A Different Kind of Arbitrage

Arbitrage as defined by Wikipedia is "[...] the practice of taking advantage of a Price-Difference between two or more markets". The common way of using Arbitrage to gain profits is e.g. to buy a financial instrument on one exchange, transfer the asset to another exchange and sell it there at a higher Price.
Looking at Cryptocurrencies, there are a lot of Opportunities to take advantage of Price-Differences between Crypto-Exchanges, because there is no central Instance that controls the Price.
My CryptoArbitrageBreakout Indicator (Part of my CryptoArbitrage Toolkit for TradingView) can detect sudden increased Arbitrage between to Exchanges.
Another Strategy for using Price-Differences between Exchanges would be to detect Divergences or Lag between Price Movements on two Exchanges.
For example: The price on Exchange A is moving up, while the Price on Exchange B is going down. With the help of my CryptoArbitrage Toolkit you can detect Patterns that make use of those diverging Movements. In some cases the Price on Exchange B could revert and follow the Direction of the Price-Movement on Exchange A.
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My new Indicator Package for TradingView is available

I recently released my new Indicator Package "Jeddingen Divergence" for TradingView.

The indicator (or "study" as it is called at TradingView) is based on momentum vs price divergences and works best on forex, stocks and cryptocurrencies.

There is also a Strategy included to backtest the indicator settings. Backtesting can be restricted to a certain timerange, so it is possible to do a walk-forward analysis.

Strategy/ Study do include an RSI filter to get more reliable results.

My UniDivergence strategy is available as an EA for MT4

I finally wrote my own Expert Advisor that is roughly based on my TradingView strategy/ study "UniDivergence".

It is not only a re-implementation, since there are lots of additional features.

Some of them are:

  • Choose to trade on specific sessions (Sydney, Tokio, London, New York)
  • Use it to implement different trading styles, e.g. trading short-term with no stops, daytrading by going flat at the end of a trading session or trading on higher time-frames with a catastrophic-loss-protection
  • Allow/ disallow hedging

For a full list of all customization parameters, have a look at the handbook.

You can buy the EA here for only $49.

Find more information on the UniDivergence package for TradingView here.

 

 

Short video introduction on UniDivergence

I recently made a short video (approx. 10 minutes) to show some of the features of my UniDivergence indicator package to give you an impression on strategy development with this toolkit.

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Create alerts with multiple conditions

TradingView has a nice feature to add alerts based on some conditions. You could setup an alert, whenever price reaches a certain level or when price crosses an indicator that is available on the current chart.
You get an email alert or a pop-up notification each time certain market conditions are met, so you can check the chart and decide to take a trader or not.
Maybe you want to get notified if price is above a moving average, so you can check the chart and see if there is potential that price will move back.
But usually buy and sell signals are more complex and combine multiple conditions. If your strategy looks like this: "create a buy signal if price is below the moving average and RSI is below 30", you could setup two alerts - one for the moving average and one for RSI. If both alerts are triggered at almost the same time, you could decide to take the trade. But you would always need to monitor your alert messages and check if there are related conditions that will make up your buy/ sell signal in combination. This can become very confusing, especially if you consider to add more conditions to your strategy. Sadly currently there is no out-of-the-box option to create one alert that combines multiple conditions. But luckily you can solve the problem with very few lines of PineScript code.

 

Just open the Pine editor with a blank indicator script and insert the following script:
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