thetradingparrot
patreon
Market orchestrator and managing upcoming risks
🕑 Added 2021-08-09 11:02:17 +0000 UTCI've been testing the bot orchestrator with two bots: Venka and Bebek.
Whenever the QFL orchestrator triggers a SELL signal it switches them both off.
That's why when I woke up this morning they were off.
I noticed that yesterday when they were switched off when the first SELL signal triggered they only had one deal open.
I still decided to almost immediately switched them back on and see how it goes as an experiment.
A few hours after BTC started pulling back and both Venka and Bebek got most of their SOs filled.
If BTC would have taken then a decent pull back, let's say over 10% then we would have had to start adding funds manually or leave them be and assume they will take longer to close.
This is fantastic. It's already showing me great value.
True, in this particular occasion it was not necessary to stop the bots.
And it probably won't be for a few more weeks if we keep this bullish sentiment intact.
The bulls are just getting started and from now it's high likely to get even more pumpy.
Fear and greed index is now at 65. Who would have thought we would be here when we were in dumpy territory just a few weeks ago trying to scratch some profits from every single asset bleeding on a daily basis.
The orchestrator can easily make you miss some good deals but I think it can also save your neck when the bears come back to remind us that we are in crypto and things pump as strong as they dump.
You should decide how much risk you want to take.
You can always override what the orchestrator is doing, but eventually you will thank your bots going off right before a BIG dump.
Just be aware that each and every time you decide to rush to manually switch your bots back on you are effectively deciding to take a risk which can turn in some extra cash or it can also turn into something you'll regret.
You can also decide to respect the signal and leave them off and maybe wait for 8 to 12 hours to see if things are dumping before jumping back in.
Once the market is very overextended, like in May where we had both daily and weekly divergences on RSI, MACD and others, then I will definitely become more respectful of the orchestrator signals and maybe even leave the bots for 3 to 4 days off after a SELL signal to make sure I don't get caught.
An alternative very valid approach as well is to never switch off your bots but as we get into more danger territory giving them progressively less funds.
Like for example now that ALT coin season index is only 20, you could give alt bots more cash and take more risk but if we start getting close to 75 alt season index, and RSIs are getting to hot on the daily and weekly timeframes too then you can gradually reduce to end up only exposing up to 10% of your funds. The past season we didn't have the orchestrator. I had Petro trading with up to 15K at some point but when we entered over 80 I was only running it with 1K just to give an example.
In Jan, Feb and March 2021 any red bags were lasting for up to a month. But after May you will need to be very experienced in manual trading and technical analysis to be able to close them at profit after an 78% dump on alts and attempting to do so would be very high risk.
For now it's almost annoying to see the orchestrator turning bots off unnecessarily, and that's expected as people are jumping eyes-closed into the market. This sentiment could last for a while but if you look at the previous bull run you will notice that you should still be prepared for multiple 18% to 31% drops, maybe at least once a month.
When are we going to get our first over 20% correction?
In the chart above you can see all the "monthly dumps". You can also see the multi month RSI divergence together with the RSI breakout in July.
Comments
The Trading Parrot! Great bot singals for save your deposit! Parrot, you made it to sell all coins by the market price and then it will stop bots? or just switches it off?
I was waiting for the orchestrator's review. thanks
I've noticed the same once I found the bots were turned "off" automatically by the Sell signal which was really cool. Can we consider using the Buy signal to turn them "on" again instead of doing it manually?
David May
Great news, would have saved me a panic last night. Luna filled up completely and I had to take control. It was ok in the end, but BTC could have easily turned back down at the 200 day sma As it happened it dramatically reversed upwards
