On-balance volume (OBV) is a technical trading momentum indicator that uses volume flow to predict changes in an asset's price. This is used to show traders potential market manipulations.
More information on OBV trading can be found here.
The OBV bot will analyze the market based on trading volume relative to price movements:
- Initially, when you start the bot, the OBV indicator will be 0.
- The bot will compare the previous and current closing prices at the end of each candle interval.
- If the current price closes higher than the previous closing price, the OBV indicator will increase accordingly.
- If the current price closes lower than the previous closing price, the OBV indicator will decrease accordingly.
- If the current price close is equal to the previous closing price, the OBV indicator will stay the same.
The important thing to look at is the indicator's movement and line changes, not the OBV number itself.
Give your Bot a unique name.
Choose the exchange account where you want the bot to trade.
You will see only exchanges that you have linked with our system.
See instructions for connecting to external exchanges.
Determine the pair the bot will trade with; the first one is the asset to acquire, the second is the quote currency.
The maximum amount of quote currency to invest.
Select the chart time frame for the bot examine. Strategy calculations and buy/sell decisions are made at the closing price of each interval. Smaller time frames result in more trades, while larger time frames will produce fewer trades.
Moving Average Period
Enter the number of chart intervals to use for each calculation period.
Moving Average Type
There are three options here: Simple Moving Average (SMA), Exponential Moving Average (EMA), and Weighted Moving Average (WMA).
If you select SMA, all interval data points are equally weighted and averaged.
Selecting WMA will give linearly weighted increases from oldest to most recent. For example, the oldest interval will have a weight of 1/6, the next interval will be 2/6, and the most recent will be 3/6.
With EMA, the intervals' weights increase exponentially from oldest to most recent using a formula based on both the simple average and a multiplier against each day's trend.
The formulas for moving averages are more fully described here.
Profit & Loss Settings
Take Profit Signal
Enter the profit % you want to gain from your original holdings that tells the bot to sell the accumulated assets.
Stop Loss Signal
Enter the loss % of your original holdings that tells the bot to close (sell) the open position and avoid further losses.
Click the Optimize Parameters link to have the bot determine the best parameters based on the pair you want to trade. You can also set other parameters manually, and it will optimize only the locked fields.
Running Your Bot
Once you have configured the bot, click Save Bot. If there are any errors, correct them and save the bot again.
When your bot is ready, click Start Bot.
You can monitor your bot's status from the Dashboard. If at any time you want to adjust the bot's configuration, stop the bot first, then click the Edit button.