I have access to GDAX and I found this Depth chart that enables you (in some way) to check the momentum and the volume of demand and supply there is in the market. Tradingview also offers this chart.
This post explains how it works.
Lessons observing the chart
Lesson 1: there are positions that enter and exit in miliseconds
When you start watching this chart and see how the buy/sell forces drives the price, you will see a lot of positions entering and disappearing. The limited refresh of the screen just enable you to see flashes. The amount of people with machines procesing automatic positions and cancelling them depends on the coin.
Risk management is one of the key points when you trade in any market
I have to mature the risk management mindset and measure how the actions I perform are working with respect a level of exposure that I want to take.
Definition of level of exposure
- Perform operations between 0,5% and 2% of the value of your portfolio.
- Understand that for higher volability, the time-spam for trading has to be short, as the risk exposure is higher.
- When you define a move you have to define the amount or percentage that you expect to earn.
You will have to define a ratio of earnings/loss.
- This ratio should be between 2 – 3. This means that if you expect to with 20 points, you should stop when you are losing 10 points; this corresponds to a “2” ratio.
- A ratio close to “2” is more conservative. A ratio close to 3 is more risk.
- If you lose 20% of your portfolio, stop trading, think about what is happening with the right perspective. If you not do it, you have high percentage of losing all.
- A loss of 10% in a month is unacceptable, this is also an event that should trigger you to stop.
- Backtest, backtest and backtest is an exercise that really improve the results and reduce the risks.
- Review trading bias regulary.
- Define where to put the stop-loss.
- Do not touch the stop loss.
This is the second chapter of a learning process that started last September.
The second step is defined for the next 3 months, where the main goal is to define a specific strategy of quantitative trading and work on it with real money on crypto currency market.
Following the V2MOM model:
- Vision: Have a strategy running in crypto currency market.
- Values: have fun, learn a lot, build a team with Dani, do practices and more practices.
- Method: learn about quantitative trading principles and patterns, understand the basis of how blockchain markets work.
- Obstacles: Time.
- Measures: have an account with money and making short/long decisions. Have a lot of data related to the backtesting of different versions of a specific strategy. Accumulate a list of learned lessons and experiences for blockchain, quantitative trading and python.
Death line = March 2018
Results (April 1st, 2018)
Time to be accountable, let’s go…
- I have traded more than 50 times on LTCEUR and ETHEUR. It’s very
- When you lose, you learn something; when you win, you do not learn anything.
- We have added a thread of lessons learned in the real life of the trader with insights, habits, and other tips.
- We have learned about the need to keep perspective, read the news about the coins and respect the basic rules.
- We have failed in the basic habits and we have learned which triggers where no happening when they should happen (the more important one: set stop-loss).
- I’m still running long-shorts in minutes (3 minutes – 7 minutes), I need to start opening positions at hours rate and be able to put in action an strategy within 20 to 40 hours with an opened position. This is in some way as to play chess: quick games and long games.
We have learned how to set time-framing exercise before to start trading, draw supports and resistance lines, look for volumes, and other basic things. We need to organize them and value them properly, but they are in our mind already.
- I have read a book, Machine trading from Ernie Chang, that has enabled me to understand the next steps that we should take during the next quarters.
- I have learned a lot of basic concepts on Machine Learning, the basis. If tomorrow someone tell me to manage a project related to that, I know the basis and I will offer myself to manage it.
- I have learned about Quantopian
, basic concepts, how it works, how powerfull the environment is, and I have done a couple of backtests. There is a lot of information to read, basic statistics I still need to learn and the most important thing: I need to evolve a scientific mindset.
- I have learned about bias, doing operating on the real environment and reading “Thinking Basketball“; to see the things in a different context provides a valuable insight.
For next quarter I have some ideas, but I still have not been able to concrete what should be the right focus to cover.
My Prestashop’s admin user does not log in into the back-office, I have checked the password is right and I still cannot go in. The error message is:
“There is one error. the employee does not existor the password is wrong”
Reset Prestashop admin password
I have followed these steps recommended by different forums:
- Look in config/settings.inc.php file in your Prestashop directory and find out the _COOKIE_KEY_ value.
I have copied the value of the parameter: <_COOKIE_KEY_>.
- I have updated the entry with the following line:
UPDATE employee SET passwd = md5(“<_COOKIE_KEY_ value><yourNewPassword>”) WHERE email = “<youremailaddress>”;
This is not working to me, it still does not go in.
Enable error reporting
I have enabled error reporting on Prestashop. And the result is that there is a white screeen after I try to log in. So I have disable the error reporting.
Looking the things with the right perspective
Sometimes the smaller choices we make in daily life add up to patterns so routine, so familiar, that we fail to recognize them. Sometimes we are so busy making choices between what is right in front of us, that we fail to see the potential options that sit just outside of our view.
Pull out of your own life, Martin Scorsese-style, and taking a cinematic view of what is
happening – and what you might be missing.
Source: Health Brothers.
Fin de semana divertido, hasta encontrar la solución, que fue el cambio de las 2 electroválvulas del calentador.
No daba código de error y la temperatura no subía de 15º. Después de limpiar el chiclé, de revisar el cabezal de la bombona y que el agua subía a presión bien miramos para las electroválvulas.
Cambiamos primero una válvula (la de abajo con pestaña verde), y probamos. Esto no funcionó, con lo que pusimos de nuevo la original.
Cambiamos la electro-válvula de arriba (con pestaña roja), y probamos. Esto tampoco funcionó, con lo que pusimos la otra de abajo de nuevo.
Con las 2 electroválvulas nuevas si funcionó.
Los videos en youtube son muy didácticos.
I’m at the point where I can do backtesting with Python, and I need to accumulate knowledge about trading strategies, understand what they try to apply and be able to combine them on real cases I have.
This blog, Trading strategy guides, is a very good source of information well documented.
Fibonacci Trend Line Strategy- Simple Fibonacci Trading Strategy
Now I have to find the way to draw the fibonacci graph in python 🙂
There are thousand tools in the market to trade and perform backtesting.
It’s very social, they promote people to share their strategies, their findings etc. The difficult thing is to find people who really have the right criteria (this takes a lot of time).
Other detail I love is that you can add indicators from the fundamental analysis.
Meta Trader (download it)
There are so many scripts published on this platform. As a stand alone solution, when you want to draw lines, save tests… it’s more accurate that a web solution.
These slides explain the basis of a Microsoft Active Directory,