Hi everybody, and welcome to another video from Altrady.
In this video, I will show you how to use the crypto base scanner signals to trade manually in Altrady or set up a trading bot to do it automatically.
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What are crypto base scanner signals?
The crypto base scanner algorithm will automatically define
support levels and it will signal you every time that a price drops
significantly below this support level.
The strategy will teach you to start selling when the price goes back to the previous support level.
How do you seek these signals?
For that, you have to configure the crypto base scanner to get notifications.
Just go to the settings click on the bass scanner notification
rules, and you can configure the notification settings in the top part.
You can select the algorithm now if you're unfamiliar with the crypto base
scanner and the different algorithms then we suggest to just stick with the day trading algorithm.
Once you are a little bit more familiar with the crypto basics and the signals, you may be able to change this later.
To add a notification rule, click on the Add button and a new row will appear you can select the exchange and select the currencies that you want to be notified on.
You can also specify the daily volume that a market must have before receiving a signal from that market.
To specify when you want to be notified for a specific market, you can select the drop level.
If you're a beginner user of the crypto base scanner, we would suggest sticking with the median level. Later on in the video, we will explain a little more about the median level and how it will help you create more profitable trades.
Next, you can select where you want to be notified. You could choose to receive notifications on your mobile and desktop, once done, click the Save button, and you're all set.
You can now go back to the trading platform and select the basis
In the basis widget you will see the active tab that shows all the
markets that are currently trading below the base.
How to check your favorite market?
If you want to check how your favorite market is doing, but it's not listed on at the active tab, you can go to the exchanges tab and click the exchange.
You will see a list of all the markets and the information of their latest base once you have found your market you can click on it and
see the chart.
In the chart we have listed all the basis that the algorithm has found, you can see different colors for each base.
The strategy will teach us that we should always work off the latest base and once the base has been respected it should not be used again.
This means that the base will stay right after it's been respected even if
the price drops below the same base again.
Remember always to use the bases when they are green.
Besides the information in the chart we also have a base information widget. At the top of this widget, you can select the current algorithm. You can change these algorithms to see how the base has changed on the chart.
You can also use the arrow buttons to slide through the bases. You can see the information of the currently selected base.
You can identify the selected base by the highlighted base in the chart. The base will either be green highlighted if it's currently broken or it will be red highlighted once it's been respected.
Once you have selected the base, you can see the drop level in respect to the current price, and you can also see the base price and see how long it's been below that base.
The 90% respected in indicates how long it usually takes for the base to be respected.
For the market, we also show the median drop.
What is the Median Drop?
The median drop is also referred to as the average drop. It indicates how far the price usually drops below the base before it starts returning.
This median drop level is different for each market. We use this in the base notification settings to only notify us only when the market is significantly below the base to its previous base breaks.
This will ensure we don't get notified too early or too late. It also shows how many of the broken bases were respected.
In this case, 10 out of 11 bases were respected, and as you can see in the chart, only the latest base has not been respected yet.
This is still included in these statistics, and that also means that the success rate based on this number will never be a hundred percent if there is a broken base.
In the scatter chart below here you can see how long it usually takes for a base to be respected once it's dropped a certain percentage below the base.
As you can see if the price drops between five and ten percent you can expect that the base will be respected within a few hours today.
Now the price has dropped to about ten to twenty percent then you can expect that the price will take a few days before it returns back to the base.
To quickly see some of these statistics in the active base list we've also included these numbers into the list, as you can see right here. You can use this to scan the markets you're interested in. You can also use the filters to filter out the markets you're not interested in.
How do you trade base signals manually?
Once you receive an alert, you can go over to the market overview. You can evaluate the markets if you like the market and the way it's heading. Then, you can place your orders with a limit ladder using the
limit ladder function from Altrady.
This will quickly set up your layers and you can move on to the next market. Once your orders are filled, you can also use the limit ladder function to place your sell traits.
Let's look at an example of trade:
In this case, one by and one sell for a quick profit, so what happens is that you buy below the base. You start selling once it's almost back to base, and you rinse and repeat these trades until you get it a little bit more difficult traits.
With these simple traits, it's essential to control your greed because it's not guaranteed that all the bases will be respected in the end.
Also when you sell a little bit earlier, you're always ready for another drop. You can buy back what you sold to strengthen your position.
Another frequently used strategy is to keep your free coins to sell at a later date. This means that your out of the trade and the coins that you have left you can turn into a profit when the price is higher.
What you do when the price keeps dropping?
It's always possible that the price drops further than you thought initially. To minimize your risk you can apply dollar-cost averaging to make sure that you strengthen your position.
Dollar-cost averaging means that you buy multiple times on the way down to lower your breakeven point.
When you lower your breakeven point you get to profit much faster, please watch our video about the breakeven calculator in Altrady if
you want to learn more about the breakeven point and how to calculate it
within seconds in Altrady.
Sell On The Bounces
While you are lowering your breakeven point, it's also important to sell on every bounce.
