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Automate TV Strategies Signum

Signum: Automating Your Trading Strategies

In today’s lesson, we dive into the exciting world of trading automation using Signum, a tool that promises to make automating trading strategies easier than ever before. Trading automation is essential in traditional finance because it allows investors to execute trades quickly without the need for constant human oversight. In the context of cryptocurrencies, where price fluctuations can happen in a heartbeat, having an automated system can effectively increase the chances of capitalizing on profitable opportunities. This lesson not only provides an overview of Signum but also connects traditional trading concepts to the dynamic world of cryptocurrency trading.

Core Concepts

  1. Trading Automation:

    • Definition: Automating the process of executing trades using software to minimize human intervention.
    • In traditional finance: Often employed in stock trading to execute predetermined strategies.
    • In crypto: Vital due to high volatility; automated systems react instantly to market changes, preventing emotional decision-making.
  2. Strategy Testing:

    • Definition: The practice of evaluating the potential accuracy of a trading strategy based on historical data.
    • In traditional finance: Employed to verify the effectiveness of investment strategies.
    • In crypto: Essential for validating strategies before real investments are made, especially given the lack of regulatory oversight in some projects.
  3. Backtesting:

    • Definition: The process of testing a trading strategy on historical data to see how it would have performed.
    • In traditional finance: Used extensively to build confidence in a trading approach.
    • In crypto: Provides a critical perspective on how various strategies may perform under different market conditions, saving you from costly mistakes later.
  4. Alert Systems:

    • Definition: Notifications generated by trading platforms to indicate trade opportunities based on set conditions.
    • In traditional finance: Often integrated into trading software to notify users about entry and exit points.
    • In crypto: Alerts are necessary due to the frenetic pace of the market, ensuring no profitable opportunity is missed.
  5. Risk Management:

    • Definition: The identification, assessment, and prioritization of risks followed by coordinated strategies to minimize their impact.
    • In traditional finance: A core principle ensuring the sustainability of investments.
    • In crypto: Due to heightened volatility, robust risk management strategies are crucial to preserving capital.
  6. Isolation of Assets:

    • Definition: Separating assets into distinct accounts or wallets to manage risk.
    • In traditional finance: Common practice to safeguard different portfolio segments.
    • In crypto: Vital to maintain clarity in performance and risk, especially when utilizing multiple trading bots.
  7. API Integration:

    • Definition: The connection that allows different software applications to communicate and exchange data.
    • In traditional finance: Heavily utilized in online trading platforms.
    • In crypto: Essential for connecting trading bots to exchanges for executing trades efficiently.

Understanding these terms provides a solid foundation for navigating the world of crypto trading and reinforces how existing financial principles manifest in this new realm.

Key Steps in Automating Trading with Signum

1. Introduction to Signum

  • Automation Tool: Signum is an innovative tool designed for simplified trade automation.
  • Personal Development: Developed in response to issues with other platforms, reflecting the need for user-friendly solutions.

2. Choosing a Trading Strategy

  • Select Your Strategy: You can choose any trading strategy from TradingView that includes signals.
  • Importance of Backtesting: Explore the results to validate effectiveness—take your time to find strategies with proven track records.

3. Setting Up Your Bot on Signum

  • Create a Trading Bot: Initiate the setup by selecting your exchange and generating an API key.
  • Connection to TradingView: This enables the receipt of signals directly from TradingView, streamlining automated trading.

4. Creating Alerts

  • Using Alerts: Set alerts in TradingView for your chosen strategy to ensure that you receive notifications promptly.
  • Importance of Active Alerts: Make sure your alerts are active and well-configured to prevent unexpected lapses in trading signals.

5. Monitoring Trade Performance

  • Daily Checks: Regularly monitor the alerts and performance data from Signum for your trading bot.
  • Organize in Sub-Accounts: Keeping each bot in its own account allows for better asset management and performance tracking.

6. Updating and Maintenance

  • Regular Adjustments: Periodically revisit your alert settings and strategy parameters to adapt to changing market conditions.
  • Importance of Education: Continuous learning through additional resources can enhance your strategy effectiveness.

