🔋Strategy "Rebalancing"
Last updated
Last updated
Step 1. Go to "Add Widget" and open the Trading View tab.
Step 2. In the Trading View tab, select the trading instrument and the timeframe of interest.
Step 3. Open the "1EX Indicators" and turn on the "Balance indicator", then select the Rolling period
IMPORTANT!!!
The "Rolling period" field is the time interval for which the indicator calculates a certain value.
To get better results, you need to choose a period that will be a multiple of 20-50 times your working timeframe on the instrument chart. Lower multiplicity means higher sensitivity, higher multiplicity means lower sensitivity.
Example: TF = 5 minutes, Period = 4 hours (48 candles of 5 minutes each).
We get such a workspace window:
The value of the indicator lines:
Green line - relative value of the dominance of green candles (upward dynamics).
Red line - relative magnitude of the dominance of red candlesticks (downward dynamics).
Description of the trading strategy!!!!!
Theory: the price very often reacts to the true level of the maximum horizontal volume, and this concentrated volume, in turn, sets the true movement of the asset and subsequently is the level of resistance and support.
It is necessary to find a situation in which there was a restoration of equality of forces and at the same moment the maximum volume is concentrated. In this case, you can look for joining one or another position, since after the appearance of this situation, there is a directional movement in one direction or another.
On the balance indicator, we find an interval, that is, two points: the first point is the beginning of the appearance of an imbalance (point A), the second point is a complete recovery after an imbalance (point B).
At this interval (AB), we apply the tool "Fixed Range Volume Profile" (horizontal volume), which is located on the left side of the panel of the graph window.
We find a situation in which the current price will be equal to the maximum horizontal volume (the red line of the horizontal volume).
We highlight the value area with horizontal lines as shown in the screenshot below.
The Value Area is the area where the main array of volumes is concentrated, as a rule, it is 70% of the total amount of volumes.
Next, we wait for a full-fledged exit from the value area in one direction or another (preferably with ~ 5-7 candlesticks fixed).
After the breakdown, we enter the transaction from the nearest border of the value area.
Option №1:
Fix on overcoming the maximum that was formed after the breakdown.
Trading result in 4 days = +3.58% excluding leverage.
Option №2:
Mathematical fixing by the risk/profit ratio of 1 to 2.
Trading result in 4 days = +4.32% excluding leverage.
CONCLUSIONS:
You can use this strategy both independently and as one of the filters within a variety of trading strategies used by traders.
IMPORTANT! Trading involves risks. The user is solely responsible for their actions or inactions when using the described trading strategy. The strategy and its description are for informational purposes only. The information provided here does not constitute personalized investment advice. News, articles, expert comments, research, forecasts, and other information are presented without considering any specific investment profile, and the financial instruments or operations mentioned may not align with the expected returns, investment horizon, or acceptable risk levels for any particular user. Company 1EX is not responsible for any potential losses resulting from trades based on the described strategy or investments in the financial instruments mentioned in this publication.
