Swing Trader: Crypto Pattern Trading at Trend Reversal Points (TA)

This robot has been designed for active swing traders specializing in cryptocurrency trading, with a focus on identifying market reversal points. These traders prefer using traditional market analysis methods while also incorporating the latest advances in machine learning technologies.

The robot's algorithm is based on trading classic models of technical analysis, with a specific emphasis on pinpointing reversal points in the market trend, such as "Head and Shoulders" and "Cup with Handle," among others. While these patterns have been established for years, many traders lack the tools needed to effectively identify and, more crucially, integrate them into their trading strategies. Leveraging artificial intelligence, Tickeron's quantitative analytics team has successfully tackled this problem by developing the most precise algorithm for detecting patterns as they emerge and the optimal approach for combining various pattern types.

The typical trade duration is short, lasting only 2 days. The cryptocurrency market is known for its heightened volatility and strong reaction to news, leading to more frequent trend reversals compared to regular stock markets. As a result, the number of simultaneously open trades can exceed 100. However, thanks to a unique algorithm for assessing the quality of turning points, the vast majority of these trades—76%—are closed with a profit, making this robot an effective tool for crypto swing traders.

Once a trade is initiated, a "Take Profit" order is placed at the target price level determined by machine learning algorithms. Additionally, this algorithm determines when a pattern is considered expired, and the trade will be closed if the target price is not reached. Multi-level backtests demonstrate that this approach allows the robot to swiftly close profitable trades.

Additionally, we offer our users a manual way to determine the level of exit from a trade that is acceptable to them. On the "Open Trades" tab, for each trade the profit amount is highlighted in a certain color. If the “Profit” column is gray, this means that the loss on the position is moderate and does not exceed 5%. If the color is red, then the risk is already significant and exceeds 5%. This makes it easy to visually determine the overall value of a risk based on open trades.

The robot's trading results are shown without using a margin. For a full trading statistics and equity chart, click on the "show more" button on the robot page. In the tab "Open Trades", a user can see live how the AI Robot selects equities, enters, and exits in paper trades. In the tab "Closed trades", a user can review all previous trades made by the AI Robot.

Disclaimer. The presented paper traded results (annualized returns, % wins/loss, and other statistics) are achieved by the application of the backtested and forward tested models. The past backtested and forward tested performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, expressed or implied is made regarding future performance. Forward testing started on 07.04.2023.