WHAT IS A TRADING ALGORITHM?
An ‘algorithm’ is a mathematical equation that is written in a coding language. When placed online, it can trigger a bot to place buy and sell orders, on a trader’s behalf (when paired with the right exchange APIs and licenses) in order to trade in certain markets/ticker/currency symbols.
DO I NEED A BOT?
No. Traders who are only seeking online financial tools (to help them analyze their trading opportunities, so they can place trades manually) only need an algorithm and a platform to run the algorithm on… a ‘bot’ is only necessary if they want to automate the trading process.
WHAT PLATFORM WILL I USE?
HOW DO I ACCESS THE ALGORITHM ON TRADINGVIEW, ONCE I HAVE BEEN GRANTED ACCESS?
WARNING: After you load the algorithm, you will need to ‘refresh’ your screen, otherwise you will get an error saying you are not authorized to use the script. This is a known TradingView bug, and it has nothing to do with us. Just ‘refresh’.
*click to enlarge
HOW RISKY IS AUTOMATED TRADING?
Buyer Beware: Trading is full of risk, and despite what many newcomers believe, automating the process only increases your exposure to risk, not decrease it, and we are not liable for any losses incurred by using of the tools on this website, or the website of our partners, the same way we are not entitled to any of your gains.
WHAT ARE THE TYPES OF THINGS THAT CAN GO WRONG WHEN A TRADER DOESN’T PAY ATTENTION?
The term, ‘fully automated trading system’ should not be interpreted to mean: ‘a trading system that needs no oversight’… the exact same way ‘driver assist’ doesn’t mean the driver of a vehicle with this feature gets a green light to drive drunk and then fall asleep at the wheel.
Here is a non-inclusive list of things that can potentially happen when you turn your back on an automated trading system:
- The algorithm can tell the bot to go long on leverage, but the margin pool at the exchange is out of funds to lend the trader. So, for example, instead of closing the short and going long, it does nothing… because it doesn’t know it should try again with less leverage.
- TheTradingView.com Alerts might expire, without the trader remembering to reset it and the bot zigs one last time before never trading again.
- TradingView.com has problems, occasionally, in all sorts of weird ways, and doesn’t alway fire off alerts in a timely manner, despite what it said in the logs, and the bot is late to trade.
- The trader didn’t strip their syntax code of invisible characters, and have a weird invisible character that cause the API they are using to give an error.
- The firewall can stop signals from being sent and make the trader swear there is a ghost in the machine.
- The VPS software upgrades and the server gets restarted, but not the browser or bot software, leaving the last trades in play, and possibly going the wrong direction.
- The trader’s credit card fails, and any one of several pieces of the puzzle fails to respond, and taking the whole system down.
- a million other things.