〽️Strategy "Limit reversal"
Configuring the workspace
In the left panel of the terminal, click on "New tab".
In the window that opens, select the connection to the exchange, the trading instrument and in the section "DOM Modules" put a check mark next to "Tx", then click "Apply".
Next, you need to configure the module itself, for this, the display, time and histogram settings are located on the top of the module: we set the time range in seconds, which sets the size of the sliding window and the scale scale for building a histogram.
Using the example of BTCUSDT (the approximate significant volume at the same level is about 30-200 BTC at a price step of $ 1 on the Binance exchange - the value varies depending on volatility):
After setting up, the workspace should look like this:
Description of the trading strategy
Theory
The Tx module helps to determine:
When limit orders at the level are stronger than market orders.
The levels at which the price is held by limit orders.
There is a high interest in working out the level with limit orders (hidden influence on the market together with accumulation).
Idea
Turn on the Tx module and wait for the level where the market will turn around. Track the volume of limit orders that were executed (dark stripes against prices are historical highs). To adjust the module to a slightly larger volume. Because each tool has its own value in absolute terms of volume.
Entry points to the deal
When large volume spikes appear, the entry into the transaction is carried out in the direction of volume.
If the BID side is long, the ASK side is short.
In fact, this means a quick shift of positions.
A significant local surge in prices 61330-61350 on the Ask side, we go into the short.
What was on the chart at that moment:
Exit points from the deal
Option №1
When the opposite signal appears. That is, if there is a large spike on the ASK side, then we hold the deal until there is a significant spike (preferably more than the previous one) on the BID side.
Option №2
A significant one is selected (IMPORTANT: achievable) The price level is support or resistance. And we close the deal on it!
To determine clear levels, you can refer to the trading strategies of 1ex AI NEWS.
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 actions or omissions when using the described trading strategy. This strategy and its description are for informational purposes only. The information provided here is not an individual investment recommendation. News, articles, expert comments, research, forecasts and other information are presented without taking into account any specific investment profile, and the mentioned financial instruments or transactions may not correspond to the profitability expected by one or another user of the product, the investment horizon, as well as the acceptable risk of losses for one or another user of the product. Company 1EX is not responsible for possible losses in the event of transactions based on the described strategy or investing in financial instruments mentioned in this publication.
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