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Superalgos Discretionary Trading

Superalgos Discretionary Trading multiplies your chances of finding the best setups to trade by watching the market and signaling the situations you define as tradeable.

Superalgos Discretionary Trading can become your silicon eyes on the market. How many markets, exchanges, feeds, and data sources can you monitor? How much information can you analyze with a single pair of eyes and one brain? With Superalgos, you may multiply that capacity by any number you wish, as the platform does all the monitoring and basic analysis for you.

How much of your time is spent watching the market or waiting for the right opportunity to present itself? What do you do during low volume, sideways markets? How much time do you waste on the screen waiting for the market to move? Not only does Superalgos augment your capacity to stay on top of relevant information but it also saves you valuable time.

Superalgos Discretionary Trading allows defining market situations in which you would consider trading and get on-screen alerts, or even notifications via Telegram, when specific setups materialize. You may use Superalgos to set alerts for changes in trends, cross overs, divergences, candle patterns, breakouts, shifts in volumes, or any kind of signals you may wish to track.

Trade more efficiently while spending less time on the screen! Have Superalgos Discretionary Trading monitor and analyze the market while you focus solely on making trading decisions.

Monitoring the Market and Setting Signals

Tell Superalgos Discretionary Trading what to look for in the market, and forget about the endless cycle of browsing charts in search for trading opportunities.

Superalgos Discretionary Trading gives you access to a live-stream of information coming from exchanges or other sources. It also equips you with the tools to create customized analyses that may be applied to the incoming live data feed, in real-time.

The trading framework implemented by the Superalgos Suite goes as far as allowing for complete automation of trading strategies. But if automated trading is not right for you, you can still use such capacity to create signals.

The way you do that is by clearly stating—in mathematical terms—which market situations you wish to signal. Market situations are described by conditions that need to be true. That is, when certain conditions you define are true, the market situation gets signaled.

Let's draw up a quick example. Let's say you wish to create a signal for when a certain market turns bullish after a correction. You will probably want to check several indicators to confirm that the downtrend has reversed.

Each of these "checks" will become a condition that needs to be true for the trend to be confirmed. For example, you may want to see a crossover of the 7 and 14 days moving average. This would indicate recent prices are higher than past prices.

You may also want to check that the MACD histogram is increasing, that is, that buying momentum is growing. Maybe you wish to add a final breakout confirmation with a four-hour candle closing above the upper Bollinger Band?

Condition 1:
chart.at24hs.base7.sma7 > chart.at24hs.base7.sma14

The above shows a typical statement that makes up a condition. Let's dissect it to learn what it means. Do start by noticing the greater than sign > splitting the statement in two. This means that if the value resulting from the first half of the statement chart.at24hs.base7.sma7 is greater than the value resulting from the second half chart.at24hs.base7.sma14, then the condition evaluates true.

Now, let's look into the two halves and unpack each segment for clarity: chart.at24hs means we are checking the 24-hours chart; base7 is the reference to the Base 7 Simple Moving Average product featured by the SMA indicator, which offers SMAs in increments of 7 periods; sma7 means we are checking the 7-period simple moving average, which—on the 24 hours chart—is the 7-days moving average.

The second half of the statement looks similar to the first half. The only difference is that we are checking the 14-days moving average instead of the 7-days moving average. As you may now clearly see, condition one above becomes true every time there is a bullish crossover between the 7-days and the 14-days SMAs. This is a good example of how simple it is to describe a specific market situation in mathematical terms.

Condition 2:
chart.at24hs.macd122609.histogram > chart.at24hs.macd122609.previous.histogram

This is another mathematical comparison between two variables. We are checking the MACD 122609 product of the MACD indicator on the 24-hour chart. Indicators may offer different products. In this case, macd122609 corresponds to the popular (12, 26, 09) MACD setting.

The precise property of the product we are checking is the histogram, that is, the difference between the MACD line and the signal line. The second part of the statement introduces the previous property which means that the variable we are checking corresponds to the previous candle.

Therefore, the condition will be true when the histogram of the current candle is greater than the histogram of the previous candle. This is exactly what we proposed initially: the MACD histogram is increasing, signaling an increase in buying momentum.

Condition 3:
chart.04hs.candle.close > chart.at04hs.bollingerBand.movingAverage + chart.at04hs.bollingerBand.deviation

In the first half of the above statement, we introduce the variable candle and its property close, that is, the closing price of the current candle at the 4-hour chart.

We are checking that the closing price of the 4-hour candle is greater than the Bollinger Band moving average plus the Bollinger Band deviation, that is, the upper band.

In our example, when all of these conditions are true, then we assume the market situation we were trying to spot—a bullish reversal—has materialized.

Testing Trading Ideas

How many times have you run into traders proposing both seemingly dubious or brilliant trading ideas, but you can't tell whether they would work or not?

Most trading strategies are based on one or more trading ideas, and most traders have a bag full of tricks that they swear work like a charm. Be it patterns, events signaled by indicators or any other form of technical analysis, we all think we know what we are doing. However, most human traders don't, as we are constantly affected by confirmation bias.

The only way of knowing for a fact if a trading idea works in a certain market, or under certain market conditions, is by testing it. While the Superalgos Suite enables the automation of complete strategies, you don't need to go that far. What you may do is extend the exercise described on the previous section and simulate taking a position after a situation is validated.

Superalgos features extensive strategy testing capabilities that will discover the actual value of your signals. Simulations will tell you how many times the signal turned into a hit and how many it turned into a failed trade. You may test trading ideas in different historic datasets, setting specific time ranges, or constraining the tests to specific market conditions.

The discretionary trading features described in this page are built-in the Superalgos software. No matter what focus you start with, you will always be able to tap into all the features and functionality in the suite, including those associated with other fields.

Download and Set Up

Find installation instructions on the main repository

In homage to the open-source spirit, we have moved the Getting Started Guide to our GitHub repository, where the rest of the code is. The button below takes you there.

Getting Started Guide