README Documentation (updated often): https://bit.ly/41FPceY
In this video, we are going to talk about what to do when the price changes and how to know what the price is going to do. So let’s see what the price did in the last 24 hours. If you have seen my last video, you know that I said that it’s possible that we are running into a new trend change. And indeed, the price has crossed the two moving averages, so we have no new trades. And if we zoom into the chart, you can see that so far the uptrend is still existing as the green moving average is above the red moving average. So it might be possible that the price will go up again, or maybe it will go down. And then we need to wait until we see a crossover. That would confirm that the trend is broken. But before that happens, we will not see any new positions here, and that’s indeed hard for most traders to watch a system not doing anything. But actually, we all know what the price is going to do. It’s not very hard to understand. It can go up, it can go down, or it can go sideways. So basically, what we need to do is to make rules about how the system should behave for each of these possibilities. In my case, I have a strict rule, and that rule says that the price needs to be on the correct side of the trend. And if it is not, it will not open any new positions. The exception is in cases like this one, when we are right inside of a trading series, it would continue with this series until we have a profit and then stop to trade. If your system is not able to do that, automatically, you could also click on the button here and disallow automated trading. And if you ask yourself how these two moving averages are defined, well, the green one is for 1,000 candles and the red one is for 1,100 candles. So this is a very long-term trend. If you prefer short-time trends, you could either change the number of candles that are calculated by just changing the period setting here. Or you could pick a different time frame, like one minute. But I believe that the hourly chart is watched by most traders, and I know what my system is going to do in each of the possible cases. If the price goes down, it will wait for a crossover and then check if the minimal distance between the price and the moving averages is okay. If it goes sideways, it will do nothing until it’s either below or above the minimal range. And if the price goes up again, it will start to trade if the green moving average stays above the red moving average, and of course, if the minimal distance is reached. So these are very simple rules, easy to understand. And of course, in trading, you can make up your own rules. But now you know mine. If you are interested to hire such a system here, you can either contact me or go to my website. For now, that’s it for this video. I say thank you, and I will see you in the next one.