Crypto Automated Trading

For each of these steps, it’s essential to understand their crypto-specific implications. Using automated trading systems like Signum allows one to efficiently respond to the high volatility in crypto markets, whereas alerts minimize the risk of missed opportunities. Unique projects in the crypto space leverage API integrations to enhance automated trading. For example, performing trades on exchanges like Bybit or Binance can be directly automated using tools like Signum, allowing for swift reactions to price changes.

Real-World Applications

Historically, automation has transformed trading strategies in both traditional and crypto markets. A prime example is how hedge funds employ algorithmic trading to maximize profits while minimizing risks, which can be directly compared to trading bots in cryptocurrencies. As the crypto ecosystem matures, the adoption of automation continues to expand, offering investors more sophisticated tools that were once exclusive to institutional players.

Challenges and Solutions

While automation offers numerous advantages, it also comes with challenges like reliance on technology and potential bugs. In the crypto world, the challenge of market volatility is inherently larger. Signum addresses these concerns with its user-centric design, ensuring that alerts and strategies remain effective despite rapid market changes. Newcomers might worry about the complexities of automation; however, with tools like Signum, entering the automated trading space becomes significantly more approachable.

Key Takeaways

  1. Automation Tools are Essential: Understanding and using tools like Signum can significantly enhance your trading efficiency.
  2. Choose Strategies Wisely: Take the time to backtest strategies to avoid costly mistakes.
  3. Setting Up Alerts is Crucial: Effective alert systems prevent missed trading opportunities.
  4. Monitor Your Performance Regularly: Regular checks on your trading bots can reveal valuable insights and areas for adjustment.
  5. Continuous Education is Valuable: Stay updated on market trends and strategies to make informed decisions.
  6. Risk Management Cannot be Overlooked: Protecting your capital with sound strategies is vital in volatile markets.
  7. Adapt to Market Changes: Be willing to tweak your strategies and alerts as the market evolves.

By implementing these takeaways, you can level up your trading journey in both traditional and cryptocurrency markets.

Discussion Questions and Scenarios

  1. How would your approach to risk management change when transitioning from traditional finance to crypto trading?
  2. Imagine you automated your trading strategy with Signum but it stops sending alerts. What immediate actions would you take?
  3. Compare the benefits of backtesting a strategy in traditional finance vs. crypto. What unique challenges arise in each?
  4. What aspects of automated trading could lead to over-reliance on technology?
  5. In what ways can the isolation of assets in Sub-Accounts improve performance tracking?
  6. Discuss how emotional decision-making plays a role in trading, and how automation could mitigate these issues.
  7. If you could create your own automated trading bot, what features would you prioritize based on what you’ve learned?

Glossary

  • Trading Automation: The use of software to execute trades based on preset criteria.
  • Strategy Testing: Process of evaluating trading strategies using historical data.
  • Backtesting: Testing a trading strategy against historical data to estimate its potential success.
  • Alert Systems: Platforms that notify traders of market opportunities based on defined criteria.
  • Risk Management: Strategies to minimize potential losses in trading.
  • Isolation of Assets: Keeping different assets or accounts separate for better risk management.
  • API Integration: A method that allows applications to communicate and execute trades automatically.

Navigating the world of trading automation can be complex, but with tools like Signum, you have the potential to streamline and enhance your trading experience significantly. So let’s keep your engagement high, and ensure you’re ready to embrace the automation revolution.

Continue to Next Lesson

In the next lesson of the Crypto is FIRE (CFIRE) training program, we’ll delve deeper into advanced trading strategies that complement the foundation you’ve built here. Get ready to elevate your trading skills even further!

