5 Key Technical Analysis Tools at Traderlands Workshop
Trading algorithms have become increasingly popular in recent years, and for good reason. They can help traders make informed decisions and improve their outcomes.
However, to be successful in algorithmic trading, it’s essential to have access to the right tools and resources. This is where Traderlands Workshop comes in.
Our platform is designed to make it easy for traders to get started and succeed with their algorithmic trading strategies.
One of the key features of Traderlands Workshop is the variety of technical analysis tools available to traders. These tools are designed to help traders shape and improve their strategies, regardless of market conditions.
In this blog post, we’ll explore the different technical analysis tools that traders can use in the Traderlands strategy creator tool to enhance their trading outcomes.
Change Over Time
As a trader, one of the most important tools in your arsenal is the ability to analyze how prices change in time. This is known as “Change Over Time” and it is a powerful tool that can help you create effective algorithmic trading strategies.
This tool can strengthen your strategy by providing additional support to the indicators you use while creating your enter and exit algorithms.
The Change Over Time tool is typically utilized to enhance the signals provided by other indicators. It serves as a confirmation tool, and therefore, relying solely on this indicator may not yield optimal results.
As an example, at Traderlands Workshop, the Change Over Time indicator can be employed as a supportive measure to verify a 5% price increase or decrease.
The rule can be incorporated into your entry algorithm as a supportive measure, or it can be integrated into both your entry and exit algorithms for a more comprehensive strategy.
Enter Algorithm Example at Strategy Creator
Exit Algorithm Example at Strategy Creator
Change From Open %
The Change From Open tool represents the percentage change in price from the opening of the candle based on the selected time frame. It can be employed as a confirmation rule in conjunction with indicator-based intersections when designing a trading strategy.
It helps prevent making trades based on fake signals from indicators. It does this by checking for sudden jumps or drops in the price at the time of the indicator’s signal, and also by looking at if the price move is bigger than expected.
It should be noted that this rule alone is not sufficient or efficient enough to create a robust trading strategy. Therefore, it is recommended to use it as an additional confirmation measure.
As an example, at Traderlands Workshop, this indicator can be used to verify a 5% price increase or decrease in the following way:
Enter Algorithm Example
Exit Algorithm Example
Change From Open ABS
It represents the absolute change in price from the opening of the candlestick within a timeframe.
This tool is useful for creating rules that can track rapid changes in prices, whether they go up or down.
It is not possible to say that this rule alone is sufficient or efficient to create a strategy. Therefore, it is useful to use it as an additional confirmation.
It can be used as a confirmation rule in addition to indicator-based intersections when used as a variable when designing strategy.
The example usage is as follows.
Performance
When devising a trading strategy, it is essential to not only consider the price of the chosen trading pair, but also to pay attention to trends in prices and assess the performance of the pair as a crucial variable. This can aid in confirming if the price movement is in line with the overall trend.
Enter Algorithm Example
Exit Algorithm Example
Price Limits
Price Limits are a set of rules that are used to compare the highest and lowest points in the price of a trading pair, particularly when looking at candle closing prices. They are useful as a comparison variable when creating a trading strategy.
Enter Algorithm Example
Exit Algorithm Example
Time Range
In Traderlands Workshop, there are time-based groups of rules that you can use when creating a strategy. One of these is the Time Range, which allows you to set extra rules by looking at the time intervals of the markets you want to trade.
Time Range allows you to focus on a specific time period on the chart of the trading pair that you’re creating a strategy.
Time Range Hour Of Day
Hour Of Day is a rule that can be used to set a confirmation and additional rule when creating a strategy. It works by looking at the trading hours of the markets where the trading pair is traded. Since cryptocurrency markets are open 24/7, Hour Of Day is used in Traderlands Workshop with a value between 0 (beginning of trading) and 23 (end of trading).
Time Range Day Of Week
Another rule group that can be used to filter by time is Time Range Day Of Week. It is used to select the days when the trading pair you’re creating a strategy for is open for trading.
Since cryptocurrency markets are open 7 days a week, this variable can be set to a value between 1 and 7 when used in Traderlands Workshop.
1 represents Monday, while 6 and 7 represent Saturday and Sunday, respectively. This allows strategy creators to exclude those days from trading if they think the trading pair behaves differently on specific days.
For example, if a strategy creator doesn’t want to open trades on weekends, they can add the numbers 6 and 7 to this rule set, which will prevent the strategy from trading even if indicators signal that it’s a good time to trade.
Time Range Day Of Month
This rule, Day Of Month, is useful when you want to make trades on a specific day of the month. It takes a value between 1 and 31. It can be used to determine the buying strategy on that specific day of the month.
For example, if this rule is set to 1, trades will be made on the first day of every month.
Time Range Month Of Year
The Month Of Year rule allows you to set conditions for when to buy, such as hourly, daily, or monthly. It takes a value between 1 and 12, where 1 represents January and 12 represents December.
You can use this rule to specify the months you want your strategy to run, or you can use it to exclude certain months from your strategy.
Volatility
Volatility is a commonly used rule by traders when creating a strategy. It measures how much the price of a trading pair changes. It’s often used as an extra confirmation within a set of rules, as it is not effective when used alone.
Enter Algorithm Example
Exit Algorithm Example
WARNING: The entry and exit strategies in the images are prepared ONLY for educational purposes to explain how indicators work. It does not guarantee any profit.
When creating an algorithmic trading strategy, a rule set is usually created by using more than one indicator.
Candlesticks (Mumlar)
When creating a strategy in Traderlands Workshop, traders can use various definitions for the candlesticks formed on the chart of the trading pair.
You can shape your strategy by using data such as the opening, closing, lowest point, and highest point of the candles on the chart for a certain time period (15 minutes, 1 hour, 1 day).
Additionally, you can use Candle Closing Prices, Candle Volume, and Candle Maturity as confirmation rules in your strategy.
Candle Maturity is a rule that is set as a percentage. According to this percentage, it’s checked if it meets the necessary conditions.
For example, if the candle maturity is set to less than 70% in a 1-hour period, it checks if the necessary conditions are met within 42 minutes, which represents 70 percent of 60 minutes.
If the candle maturity is set to be greater than 70% in the 1-hour period, the price change in the first 42 minutes is ignored and it’s checked if the conditions defined according to the last 18 minutes are met.