algotraderxl
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Hello friends, the event we call Dump in the market is inevitable and difficult to catch. For this reason, I will try to explain how to catch these dumps using the Traderlands algo-trading platform (free). In this example, we will create a rule on the ARBUSDT pair. Let's proceed step by step.
Step 1:
Let's look at the ARB chart on Tradingview.
After September 10, there is a 15% drop.
Step 2:
Let's look at the ARB on the 1-hour chart.
There is a drawdown starting at 07:00 and notice the volume at the bottom.
Step 3:
Let's look at the 5 min chart for more detailed data.
The bearish bar that started at 07:20 had 47 times more volume than the average of the last 10 bars.
Step 4:
Formulating a strategy.
If the instant candle average on the 5 min chart is 5 times more than the average volume of the last 10 bars AND
If the candle's decline rate is even more than -0.5% on the 5 min chart
Suppose you have caught a dump.
It is very simple to set this up on Traderlands. This is how it works;
Step 5:
Let's calculate the exit point manually according to these conditions.
Looking at the 30 sec chart, the 5 min rules for which we set up the strategy will be recalculated for every 5 min. When we add up the volumes of 30 secs each in the 07:20 candle, we can see that ~3.84 M ARB volume was made in 3 min.
The 331k we set here is 5 times the average, well above the 1.6 M ARB volume. The exit price is estimated to be 0.8790.
On a daily scale;
As you can see, this strategy saved us from a loss of 0.8% instead of 15%. And Traderlands would have done it for us at 07:23 in the morning while we were sleeping.
This point can also be considered as a possible SHORT buy point.
Step 1:
Let's look at the ARB chart on Tradingview.
After September 10, there is a 15% drop.
Step 2:
Let's look at the ARB on the 1-hour chart.
There is a drawdown starting at 07:00 and notice the volume at the bottom.
Step 3:
Let's look at the 5 min chart for more detailed data.
The bearish bar that started at 07:20 had 47 times more volume than the average of the last 10 bars.
Step 4:
Formulating a strategy.
If the instant candle average on the 5 min chart is 5 times more than the average volume of the last 10 bars AND
If the candle's decline rate is even more than -0.5% on the 5 min chart
Suppose you have caught a dump.
It is very simple to set this up on Traderlands. This is how it works;
Step 5:
Let's calculate the exit point manually according to these conditions.
Looking at the 30 sec chart, the 5 min rules for which we set up the strategy will be recalculated for every 5 min. When we add up the volumes of 30 secs each in the 07:20 candle, we can see that ~3.84 M ARB volume was made in 3 min.
The 331k we set here is 5 times the average, well above the 1.6 M ARB volume. The exit price is estimated to be 0.8790.
On a daily scale;
As you can see, this strategy saved us from a loss of 0.8% instead of 15%. And Traderlands would have done it for us at 07:23 in the morning while we were sleeping.
This point can also be considered as a possible SHORT buy point.
