May 29, 2020
Trading Signals Are The Best Approach
Many wonder what trading signals are and their usage. Below is why some prefer trading signals and their functionalities!
What is Trading Signals?
Trading signals are an excellent approach for smarter and faster trades. Signals are a trigger for action for selling and buying points that programming professionals share their data and strategies for users to trade. Algorithmic trading is developed strategies and trading signals. Data, Indicators, and Strategies define algorithmic trading.
- Data – to use past data to serve as a foundation for the analysis.
- Indicators – to choose the different types of indicators, such as moving average for analyzing the data
- Strategy – to define the way to use indicators to trade
How Trading Signals Works?
Signals platform involves data, indicators, and strategies with great visual design. TradingView is an example platform to use to obtain signals. If you want to learn how to set an account and set alerts for trading signals, here’s a great article to read! The picture below is the S&P500 trading signals example from Yaonology. The purple signals indicate the selling points and the blue signals indicate the buying points.
Benefits of Using Trading Signals
Trading signals are more accurate and effective to discover buying and selling points. It is stress-free – eliminates human emotions. On the contrary, the signals are from real data analysis to develop strategies and offer signals. Moreover, the trading platform ensures strategies match the actual market through backtesting. The trading signals also reduce the research time for beginners. Everyone can start without any professional knowledge.
Moreover, algorithmic trading has low risks due to the maximum drawdown and stop-loss point. The maximum drawdown measures the drawdown from the high point to the low point before the new peak. It is a total loss by applying the strategy to the historical market. The stop loss point is a limit an investor’s loss in the security point. Therefore, the trading signals from the algorithmic trading strategy is safer and earlier for people to start to invest. This is the reason why more people chose algorithmic trading over manual trading.
Yaonology uses the 25 years of historical data to create the S&P500 strategy and 5 years of historical data for the bitcoin strategy. We deliver signals at 4 pm after the stock market closes, indicating the appropriate selling or buying point. Our clients trade by following our trading signals. Our signals are valid for 24 hours. However, stock prices may vary if you trade the next day when the stock market opens.
Yaonology provides different algorithmic trading strategies and signals for S&P500 and Bitcoin. Our trading strategies are established in TradingView, a great platform for those who are interested in building your own strategies. If you’re curious how to code in Pine Script, follow the link here to find more tutorials!