Indicators¶
Technical Indicators are calculations done from observed data intended to summarize some aspect of the behaviour of a Symbol in a certain time frame.
Those calculations are used to “understand” the market behaviour, predict its future evolution and make trading decisions.
Once Klines have been received, they are processed to compute the indicators for presentation to the User.
The five core indicators of tradero are:
the Model Score (MS) (
model_score),Variation (last 24h) (VAR24h) (
last_variation_24h),Variation Range (last 24h) (VR24h) (
variation_range_24h),
Quote Asset Volume (24h)(VOL24h) (volume_quote_asset), and
Bundled Indicators Plugins¶
The indicators plugins to be considered can be controlled with the INDICATORS setting.
MACD/CG Indicator¶
The MACD/CG is a tradero-developed indicator aimed to detect “positive waves” of Symbols.
It uses the MACD Indicator with different default parameters (Binance’s short, middle, and long-term tendencies calculation) to spot when the short-term is above the middle-term and the middle-term is above the long-term tendency.
Under this situation, it is said that the Symbol is “Current[ly] Good” (CG) for a micro-gain trade (the strategy which motivated tradero).
In the tradero user interface, this can be spotted when both line and signal diff lines are positive (in green).
Note
There are slight differences in how Binance and this indicator calculate the tendencies, this may be spotted when the lines are close enough.
The parameters used for the MACD indicator can be set via the MACD_CG setting.
MACD_CG¶
Default: (25, 99, 7)
The a, b, c parameters for the MACD indicator (middle, long, short) tendencies.
STP (Short Term Prediction)¶
This indicator uses the Prediction Model (which has to be enabled) to predict the next STP_PERIODS.
It aims to provide an indicator of the intensity of the current tendency of the Symbol.
The AC value corresponds to the accumulated of the predicted variation in those periods.
Note
An AC of 10% should be read as “the price is highly likely to go up in the short term”, not “the price will increase 10% in the next 4 periods”.
STP_PERIODS¶
Default: 4
The amount of time intervals to be predicted.
SCG Indicator¶
The SCG (Simple Current Good) is a tradero-developed indicator aimed to detect “positive waves” of Symbols which aims to be the successor of MACD/CG.
It uses simple Moving Averages (MAs) with Binance’s short, middle, and long-term tendencies defaults (lines) to spot trading opportunities (“positive waves”).
While tracking these tendencies, it calculates their differences, variations, and status: Current Good (CG) and Early Onset (EO).
Current Good status is when short-term line one is above the middle which is above the long one.
The SCG index takes into account the number of periods the Symbol has been in CG and the distance of the middle line from the long one. The fewer periods and higher the distance, the higher the value. The index is zero when there is no CG status and provides an ordering of preference at the “earliest onset of the positive wave” under the status.
Early Onset status is when the short-term line one is only above the middle one (independently of the long-term line).
The SEO index (Simple Early Onset) is analogous to the SCG but only considers the short and middle-term relation.
The parameters used for the SCG indicator can be set via the SCG setting.
SCG¶
Default: (7, 25, 99)
The s, m, l parameters for the SCG indicator (middle, long, short) tendencies.
ATR Indicator¶
The ATR (Average True Range) is a technical analysis volatility indicator originally developed by J. Welles Wilder, Jr. for commodities. The indicator does not provide an indication of price trend, simply the degree of price volatility. The average true range is an N-period smoothed moving average (SMMA) of the true range values. Wilder recommended a 14-period smoothing [2].
The tradero implentation calculates the current value as a simple average of the last ATR periods each time interval, it does not update or produces a time series with a weighted average from the previouse value.
The parameters used for the ATR indicator can be set via the ATR setting.
ATR¶
Default: 14
The number of periods to be used for the ATR indicator.
Donchian Channel¶
The Donchian channel is an indicator used in market trading developed by Richard Donchian. It is formed by taking the highest high and the lowest low of the last n periods. The area between the high and the low is the channel for the period chosen. [3].
The tradero implentation also includes the break of the upper and lower bounds for the current time interval.
DC_PERIODS¶
Default: 20
The number of periods to be used for the Donchian channel.
DC_AMOUNT¶
Default: 4
The amount of time intervals (length of the time serie) to be calculated.
Internal Implementation¶
There are two ways of implementing indicators in tradero: into the core or via its plugin architecture [1].
References