 

Read Video Transcript
Automate ALL TradingView Strategies. Introducing SIGNUM. The easiest method.
https://www.youtube.com/watch?v=jG1EDt4MqO4
Transcript:
 That’s right, guys. In this video, I’m going to launch a brand new trade automation tool.  It’s called Signum. You can already see it up there. And I have developed this myself.  The reason why I’ve developed this is because I got fed up with software like  WandaTrading and 3Commerce. They have a lot of bugs. They are complicated to use.
 And it is not easy to automate any trading view strategy without changing the code  and putting in their stupid messages that ends today  this all is history it now works with signum which is behind me and i will tell you all about it  in this video i’m going to show you why it’s better faster easier more secure to automate  with signum than any other trade automation software i’m gonna show you a great strategy  as well the trading strategy for bitcoin because we  need a strategy to automate with so why not share a great trading strategy with you as well in this
 video which made more than two thousand percent profit since 2018 we’re gonna use that to automate  with signum it’s gonna take only a couple of minutes let’s go of course this video is educational  only i’m not saying that you have to use this trading strategy please do your own research by watching all of my educational videos to reduce the  probability of messing this up okay watch all of my videos that’s why i make them and i’m not the  financial advisor crypto is risky you can lose all of your money let’s continue you can see how
 excited i am about this because this will change a lot of people’s lives forever in crypto and so  let’s get started by looking at this particular trading strategy let’s say that i found this trading strategy somewhere  on trading view okay so i can take any trading strategy i want from here from trading view i  can start to type in strategy and i can take any of these it doesn’t matter which one you take if  it’s a strategy and has trading signals then it can be automated with. How do you know if it’s a strategy or just an indicator?
 Well, when you add it to your chart by clicking on one of those,  then the strategy tester will open up and show you the backtesting results.  And then you know that it’s a strategy.  Now, you can scroll through.  You can try a lot of these strategies.  I’ve done that.  It takes a long time to find actually good strategies, which is why it’s so hard.
 But this one that is called Gaussian Channel strategy is one that I’ve developed myself and I offer it to people for  free. The only thing you have to do is to come to my telegram and say that you want access. The link  is down below. You can get access anytime. No questions asked.
 Now, let me show you how fast  and easy it is to automate this trading strategy. After we’re taking a look at the numbers that this  strategy has produced. As you can see down there, I’ve turned on deep backtesting. And the reason  for that is that you can see from when to when these numbers have been produced. And one more  thing you need to know the settings for this strategy that I have right now are these I think  you have to change the polls from four to five keep that in mind now 2018 was  the absolute beginning of the bear market and i like to start strategies there because it makes
 their life even harder so if they can create good results since that time then i think it’s an  interesting strategy to look at again not financial advice but this strategy made 2016 profit with a  max drawdown of 26.7, which is quite okay if you  think that Bitcoin actually had a drawdown of 76% or here even 80%.
 So 26 is quite okay with a profit  factor of 4.5. And unfortunately, not winning a lot of trades, only 34% profitable trades,  meaning that when it loses, it loses a little bit. And when it wins,  it wins a lot. But still, this might be emotionally a bit hard to sustain. But again,  this is a great strategy if you don’t want to pay any money for better strategies.
 That is the one  that we’re going to use today. Over in Signum, I have created a trading bot called Gautam Channel  BTC. It’s my demo bot that I have connected to my Bybit account. By the way to create such a bot it’s  quite simple click on create bot and then click on Bybit or whichever exchange that we support and  that you want to use and then put in the API key and API secret and everything is explained in this  video here or in the explainer images which are unique for each exchange of course so depending  on which exchange you’re using we are giving you
 exactly what you need to do within the signum software so i’m not going to go through how to  create a sub account because everything is already explained here in this video now once you do all  of that you can then basically see what i see right now you can give it a name and you can  choose your trading pair and i’ve chosen btc usdt and then basically i allowed here trading view to  send signals to this bot that’s a security measure and now let’s simply connect trading view with  signum okay now let’s connect trading view with signum and i’ve put them side by side so it’s
 ultra easy to see how that works now i have to turn off the deep back testing because otherwise  this icon will not appear and you need to create an alert so first of all make sure that you are on the right time frame  and that the numbers that you see here in the back test are the ones that you want to automate with  because if you go to four hours or something that it will have a different result okay so make sure  your settings are exactly as you want them to be at the moment and then you can create an alert for
