Goomboo's Journal - page 31. | Bitcointalksearch.org

Crypt_Current

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Shame on everything; regret nothing.

Quote from: SkRRJyTC on May 07, 2013, 06:49:09 AM

Quote from: Mahn on May 07, 2013, 06:42:39 AM

Can someone explain, for a non-trader, what do these EMAs stand for? Why 10 and 21 and not 14 and 47? Just curious, I've been watching these averages for the past few days and the accuracy at which they predict where the prices are going next is pretty striking.

Its a moving average from the last X periods where the most recent data is weighted more heavily.

http://www.investopedia.com/terms/e/ema.asp

Great answer on the first, least important part of the question.
The SECOND, arguably more important part, is WHY those PARTICULAR numbers.

The answer is so that Goomboo knows how everyone is trading and can adjust his own trades accordingly.

SkRRJyTC

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Quote from: Mahn on May 07, 2013, 06:42:39 AM

Can someone explain, for a non-trader, what do these EMAs stand for? Why 10 and 21 and not 14 and 47? Just curious, I've been watching these averages for the past few days and the accuracy at which they predict where the prices are going next is pretty striking.

Its a moving average from the last X periods where the most recent data is weighted more heavily.

http://www.investopedia.com/terms/e/ema.asp

Mahn

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Can someone explain, for a non-trader, what do these EMAs stand for? Why 10 and 21 and not 14 and 47? Just curious, I've been watching these averages for the past few days and the accuracy at which they predict where the prices are going next is pretty striking.

ErebusBat

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I am the one who knocks

You sir get +1 internets for using the term hysteresis

Ichthyo

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Quote from: Frozenlock on April 25, 2013, 05:19:32 PM

In addition, today too might have been a false signal. We'll see soon.

If you're concerned about false signals -- to be precise, such a market following system doesn't know false signals. But the trading fees and your actual reaction time can be a problem. Basically I see two approaches:

Either you combine it with a bit of common sense, i.e. you just watch out for sideways movement and require a real breakout to flip sides

Or, if you want a mechanical method, e.g. for programming a bot, then I'd use the amount of the trading fees to define some kind of hysteresis; require a move at least by the fee-% before considering the next signal.

ScrapOfCat

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I'm beginning to have the distinct impression that soon, I will owe Goomboo a tip Grin

seleme

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cheers, i'll look at that too

dandirk

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I would look at using the MACD and RSI indicators along with EMA. They aren't perfect but will give you a few additional points to confirm a decision. MACD will usually signal a move a bit earlier then the EMAs but it also throws more false signals on side-ways movement.

seleme

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Quote from: dandirk on April 25, 2013, 05:31:32 PM

Quote from: seleme on April 25, 2013, 05:21:20 PM

Bitcoin market is too crazy for this system. It does look good for risk management and as safe as possible trading but it's way too slow for crazy ups and downs of bitcoin.

If you are looking to day trade yes I would agree, it is difficult enough and you really need those tight margins to profit (if at all). But as a weekly trader it is pretty good, you do just have to watch out for sideways movement.

There is a trading bot based on this system on chrome store... you can tweak the sensitivity if you are worried about the sideways movement but you will loose a little in inefficiency.

Yep, it's fairly safe one and cuts lot of risks. I'd say it's one for people who have nice amount of coins and looks to add some interest on them. I'm not one of those, I have very few coins and I have to be more aggressive and have risky approach if I'm ever to possibly reach a position where I'd be good enough to load my coins and hold. I'm nowhere near close of that so it's to be aggressive trying to do it or lose all. I haven't invested what I'm not ready to lose so I am ready for all options.

Still, this is useful even for me as it gives some insight early enough.

dandirk

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Quote from: seleme on April 25, 2013, 05:21:20 PM

Bitcoin market is too crazy for this system. It does look good for risk management and as safe as possible trading but it's way too slow for crazy ups and downs of bitcoin.

If you are looking to day trade yes I would agree, it is difficult enough and you really need those tight margins to profit (if at all). But as a weekly trader it is pretty good, you do just have to watch out for sideways movement.

There is a trading bot based on this system on chrome store... you can tweak the sensitivity if you are worried about the sideways movement but you will loose a little in inefficiency.

seleme

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Bitcoin market is too crazy for this system. It does look good for risk management and as safe as possible trading but it's way too slow for crazy ups and downs of bitcoin.

Frozenlock

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In addition, today too might have been a false signal. We'll see soon.

Frozenlock

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Look between 21-23rd.

dandirk

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Quote from: Frozenlock on April 23, 2013, 07:29:48 PM

Quote from: Goomboo on April 23, 2013, 07:26:50 PM

It would seem that even in such a small market as BTC, mechanically profiting from the trend is viable.

Or not... the last few days were terrible. So many false signals. Embarrassed

What are you talking about? Virtually every scale I looked at has been buy and hold for a few days using this method... If you went by the suggested scale, you would buy in around 125 and sold at 155... Seems like a good trade. There wasn't even any confusing overlap of sideways action with the 2 indicators, you do get more of those with 10 day/1hour scales. At that point I just shorten the timeframe a bit...

elux

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Quote from: seleme on April 25, 2013, 12:49:16 PM

looks like we're minutes from crossover

seleme

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Quote from: AmazonStuff on April 25, 2013, 02:26:01 PM

And now we could expect Goomboo traders...

not that we would mind that though

AmazonStuff

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And now we could expect Goomboo traders...

seleme

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yeah, it's postponed a bit but I guess it's coming, looks like up trend is bit exhausted unless some other big buys jump in.

elux

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Postponed for an hour by a single limit order cleaning out the asks all the way up to 157, about two minutes before the hour.

That single trade avoided a massive red candle on the hourly. (Well below the hourly averages.) Painting the tape much?

seleme

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looks like we're minutes from crossover

Topic: Goomboo's Journal - page 31. (Read 281462 times)