All about RS232

Transcript

1. RS232 The only guide you’ll ever need to work it. Wednesday, May 8, 13
2. Installation • Open Chrome Extensions Manager. • Enable Developer Mode. • Point to the directory of the source code. • If extension crashes, disable and enable to get it working. Wednesday, May 8, 13
3. The Strategy used. • Moving Averages(MAs) simply take the last ‘x’ days of trading data and average it out. They help smooth price action and filter out the noise. • So a 200 day MA = sum of last 200 days worth day/200. • Simple right? Yup, its just too simple. Wednesday, May 8, 13
4. The trouble with MAs. • MAs are lagging the market as they rely on past data - cant be used for short term trading. • MAs by themselves are too simplistic for today’s markets. MAs by themselves provide no reliable indicator of a trend and must be coupled with other trend following techniques. Not a good first step. Wednesday, May 8, 13
5. Enter the EMA. • EMAs, to put it simply, are exponentially more reactive to market trends and hence they are a great way to do pick up trends and trading signals. • EMAs are a good enough first step for trend following. Wednesday, May 8, 13
6. The Golden Crossover. • To put it really simply, you take 2 EMAs. One long, one short. Wait for them to crossover at a point, called the Golden Crossover in trading. • The Golden Crossover is a perfect place to execute a trade as they signal the beginning of an upward or a downward trend. Wednesday, May 8, 13
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8. Okay, so what’s our strategy? • Firstly collect 144 hours worth of historical data from Mt.Gox and calculate EMA upto the latest hour. • To use EMAs to find a golden crossover...and since the Bitcoin markets are volatile, to put it politely, we use a backup strategy that prevents mad buying and selling. Using thresholds for trade. Wednesday, May 8, 13
9. I dont understand. • You only raise a buy/sell indicator only if the difference between EMA(long) - EMA(short) is above a threshold. If the market is too volatile a lot of crossovers could occur and fuck us over. This strategy saves our asses always. Its called a Bollinger Band. Wednesday, May 8, 13
10. Got it! Explain the app. Wednesday, May 8, 13
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12. Verbal exposition. • If there are 2 consecutive greens on the right it indicates a BUY. • If there are 2 consecutive reds on the far right it indicates a SELL. • If there are more than 2 consecutive rows of the same color it indicates an upward or downward trend(green for upward, red for downward.) Wednesday, May 8, 13
13. Making my own cocktail strategy. • You can see increase the number past entries to study trends. • Making the EMA values shorter will trigger more crossovers and vice versa. • Making the threshold smaller will lead to more BUY/SELL calls. Not healthy unless you drink Felix Felicis or you’ve a lot of money to splash around. Wednesday, May 8, 13
14. Backtesting. • To backtest the efficiency of the prices look no more than under the EMA columns. They reflect the price that the algorithm thinks is correct for the present moment. • EMA short and EMA long give slightly different values sometimes because of sudden, big price change. You can some open source Python libs too. :) Wednesday, May 8, 13
15. Call/mail if you still have questions. :) Wednesday, May 8, 13
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