 exactly the chart and the strategy that you have in front of you basically and so now click on create alert or  add alert and then you only have to copy three things right the name we give you the name even  to make it easy and then copy over the alert message which contains everything necessary for  buying and selling so there is no need to edit the trading strategy whatsoever i’m not touching the  code right of the strategy at all i’m just just adding an alert, okay? And then go to notifications and make sure
 to turn on the webhook URL. By the way, you might need to upgrade to the essential subscription  for TradingView in order to be allowed to use this feature, but do it because it makes sense.  And then copy over the URL from Signum here and click create. And that’s it.  Okay, that’s it.  This is how easy it is to automate every single trade from this strategy to go to Signum.
 And then Signum will send a signal to my exchange in this case.  In this case, it is Bybit because this is connected with one of my Bybit sub accounts.  And again, everything is explained when you create a bot in Signum.  And just in case you’re wondering, where is my alert that I have just created, well, click here on the alerts panel  and it will open up and show you your alert.
 We’re going to talk about this a bit later in this video  to explain exactly what you see here. Just to make sure you fully understand what is actually  happening when you’re using Signum in this case, is that on the left side you have your trading signals  signum takes them and then triggers the trade on your exchanges right and makes it very easy to do  so because the exchanges have complicated apis and you as a retail investor as a non-developer  would have a hard time otherwise to trigger these trades now signum does more than that of course  because signum also shows you exactly what happened. It has support for many exchanges. Well, three for now, but we’re going
 to add way more in the next couple of weeks. And also, it shows you important information about  your portfolio because it fetches all of your assets from all the connected exchanges and shows  you how much you’re allocated where.
 So it’s very nice to get an overview on top of that it shows you if you  have a trading bot that is actually not configured correctly and so maybe you have money there that  is basically lying there not doing anything so it helps you with a lot of things right so if you’re  a retail investor you never have automated before this is the tool for you this is why we have  created it okay now before i show you how to get access to signum let me show you one more thing that you need to know about trading view to be able to have a system  that works for a long time now click here on the alerts icon to find your alert that you have
 created before okay you will find it here and when you hover with the mouse and you leave the mouse  there then you can see a few things right you can see that the strategy that you have automated is  the gaussian channel strategy it’s running on the bitcoin usd one day chart also you can see a few things, right? You can see that the strategy that you have automated is the Gaussian channel strategy.
 It’s running on the Bitcoin USD one day chart.  Also, you can see the message that we copied over from Signum.  That’s all great.  But one thing you need to take care about is the active indicator, right?  It says active.  And this is only active because there is an expiration date  that is in the future.
 And if you don’t have open-ended alerts,  and you might not have because that’s a very expensive feature on trading view then what you need to do is you need to click on  the calendar you need to go as far into the future as trading view lets you and you need to click on  the last date set it save it right but that also means that your alert will expire in this case on  the 7th of september and in that case Signum will not get an alert from  TradingView anymore because that alert has expired right so what you need to do is to come to
 TradingView every month is better to do it every month even if your alert can run two months and  simply edit the alert and move it into the future as far as you can click set and then click save  one more thing you need to know when you’re automating trading view strategies, or any strategy for that matter, is  does it go long only, basically betting on the price going up, or does it also go short? Let me  show you what I mean. Let’s close the alert panel over here. And when I make the strategy tester
 bigger, and simply I go to performance summary, you can see that this strategy only went long,  because that’s the profit that it made here. it never went short it didn’t do anything shorting right and  that’s cool and this is what i also think is best for most people and now why i’m telling you is  because signum right now does not have support for shorting also i think that most people shouldn’t  do that anyway so if you’re automating withum, then what you do is you convert one asset  into the other asset and vice versa.
 And that’s also indicated on Signum itself.  If I zoom in here, you can see this bot  will convert 100% of one asset into the other asset.  And that is basically saying that it’s long only.  Also, by the way, when you create your bot,  it also tells you here that we  only support long at the moment. And I think, again, for most people, that is the right move.
