You might never look at another price chart again...
ฝัง
- เผยแพร่เมื่อ 8 ก.พ. 2024
- Introducing Dollar Bars for DEX Tokens.
When looking at price charts for tokens, I really couldn’t tell why price moved the way it did, or truly anticipate from looking backwards where price might move next…
So I decided to change that and build a chart that would show me who made or lost money, by how much and how fast.
But why not just use what we already have? We have daily, hourly or even by the minute price, volume, moving averages, RSI, Fibonacci ratios, pink elephants and orange monkeys?
Right! But none of that really leads to predictability which we objectively covered with hardcore analysis in the Udemy course.
So what then?
After giving this some thought, I decided to try and do what investment banks do, but rather than applying it to stocks, bonds or forex and all that jazz, to rather apply the same techniques to degen crypto tokens listed on Ethereum and Binance chains.
For example, you are used to seeing price bars like this. Let’s take hourly for example. Time moves by one hour, so a bar is printed. Time moves by another hour, so another bar is printed and so on…
BUT time is NOT what moved price! VOLUME is.
There are 3 steps to to building a chart which gives me a true view of what price is actually doing and who is making or losing money to gain an edge over traders.
The 1st step was to replace time bars with dollar bars.
So instead of for every hour, or day being the marker for creating a new bar, every amount of volume (say 5.0 ETH or 10K BUSD) would be the deciding factor.
Now for every 5 ETH a bar is printed, then for the next 5 ETH another bar is printed. Don’t worry though, I made this threshold adjustable so we can get more granular or zoom out if we need to.
With that solved, I decided to also add a time element for each bar and give it a light color if it moved fast and a darker color if it took a while. The beauty of this, is we now have a true view of momentum too! Something we just could never see with regular time bars.
BTW I run into a problem though. Every single exchange and tool out there uses TradingView which works great for time bars, but wasn’t going to cut it for dollar bars…do I ended up having to code even the charting from scratch. But that’s ok, because you know I love coding.
I wasn’t even half-way though, we also want to see who are dumping tokens on the market.
So the 2nd step was to track every single blockchain account that traded our given token of which were sellers who had the token before it was listed - for example on presale. I decided to call these external traders.
By doing this, I could now see how much of the volume was dumped by people holding tokens before listing.
Also, for the time being am tracking from the last 10,000 trades. So if someone bought before that and sold, that will show as purple too, but I plan to improve on that and track complete history at some point.
Ok so this next part really excited me when I had seen it for the first time.
We can also track the position of each trader who bought and sold after the token listing (let’s call these internal traders). So the 3rd step was to aggregate how much profit or loss they were realizing when selling their tokens bought during and after listing.
There is one more thing though. See this on the left, we can see the win rate of traders and get a really good idea of why they are and what they do.
I mean We could even set up our own bots to notify us of their trades. The ultimate copy trading.
Even though this is just a prototype of something secret for now that am working on, I decided to make it available to anyone who wants to use it and chucked it over at dexbars.com.
To get a working proof of concept, I used Bitquery to get the on-chain data so when you hit the site, either connect through them given they have a free tier, or of course if you are a member of Crypto Wizards, you can just sign in and you’ll be covered for data until our credits run out.
Ok so I have a lot learned in building this which of course am going to share with you, but now have even more ideas and honestly can’t put the project down. I think you’ll have loads of ideas too so I left a feedback form here for you to brain dump on me.
Chart: dexbars.com
Website: cryptowizards.net
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Remember, to see traders profit and loss, we have to track the account P&L for each blockchain participant - not something we can do in stocks or Forex. In crypto, we can actually see when traders sold at a profit or a loss.
As a follow up. DexBars is really slow right now. Just remember this is only phase I. Am working on a solution to have machines doing the number crunching for us. Stay tuned. I hope it’s all feasible.
another fab informative video
Thanks for the encouragement mate
Excellent bit of analysis -Few traders understand how much volume plays in understanding trends. I uses a On-Balance Volume oscillator indicator on Trading View which I use to confirm market signals.