Selling on the bounces reduces your risk because you already take back a little bit of your position that you can use to buy again on the next drop
We encourage traders to participate in the trades actively and make sure that you buy and sell on all the drops and bounces.
It's also crucial to stay patient and make sure that you enjoy the battle of the chart.
This will increase your chances of getting out in a profitable trade.
Remember that in the current market situation, it can take quite some time before you can turn the trade into the profit now.
Save Time With Trading Bots
If you don't have enough time to trade like a professional for this, the crypto base scanner is also connected to a few trading bots.
Trading bots will automatically buy the signals and apply dollar-cost averaging. They will also set to take profit orders for you while you are working sleeping or just enjoying life in general.
Trading using the trading bots also takes the emotion out of the trading because everything is done automatically based on a few settings.
How are signals generated for trading bots?
For most of the trading bots, the signal is created around the median drop of the market.
We also apply a minimum of one Bitcoin volume in the last 24 hours.
We also make sure that the markets have at least a success rate of 50%.
In this chart, you can see that the signal price was at minus 5% on the median drop,
For the take profit we use half the median and for the stop-loss we suggest to do at least four times the median drop.
Please note that not all trading bots support this suggestion, but you can usually configure a similar situation inside the trading bot itself.
So how do you configure the bots?
First, have to make sure that you subscribe to the crypto base scanner
In the settings of the trading bot we advise you to use the limit orders. Market orders are not suitable for the signals because in a high spread market, they can sometimes result in buying above the base and this
will eliminate your profit margin.
Because the strategy will tell you that you need to buy on panic drops, we suggest limiting the time of a buy order being open, usually fifteen to
thirty minutes should be enough now.
Don't be afraid to miss out on the trade because usually when there are a lot of signals, you can just jump on the next trade.
If the trading bot does not allow to take profit signal from the crypto base signal, then we suggest to
If you notice that your trades are usually turning into a profit, you may be able to increase it slightly. If you find that your trades are taking too long or get stuck, maybe you should lower it.
As our signals are generated on the way down wee, suggest using the dollar cost averaging or safety buys with at least two levels.
Just make sure that you spread the levels apart, for example, you can leave between three to five percent between all your buyes.
It's also essential to limit the number of concurrent positions. The amount of concurrent positions is heavily based on the trade size you have and your portfolio size.
You need to make sure that you can buy all the dca or safety buys for all your concurrent positions.
If you want more concurrent positions, you have to lower your trade size and if you want to have fewer concurrent positions, you can increase your trade size a little bit.
What about the stop-loss?
Using a stop-loss is fully automatic and has a deterministic outcome.
You can set the stop-loss for like fifteen percent, and you will either be in profit or lose fifteen percent.
The downside of this is that some sites will be sold at a loss, but a lot of times, when you trigger to stop-loss, it would have been a profitable trade in the end.
I trade with my trading bots because I use manual intervention, so I don't set up a stop loss. Still, when the trade doesn't work out, I will manually take over. I will add another manually selected DC a-level.
I also place another order on the first bounce up so I can sell with a quick
profit on my last buy and I can buy back what I've sold.
This will lower my breakeven point and I can get out earlier in the trade
The reason to do this manually is that it becomes very market-specific, and the trading bots just aren't sophisticated enough to make sure that they can read the order book and place the buyes stones at the correct levels. If you know how to trade manually, you can turn these trades into profit, and you don't have to take a loss
Just remember that this will take you away from the fully automated system. You might become emotional in the trades again.
What about the trade sizes in the concurrent positions?
It's essential to make sure that your trades get filled and if you have enough funds to buy all your DC a-levels.
You also need to control that your position doesn't grow too far for the market that you won't be able to sell it. You may also need to save some funds for manual intervention.
For example, if you have a portfolio of one bitcoin and set up a trade size of 0.1 Bitcoin with two DCA levels, your max position size will be point for Bitcoin.
This means that the total current positions can only be two if you lower your trade size 2.0 one Bitcoin at the same DCA levels then you can go into 25 concurrent positions. Now if you use manual intervention to rescue trades this can be a lot of trades to manage and it defeats using the trading bots in the first place.
Also think about that if you increase the dca levels you also increase your total position size and you need to lower your maximum concurrent positions. Before you start the trading bots make sure you've done the calculations correctly to avoid unnecessary losses.
We've created an interactive dashboard where you can see the information from our signals . If you want to know a little bit more about the results from the crypto base scanner algorithm, just look at the dashboard.
We will show you the total signals, the success rate if you make use to take profit of one percent or if you use to take profit of two percent or if you use the take profit of three percent.
You can also filter the results per exchange and per currency that we trade.
if you have any other questions about the results or the statistics feel free to leave a comment below or reach out to us on our social channels or via email support
Well, that's it for now. If you like this video, please click on the thumbs up. If you want to receive notifications of any future videos, make sure that you subscribed and hit the little notification item.
We also really encourage you to join us on discord where we have daily discussions with other traders about our manual trades or using the trading bots.
We hope to see you again on the next video.