Aurox A.I. Indicator
This guide will cover information about the A.I. BGMC indicator.
Let me start off by saying, although we recommend reading the other guides, it's not 100% necessary as this indicator works differently than the rest. Our goal with Aurox is to give you the tools necessary to make educated decisions, but the hardest thing to teach is proper risk management. Risk management is a learned skill, and it takes time to really hone it in. We could write an entire course on risk management alone, but why do that when we can create an indicator that can help with it.
Risk management is where the Aurox AI indicator really shines. It has a built in risk management system. However, always be very careful trading because nothing is fool-proof.
Now, just like with every other guide, this isn't a 100% guaranteed indicator. If anyone promises you 100% accuracy or gains, turn the other way and run.
Everything takes a bit of work and patience, we can only provide the tools that can HELP you, not do it for you.
That's why we always tell our users to practice trading instead of just jumping head first. Any new strategy you read about, whether it's through us or some random blog, always practice. The simplest way is just annotating on the graph itself when and where you enter/exit the trades. The next simplest way is to use testnets or paper trading
Anyways, enough with the boring stuff. Let's begin... and as always, this will be long.
Background
The algorithm for the AI indicator is based on our original algorithm. It's simply been optimized to be much more efficient with risk management, rather than accuracy. Keep this in mind when reading the rest of the article, it's important!
The original indicator was designed strictly to recognize entries and measuring the accuracy of that. If the indicator triggered long, and the price could trend up, that was counted as a +1. If it moved the opposite way, then that's a -1.
But the AI indicator doesn't care about about accuracy. It cares only about educated, smart and safe decisions. And yes, there is a difference between those.
The core rules are the same. Following these minimizes your risk:
No low volume tokens. Personally we just stick to ETH and BTC, but if you must, just stick to the top 100 by volume.
We take trades only when interval closes. This is what we call a confirmed trigger. If you're taking triggers on open intervals, that's your call but we don't recommend it.
It tries to maximize gains during volatility and minimize during sideways trading
Green is long. Red is short.
Remember, the original Aurox indicator was ONLY for entries. But this one can actually be used for both entries and exits in SOME scenarios. We'll discuss that soon.
If you've never shorted the market, do not take this as an opportunity to gamble. Shorting, and leverage trading is reserved for experienced traders.
But here is what has changed from the original Aurox indicator:
The indicator can be used for both entries AND exits BUT only in specific instances.
The accuracy of it does NOT matter. We're only concerned about success. That's it. But that also means that we might have a lot more losing trades than winning ones. That's completely okay, the winning ones have generated higher margins for us in the past. Having said that, the same rules apply as the original Aurox Indicator. Higher intervals will be much more accurate and safer. Lower intervals will be less accurate, and more risky.
The indicator has built in risk management. This is related to the above. It tries to force us to exit losing trades before we lose any significant amount.
The indicator works differently on every coin and every interval of a coin. Make sure you read this twice. The indicator is optimized individually on every interval. Meaning it's not a "static" algorithm. Each interval has different ways it triggers. We'll go over some intervals that we know work well, but if you deviate from the examples below, just simply look at old triggers, then practice new triggers. If you find that interval works well, then you'll be able to live trade it. Do not jump head first on a completely new coin and interval.
The Strategy & How To
We know the following strategy works fine on both BTC and ETH on the following intervals:
5 Minute [Experienced Traders]
15 Minute [Experienced Traders]
1 Hour
4 Hour
1 Day
2 Day
Again, these are just suggestions. Can it work on other intervals? Yes, according to our users. Can it work on other coins? Yes, according to our users.
But these are the intervals that our team has looked over and tested it on. The strategy will remain the same independent of which interval or coin you look at.
The lower the intervals you use, the more trades you will need to take in order to offset the inaccurate ones. Remember, our goal isn't to be accurate but safe and successful! Plus, unless you've got a bit of experience under your belt, tackling 5 minute interval isn't recommended. Not only do you usually have to have a large balance, or use leverage (which again, isn't recommended for new users) but you'll also be entering and exiting trades very very quickly.
Sticking to 4H and above is more than enough to make smart trades and have a peace of mind for most users.
This goes back to risk management. Risk is higher on lower intervals. The opposite is true for higher intervals. This is the part that you have to determine on your own, our indicator can't predict your experience level.
In order to avoid any new trader from following this guide and getting wiped out, we'll use 4H as the example. But again this strategy applies to EVERY interval and EVERY coin!
Let's take a look at an example chart:
The strategy step by step is this:
We enter a trade on the trigger
We slowly exit parts of the trade along the way
Either exit the rest of the open order fully at a certain point of your choosing OR exit fully at the next trigger. By selling along the way, we can slowly get back our original entry. The above example is just that, an example. Do not go to Aurox and start selling 25% every $100. Use your due diligence and slowly close out your position along the way.
That's it for successful triggers. Nothing more... and as you can see from the above chart, every trigger was great at helping us spot trends. But what happens when a trigger is incorrect?
Let's take another example that happened few weeks before the one above:
As we can see from the above example, there's 3 bad triggers. Technically there's 2 bad ones, and 1 okay one. During number 1, the price did go down after the trigger and then come back up. If we had been taking profit along the way, chances are we probably exited some of our entry. But for the sake of the argument, we'll be extremely strict and evaluate worst case scenario triggers/trades.
Wrong Trigger Number 1
We entered short on this trigger when the candle closed, which was $60,467. But then we didn't exit on the next interval and price went up.
After a few intervals we had our next trigger. This is where we EXIT the entire trade. Again, if a wrong trigger happens, we EXIT at the next trigger.
