How The Aurox Indicator Functions - Part 1
This article is going to be boring. You're going to get bored halfway through, and that's expected. Nothing good in life is easy or exciting. We didn't spend 100s of hours developing a trading algorithm because it was exciting. We did it because it helped us make educated and smart trades! That's all that matters; how to make smart trades with minimal effort, and that's exactly why we created Aurox.
Aurox provides every tool possible to help traders go from making bad trades to more educated trades. Now it's your turn to capitalize on our knowledge and experience to further your trading. This article is the first step on how we leveraged our algorithm to make smart trading decisions for the past several years using the same exact tools available in Aurox. Plus it's free for everyone.
Everything we have shared is completely free, and you can even try this on testnets supported by Aurox.
Before you even read this article, familiarize yourself with the terminal! We're not going to hold your hand throughout this article, because not only do we have video tutorials about the terminal but we even have interactive tutorials. Both of these can be found on the right-hand bar of the terminal (https://web.getaurox.com). Use them, learn them, and then let's begin.
The Rules
First, we're going to go over what Aurox indicator is not.
It is not a 100% guaranteed system
It is not accurate on lower intervals (As of 10/2020. We're working on making it more accurate on lower intervals.. But we have other indicators for this. We'll discuss them in later lessons)
It is not an indicator you follow blindly. This goes back to the first point.
It does not work perfectly on sideways movement
This is an area we're working on improving... But it doesn't even have to work at all on sideways movement if we know how to use it
Inaccurate with low volume tokens, but we're not even going to be trading these in the first place.
This is not financial advice. You should understand that trading speculative assets is dangerous and every trade made by you is yours only. Aurox only provides tools that can assist you when trading.
Now, what is the Aurox indicator?
Helps you spot market trends.
The indicator has been backtested to be useful on BTC/USDT at predicting trending movements.
Should be used for entry points only. Not exits.
An indicator that has helped thousands make educated trading decisions when used properly
The Aurox indicator triggers in realtime. Therefore, you might see the indicator appear and disappear as the price moves. We'll explain this more in detail below
Let's start with the basics
The main intervals we will be paying attention to are 1 day and 1 week. These are the intervals we use ourselves. That is not to say the indicator can't work on the lower intervals, but we can't recommend lower intervals for new and intermediary users. We highly suggest sticking to these intervals until you get the hang of it... And honestly, there is no need to use it on lower intervals anyway.
We're going to use 1-week interval to help guide us while trading on the 1-day interval. In addition, we will focus specifically on high volume pairs like BTC and ETH. Aurox indicator is NOT accurate with low volume pairs and we do not recommend using it on low volume pairs.
Anyways, let's take a look at the current weekly BTC chart with the indicator enabled.
The Aurox indicator is fairly good at this interval. When a trigger happens on the weekly interval, it tells us that the pair is going to trend either up or down. As we can see from the example above, the price of BTC went up $3000 since the last green arrow happened.
We can use the weekly chart in one of two ways:
We can be a long term yet safe trader by executing our trades only on weekly intervals. This not only increases our chances of being accurate but we also don't have to worry about the market day to day. As we can see from the above picture, it only triggered 12 times in over a year, but the majority of them were successful at predicting large trends.
We can use the weekly interval as a guide on how to execute trades on the lower intervals. For example, if the weekly trigger is showing a green arrow, we know the price will be trending up on the long term. Therefore, it makes no sense for us to start shorting the market even if we see red arrows on the daily interval. When a red arrow triggers on a daily, it might drop by a few hundred dollars but then it might recover and go up higher as our weekly trigger showed.
When an arrow appears, it notifies us when to take action. This action can persist for several intervals AFTER the trigger. What I mean by this is, let's say the weekly indicator triggered today, but we didn't see it till the next week. We can still take action now, but we just have to be more careful. The further intervals we get from the trigger, the less accurate it becomes. But again, it does not mean we can't enter the market 2, 3, 4, or even 5 intervals after the trigger.
The most accurate trends are when the interval after the signal first triggered . But we'll learn soon how to enter the market even when the trigger happened several intervals before.
Disappearing Triggers
The indicator is triggered in realtime and uses multiple different data sources to show the signals. Meaning the signals can appear and disappear on open candles. This is normal. You just have to know how to read it.
If for example the green arrow triggers but some extremely bad news causes a major dump, it is possible for the indicator to revert or disappear. This does not mean to ignore open candles with signals on them. Even if the signal were to revert, almost 9 out of 10 times, the signal will trigger again on the next candle. Meaning the same signal will come back but one candle later. This is simply because there is market pressure in a specific direction and a slight opposite directional movement caused it to disappear.
When taking actions on open candle triggers, you need to be somewhat more cautious and utilize other techniques we'll discuss in the next few articles to help guide us.
For beginners, our suggestion is looking for a trigger, waiting until the candle closes, and taking action. In the next email/article, we'll go over the how-to safely enter the market in every scenario. Stay tuned.
Final Thoughts
The basics of the indicator are easy, however, always use your common sense. Do not blindly follow indicators. There's always macro and micro economics in play when trading speculative assets.
In this article, we went over how we can utilize the weekly triggers to make more educated daily trades. In the next few articles, we will discuss when to take action, as well as, other indicators that can help us increase the accuracy.
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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