 I think shorting automatically is quite risky. But again, no financial advice. You can do whatever  you want. Just that Signum does not have support for that because Signum targets retail investors  who want to automate. And those people most likely should not short anyway automatically  because it’s risky as hell.
 So what happens here is that it would take the USDT that is on the  account and then it will convert it to Bitcoin when the next buy signal comes. Now if you look  here the last signal was a sell signal right these pinkish arrows are sell signals and the blue ones  are buy signals. There is no buy signal inside, but whenever it will  cross this line here, whenever that will happen, it will then get a buy signal. Okay.
 And that  means that Signum will get a signal from TradingView for buying. Okay. And then what happens  is that Signum says, okay, cool. You have this trading pair for this bot. So you want USDT,  Bitcoin. Cool. So there is a buy signal. I will take your usdt that is on the account and i will  convert 100 of the usdt into bitcoin nice right and then when the sell signal comes to get out  let’s say before the bear market right then it will take 100 of that bitcoin that is on the  account and convert it back to usdt it’s quite simple now this has a massive benefit to do it
 like this which is also why Signum requires to  have each trading bot on its own sub account so it can do the 100% back and forth. And the benefit  is this, right? So if you have some Bitcoin lying around somewhere and you say, wait a minute, I want  to add more to this trading bot, I want to give him more Bitcoin, then the only thing you need to do  is you need to transfer that Bitcoin onto that sub accounts account and that’s it because  100 right so signal will just take 100 of whatever is there bitcoin and sell it right so let’s say
 you have bitcoin on some other exchange on a wallet or whatever and you want to have it protected by  the strategy you’re using to not lose when the bear market comes to simply sell it and be out  of the market using a strategy like this, for example. So then you simply transfer the Bitcoin onto that sub-account.
 And because of the 100% logic that is used here,  it will simply sell all of that Bitcoin,  no matter if Signum has bought it before or whatever.  So you do not need to mess around with any of these settings here,  with initial capital or any of that.  And that is also where people often make a lot of mistakes.
 So that’s  why we created Signum in this way, that it uses 100% conversion between the assets. And there is  another massive benefit, of course, that if you have multiple trading bots, which you might have  because you have one for Bitcoin, one for Ethereum, one for Solana, for example, you might even have  multiple for Bitcoin, right? And then these funds are fully separated.
 Each bot has only  exactly those funds that it should have, right? So if one of them makes money, then it can use that,  reuse all of that money to reinvest. And if another bot loses money, then well, it will have less  money next time, right? So then you can actually perfectly compare also the performance, the real  performance of these bots by having the separation so this is absolute best practice and  this is why you’re watching this channel because i’m telling you also not only which software to  use but also how to not mess up your setup all right now how can you get access to this amazing
 software well it’s quite easy go to signum.money and over there you’ll find this very simple form  where you can get early access by putting your first name and email address.  And then you will get an email.  Everything will be explained to you there.  You can get your account today,  but you’re lucky if you’re early  because it doesn’t cost you anything  because we didn’t yet built in the subscriptions, okay?  We have the full functionality for trading,  but no subscriptions.
 It will cost $ 25 a month for 25  trading bots okay but if you’re early right then you don’t pay anything and it might take a couple  of months actually for us to still build in the subscription so if you’re early as always you’re  in a good spot this is an awesome day we are launching signum and we love to get your feedback  so make sure to comment  down below how you like the software okay how you like this video as well get your early access get  into telegram give us your feedback there as well if you like that better and i see you very soon on
 this channel make sure to subscribe like this is just the beginning of the automation revolution  that we are sharing with everyone opening their eyes to trend following strategies  and automation. Let’s go. I’m hyped up. Cheers. Man, this other Michael was so hyped up and forgot  to tell you that there is a masterclass to make you a master of automation.
 Of course,  Signum is part of that. It will teach you everything you need to know about how to set  up automation properly. There is a lot to learn about risk management. Sharing with you my own personal strategies, which are better than the ones that you actually saw in the video,  of course, because those are my own strategies. There is a lot of education.
 If you want to get  access, click on apply for access and mention the word Schnitzel. Okay, Schnitzel gives you 20%  off after you get accepted because this is not for everyone. There is an acceptance process.  Long story. Check it out if you like it. I think this is a perfect combination to Signum because  it gives you the best education with the best strategies.
 And now you also have Signum with  the best trade automation software.