relative to its high-low range over a set time period. StochRSI applies the Stochastics formula to RSI values, instead of price values. This makes it an indicator of an indicator. The result is an oscillator that fluctuates between 0 and 1.

Traders looking to enter a stock based on an overbought or oversold reading in RSI might find themselves continuously on the sidelines. Chande and Kroll developed StochRSI to increase sensitivity and generate more overbought/oversold signals. A move above 0.80 is considered overbought, while a move below 0.20 is considered oversold. Second, it can be used to identify the short-term trend.

When buying with STOCHRSI, the buy_value must be equal to or less than the value of the calculated STOCHRSI.

The comparison for the STOCHRSI strategy is: “DEFAULT_A_buy_value < = STOCHRSI < DEFAULT_A_buy_value_limit”

Normal Values for STOCHRSI
To buy with STOCHRSI, max and min values are between 0 and 1. Normal values for judging oversold is 0.20 and overbought is 0.80. A buy value of 0.20 can be adjusted up or down based on your risk tolerance. For the buy , lower is more conservative, higher is more aggressive.



Buying with MACD strategy

MACD becomes true based on the comparison below.

The comparison for MACD strategy comparison is

If buy_value >= 0
  true when: DEFAULT_A_buy_value < MACD < DEFAULT_A_buy_value_limit
if buy_value < 0
  true when: DEFAULT_A_buy_value > MACD > DEFAULT_A_buy_value_limit

Normal Values for MACD
Because MACD is unbound, it is difficult to provide “normal” values in the current implementation of this strategy. You can test the values for each coin by using TradingView.com to model the behavior.

It is recommended that you combine MACD with RSI, STOCH, or STOCHRSI as a verification of the signal.



Buying with BBWIDTH strategy

When buying with BBWIDTH, the buy_value must be less or equal to calculated BBWIDTH.

The comparison for BBWIDTH strategy is: “DEFAULT_A_buy_value < = BBWIDTH < DEFAULT_A_buy_value_limit”

Normal Values for BBWIDTH
To buy with BBWIDTH, normal values are 30 or less. This can be adjusted up or down based on your risk tolerance. Lower is more conservative, higher is more aggressive. You will likely need to adjust BBWIDTH buy_values per coin. You can test the values for each coin by using TradingView.com to model the behavior.

BBWIDTH is not a good stand alone indicator, and should be combined with other indicators like RSI, STOCH, STOCHRSI, etc.

From this article at StockCharts.com (much more info here, please read):

Bollinger BandWidth is an indicator derived from Bollinger Bands.

BandWidth measures the percentage difference between the upper band and the lower band. BandWidth decreases as Bollinger Bands narrow and increases as Bollinger Bands widen. Because Bollinger Bands are based on the standard deviation, falling BandWidth reflects decreasing volatility and rising BandWidth reflects increasing volatility.

Bollinger Bands consist of a middle band with two outer bands. The middle band is a simple moving average usually set at 20 periods. The outer bands are usually set 2 standard deviations above and below the middle band. Settings can be adjusted to suit the characteristics of particular securities or trading styles.

Bollinger BandWidth is best known for identifying The Squeeze. This occurs when volatility falls to a very low level, as evidenced by the narrowing bands. The upper and lower bands are based on the standard deviation, which is a measure of volatility. The bands narrow as price flattens or moves within a relatively narrow range. The theory is that periods of low volatility are followed by periods of high volatility. Relatively narrow BandWidth (a.k.a. the Squeeze) can foreshadow a significant advance or decline. After a Squeeze, a price surge and subsequent band break signal the start of a new move. A new advance starts with a Squeeze and subsequent break above the upper band. A new decline starts with a Squeeze and subsequent break below the lower band.

Using BBWIDTH with HIGHBB, where the coin breaks the upper band is a good possible use of this indicator.



Buying with OBV strategy

When buying with OBV, the buy_value must be less or equal to calculated OBV.

The comparison for OBV strategy is: “DEFAULT_A_buy_value < = OBV < DEFAULT_A_buy_value_limit”

Normal Values for OBV
OBV is an unbound number, so “normal” is not definable. OBV values can be modeled on TradingView.com so that you can understand and determine your own “good” values to use for this indicator.

OBV is not a good stand alone indicator, and should be combined with other indicators like RSI, STOCH, STOCHRSI, etc.

On Balance Volume (OBV) measures buying and selling pressure as a cumulative indicator that adds volume on up days and subtracts volume on down days. It was one of the first indicators to measure positive and negative volume flow. Chartists can look for divergences between OBV and price to predict price movements or use OBV to confirm price trends.

OBV for PT is calculated as the difference between the first volume amount captured (from OBV_length periods), and the signal candle (from OBV_signal), in percentage.

In PT, only the past 500 candles of volume are available, so OBV_length must be less than 500 (499 max).

TOP



How Indicators Configuration affect the PBL

The following settings affect the PBL.

All of the items in the indicators configuration affect the PBL. As you change the settings, they either make the reactions of the bot more or less aggressive. Bascially, the longer the period, or the length, or the amount of time for the signal settings, the less aggressive/more conservative the bot will be. The opposite is true when the settings are shorter - the bot will calculate values with more volatility and thus the bot will react more aggressively.

Smoother is better, but there are recommended settings that are the “sweet” spot for most of these strategies. If you are not sure, use the default. Looking up these strategies on the popular investing education websites will normally discuss in much better detail how to change the length of these settings in different situations.

Look to sites like Investopedia.com, StockCharts.com, and BabyPips.com for good guidance. Many others exist as well.

TOP

Enter your comment:
 
  • buy_and_sell_logic.txt
  • Last modified: 8 weeks ago
  • by sgtbatten