Thanks for sharing that info!
Amazing work bro
Thank you so much 🔥
dude, you are the goat. so much alpha in this video!
Thanks man, I’m biased but share your view completely 🍻
really excellent work!!
will you share how you implement the volume-weighted bar chart in subscription? (both BE + FE)
Definitely. I’m going to cover the technical stuff on the Code Raiders YT channel.
Good stuff, Ty
🚀
Thanks a lot for the grete product. However, I'm not able to connect to bigquery, where should I take the api credentials from?
You want to get an API key from Bitquery and also add an app within their Dashboard. Within this, you will get a client id and client secret too. I’ll probably cover this in more detail on the Code Raiders YT channel when going into tool specifics soon for you
Nice this is a advanced form of renko chart. Have you got this working on equities too in your wizards group. Good work.
Just focussed on crypto data as the volume of data is manageable.
So can we actually trade cryptos with these type of charts? So when volume is going up we enter a long to keep it simple?
What I’ve seen so far is that when lots of traders are selling at a loss, it’s a great indicator that there’s not much sell pressure left.
@@CryptoWizards I see thank you great advancement congrats 👏
great to see a valuable tool being shared .
whats upcoming course in udemy ?
Hoping to do a trading course without coding, just a walkthrough of daily trades for profit so that we can dispel a lot of myths and incorrect subjective info on trading using some objective approaches.
Can we get someone in the community to look at dex inflows / outflows and provide an SQL dashboard? With volume and dex flows , we can pre-empt buy / sell move?
Do you mean inflows and outflows in terms of minting and burning or exchange flows? Both sound like a good idea
Love it!
Awesome. Im hooked on it too. Can't wait to get through the hardware issues right now as version 2.0 is really going to be something.
Great thank you
Thanks for being a wizard
hello sir, I'm trying to trade Pairs Trading using zScore so I made a zScore charts using HTML, CSS and JS. I did it but I traded when zScore is at 1.5 and -1.5 but I lost when zScore goes up from 1.5 to 3 and I closed at 0.5 because goes down back. How can I manage risks. Please help me.
Congrats on all that effort! Here are some things that might help. However, remember I don’t trade for a living so have no right to tell you what to do. Here are some thoughts:
- trade position sizing based on Kelly Criterion
- trade as many uncorrelated pairs as possible (diversify risk by not having many trades trading the same asset)
- trade pairs with low bid-ask spread and avoid commissions wherever possible.
Hey man once you release the "secret" thing you' re working on, make sure you make a short beginner friendly course just so that beginners can understand what's going on and how the tool exactly works and what makes it different from others.
Am planning on doing an actual trading course with this in mind.
@@CryptoWizards That would be awesome, so that we can learn the fundamentals along with how to use your tool!
Ok great. Love the feedback thank you
which mev bot arbiratge is not a scam, so far a lof ot youtube come out, especially with three button to deploy at remix....which solidarity of mev bot arbirate is not scam or fake one ?
Could you add SOL chain?
You read my mind! Working on it
Yes please do
CryptoWizards is there a tool i could use to see the best pair to make an arb trade? I have a great doftware that finds the pairs on polygon but if i could have an added tool it also executes the trades. I would love a chat with you if poss. Or i will just join and find out by using your service. Loving the videos, keep up the great work
I’m so with you on this. I’ve been nervous to bring out an execution tool due to regulation, but think I see a transparent way of doing this. Thanks for the valuable feedback.
@@CryptoWizards so what regulation would you need? I have software that executes so does it need to be regulated even on the Dex exchanges?
All the trades are recorded on the poly chain. Everything is done in one block. AAve loan paid back and profit straight into my MM
only for crypto? how about for forex?
Not possible, way too much volume per second and cost of data through the roof
It doesn’t work for BTC, help
Good point, adding to upgraded version.
@@CryptoWizards Amazing, thank you. I tried BTC/USDT but it’s it still says no data available. Really looking forward to that one
Crypto guru
Lol, I need to wear my guru wizard hat for the next video
stream together?