Trading Strategy «Shape»
This system is specially designed to evaluate cryptocurrency quotes – its work takes into account the basic subtleties of the formation of quotations of this type of trading assets. In general, the system is very simple and will be clear to trading newcomers. All the nuances of the system we describe in our material, with which we offer to get acquainted.
Technical strategy for trading on cryptocurrencies «Shape»
For effective fixed-term contracts trading in the market of crypto currency assets, an analysis system is needed that allows you to quickly and accurately respond to sharp changes in the direction of the asset price behavior trends. As an example, we offer a professional technique of technical analysis «Shape». This system is specially designed to evaluate cryptocurrency quotes – its work takes into account the basic subtleties of the formation of quotations of this type of trading assets. In general, the system is very simple and will be clear to trading newcomers. All the nuances of the system we describe in our material, with which we offer to get acquainted.
How does a system work?
The operation principle of the trading approach is based on the use of specialized indicator resources that are able to clearly track trend changes of the asset quotes. To start the evaluation of trading quotes, you need to install the following technical services on the crypto currency asset chart (choose the trading tool that is convenient for you):
- Lin Reg indicator (Liner Regression) – the specified service builds automatically a channel of price movements of the asset market, taking into account the average and extreme values of the asset value. Thus, we get a tool for tracking the dynamics of price reversals in the short term
- Aroon – for the service we set standard indicators of the market evaluation period. This service will indicate changes in the momentum of the movement of quotations in a certain direction. Thus, we will be able to track the areas with the minimum indicators of trend movement, which will talk about the subsequent reversal of the price.
- Fisher Transform is an oscillator that evaluates the possibility of trend reversals based on the calculation of a large volume of indicators. This makes it possible not only to respond quickly to the movements of quotations, but also allows you to use the service as an effective filter of system signals.
In that case, if your trading platform does not allow using such services of analysis, evaluation of quotations of the asset proposed to use additional professional resource tradingview.com, where you get access to schedules of assets and needed services for analysis. After the installation of the tools strategy to the minute chart of the asset you get the picture about this format:
To work off the technical signals of the system, you can use any trading service. We recommend you to work on the services of binary options companies that have the most transparent reputation and extensive experience in providing financial services for trading over-the-counter fixed-term contracts. In particular, it is possible to offer you as high quality service of company Binomo.
Strategy signal system
For trading rates UP on crypto currency assets, the system generates such a set of signals:
- On the chart the price pushed off the lower level of the channel up the Liner Regression indicator
- Technical service Aroon moving of red color crossed up a line with blue color
- Fisher Transform oscillator has generated a standard signal – the intersection and divergence of the moving up.
For trading rates DOWN on crypto currency assets, the system generates such a set of signals:
- On the chart, the price pushed off from the upper level of the channel down the Liner Regression indicator
- Technical service Aroon moving of red color has crossed the down line blue color
- The Fisher Transform oscillator generates the standard signal – intersection and divergence of moving down.
For maximum trading efficiency in the work on the system, it is necessary to use contracts, the repayment of which will be a time range from 5 minutes to 10 minutes. In this format of trading operations you will be able to work off very effectively the technical signals of the strategy and be able to achieve a rapid and stable growth of profits.
In terms of financial risk calculations for trading rates and loss reduction, the strategy has a quite standard set of rules. To minimize the risk indicators and of course to reduce losses, it is necessary to use rates with the level of funds involved not more than 5% of the total available capital. If bets with this ratio cannot be used due to insufficient funds in the account, we recommend working with contracts at the minimum available cost.