This isn't a set rule though. You don't HAVE to blindly follow this, and you can use your own due diligence. This is just one strategy we have used and created the indicator for.
Let's say you're a more experienced trader and noticed something that told you the market was going up... Let's say Elon Musk tweeted he was buying a bijilion Bitcoins to send it to Mars as the official currency for his Mars colony. Obviously, waiting for the next trigger would be dumb if you're shorting the market.
Anyways, let's break it down step by step:
We enter trade on trigger after candle closes.
We slowly exit parts of the trade along the way
If the next trigger happens, exit the entire position. Especially if the market is going against us. Do NOT keep the trade open if the next signal appears and we're in the negatives.
Move to the next trigger.
Let's move through the rest quickly.
Wrong Trigger Number 2
Enter long when interval closes at 62,176
Market starts going down
4 intervals later a short triggers
Exit the trade, and take a loss of 2.11%
Wrong Trigger Number 3
Enter short when interval closes at 60,911
Market starts going down
2 intervals later a long triggers
Exit the trade, and take a loss of 1.05%
As we can see from the examples, the losses were all under 3%. Did it suck? Yes, any loss sucks. But the point of this indicator is to be overall successful and safe, not accurate. The indicator was designed with risk management in mind.
Let's look at the whole picture.
The Whole Picture
Alright, so here's the fun part. Let's analyze the last 20 triggers, and see what happened
Now, when I do this, we're going to assume you exited at the PEAK profit. Meaning you entered when the candle closed with a trigger over it, and then exited at the very highest profit.
Obviously this is virtually impossible for most people, but if we know the peak PnL is, let's say, 500%, we can assume that you'd be able to make at least 150-200% by closing parts of our position along the way. Since we only exit remaining open trades via the next trigger, it's impossible to know when and where you'll start to take profit. Therefore, this is the only way we can really calculate it. Just bare with me and don't discount this strategy yet, it'll make sense when I explain it a bit more below.
Okay, that's 20 triggers on BTC on the 4H interval. As you can see, even though I said the indicator was optimized for success rather than accuracy, since we are on a higher interval, it was actually very accurate.
This is expected. Higher intervals will be MUCH more accurate than the lower ones.
In this case, it was 80% accurate.
16 Successful Triggers:
Total percent gain: 107.85%
Total dollar value gained: $58,581.88
Average percent gained per trigger: 6.74%
4 Losing Trades:
Total percent loss: 10.35%
Total dollar value loss: $5,443.51
Average percent loss per trigger: 2.5875%
Overall PnL:
Total percent gain: 97.5%
Total dollar value gained: $53,138.37
Now let's break it down.
First, let's go back to what I said before. It is impossible for you to replicate peak results following this. This is the MAXIMUM of what you'd reach, because I specifically drew out lines from the entry to the top of the exit. No one, not you, not me, no one would ever be able to exit at the top spots. I know that, and I'm not here to inflate the numbers by lying to you.
BUT since we know that the maximum possible is 97.5%, it's a very safe assumption that even a trader would be able to gain 5, 10, 20, 30%, if not more.
Wouldn't you agree? Considering just one of the correct triggers had a maximum of 32% gain.
And that's not all, the most important part to look at is the average percent gained and lost per trade. THIS is why I said the indicator has built in risk management. When the trade goes against you, your losses are minimized. But when a trade goes right, gains are much larger. At most 3x as much as losing trades.
Finally, let's take it a step further and compare it to the buy and hold strategy. Let's assume you bought 1 bitcoin at the start of the first trigger and held it. The price then was $44,074.58. The current price is approximately $59,857. That means the buy and hold strategy would have netted you 17%. Compared that to a maximum of 97.5% gain, it does leave a lot of room to make higher gains than the buy and hold strategy.
Just For Kicks
Let's just check 15 minute interval to see if our strategy holds up.
Okay, we have 20 triggers. Let's break it down:
16 Successful Triggers:
Total percent gain: 18.59%
Total dollar value gained: $11,021.34
Average percent gained per trigger: 1.161875%
4 Losing Trades:
Total percent loss: 2.46%
Total dollar value loss: $1,469.49
Average percent loss per trigger: 0.615%
Overall PnL:
Total precent gain: 16.13%
Total dollar value gained: $9,551.85
So did it work? Sure, but as you can see it's MUCH harder to make great trades on the lower intervals.
The movements are tighter, there are more sideways trading, and in most cases, it requires large funds, and higher risk.
Again, the percentage gain is based on peak exit points, but if we assumed you were able to do just 1/4th of the total percent gained, that would net 4% return.. compared to buy and hold, which would have broken even from the start to end.
Finally, this was all done with 1 single indicator.
Most traders that are already scalping on these intervals are somewhat experienced and can add other indicators or strategies to make even better decisions. But the ones that are just starting out, stick to the higher intervals.
Final Thoughts
That's it. It's that simple. This indicator was designed with new traders in mind. We specifically wanted to create an indicator with risk management built in. Even if you have an indicator that's 50% accurate, yes a coin flip, but have great risk management, you can be a successful.
Just think about it, if you make a wrong trade but only lose 1% but a correct trade and make 10% gains, it would take 10 bad trades to offset the one good trade.
Let's review it one more time:
Enter long on green, short on red. (Shorting reserved for experienced traders).
If your entry is profitable, take profits along the way.
If your entry is not profitable, and the next signal confirms, exit the entry instantly.
There's not much more I can say, other than, enjoy. It took a long time for us to get this product live. Now it's up to you. Digest the info, and practice on testnets/paper trade.
Nothing in these sections are financial advice. Trading is inherently risky, and even more so with speculative assets like cryptocurrency. These guides are for educational purposes only.
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