The “twap_plus” strategy highly involves the Relative Strength Indicator (RSI) trend of a certain trading pair to execute trades. This way users can setup bots to match whenever the RSI levels are theoretically giving “Buy” signals or “Sell” signals and decide potential entry and exit points.
(RSI) is a momentum indicator that evaluates overbought or oversold conditions by measuring the magnitude of recent price changes for various assets. It is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100.
Traditional interpretation and usage of the RSI are:
For more info about RSI click the link below.
The RSI Graph is available as a custom view in most exchanges. A view on how it looks like is seen below.
The table below reflects the config settings that comes after strategy; connector and trading_pair setup.
|Key||Default Value||Other Values||On Select||Order||Prompt|
|price_source||current market||current_marke external_market or custom_api||N/A||1||Which price source to use?|
|custom_api_interval||URL||Enter external pricing API URL|
|price_indicators||RSI||Enter the indicator based on which order sizes are adjusted (RSI)|
|indicator_candle||1m||1s;1m;5m;10m;30m;1h;1d||3||Enter the size of candles used for indicator calculatio|
|rsi_length||14||4||What history length should be used in the RSI?|
|order_side||buy||buy/sell||5||What operation will be executed?|
|target_asset_amount||1||6||What is the total amount of "trading_pair" to be traded?|
|order_amount_min||1||7||What is the minimum amount of each individual order (denominated in the base as set)?|
|order_amount_max||1||8||What is the maximum amount of each individual order (denominated in the base as set)?|
|order_spreads||-||9||What is the size of the limit orders from the price_type (denominated as a% of the asset price)?|
|is_delayed_start_execution||No||Yes/No||10||Do you want to specify a start time for the execution?|
|is_time_span_execution||(MM:DD:YYY - HH:MM:SS)|
|end_time||No||Yes/No||11||Do you want to specify an end time for the execution?|
|order_delay_time||(MM:DD:YYY - HH:MM:SS)|
|cancel_order_wait_time||60||12||How long do you want to wait before cancelling your limit order (in seconds)?|
price_source - Gets where the price of the subject asset/token is from
price_indicator - RSI based trading
indicator_candle - Similar to the Timeframe of the desired trade view on an exchange trading block
rsi_length - RSI level of entry (14 as the default undervalued Buy signal)
order_side - Select which action to execute (buy/sell)
target_asset_amount - Amount of set asset/token to be traded.
order_amount_min - Set minimum base asset/token order.
order_amount_max - Set maximum base asset/token order.
is_delayed_start_execution - Activate the option of starting trade.
is_time_span_execution - Set time of start if is_delayed_start_execution = "yes"
end_time - Activate the option of ending trade.
order_delay_time - Set time of end if end_time = "yes”
cancel_order_wait_time - ****Activate the option of ending trade.
See details below:
With the configuration above:
The twap_plus strategy’s ultimate goal is to fill the asset value indicated in the target_asset_amount. In order to do this, once the bot has started, it will create either a bid or an ask order based on the value assigned on the order_side which will be buying or selling. If buying, make sure to have enough Quote currency. On the other hand, to sell, make sure Base currency is available. The asset order volume to be placed will use the values indicated on the order_amount_min and order_amount_max. Remember that the bot uses the Base currency as the indicator on all order fields. And the frequency of the order will be depending on the graph of the rsi_length and selected timeframe in the indicator_candle_size. The bot will stop making orders when the target_asset_amount has been reached or if: (x + y) > target_asset_amount. Where:
For more info about RFOX see link below: