Strategy Designer is one of the latest innovations developed by Paratica. With this tool, you can design your buying and selling strategies in a much more flexible way.
When you log in to the designer for the first time, a screen like the one above will meet you. The A field in the image contains all “Rule Groups” and “Rule” in them. The B field contains the most basic commands and help links for design. Part C is the area where you specify which parities you want the settings to be made as in the other settings of Paratica.
Click on the “Add Rule Group” button in field B and let’s start designing our strategy.
The designer uses 1 main connector in total. This is the method used to link groups of rules. You can add an unlimited number of rule groups to the designer and an unlimited number of rule lines to each set of rules. For each set of rule groups, there are 1 binding methods, and this link refers to how the rules within a group of rules are linked to each other. How will the “Linking Method” work? Now, what is the rule?
Rules are basically mathematical equations. As with any mathematical equation, there is an operator on the left side of the equation, on the right side, and on how to compare these sides to each other. You can think of this as A = B, A = B.
Let’s examine what values A and B can take. A so the left side of the equation must always be a multiple choice option. On the other hand, according to the operator you choose, the right side of the equation can be multiple-choice, as well as areas where you can write your own value.
A multiple-choice “A” consists of 4 selection boxes in total: Parity, Chart Time, Indicator, and Index.
Parity: This rule refers to which parity will be used when it is run. If you want to use the pair’s data (which should normally be the case), you should select the parity expression in the corresponding Parity group from the default selected. If you want to use another parity, for example BTCUSDT, instead of the parity itself to perform a parity, then you should select the parity you want to use in that case. Let’s explain with a small example to avoid the concept turmoil. Assume that you add the XRPBTC parity to your portfolio in portfolio settings and if you want the MA (20) moving average of XRPBTC to be below the price when checking the rules to receive the Paratica XRP, you should select “Parity itself” in the Parity box. If you want BTCUSDT to have the RSI (14) value of 70 and above when receiving XRP, that is, if you want to use the indicators of BTCUSDT when receiving XRP, you should select BTCUSDT from the Parity box.
Graph Time: Paratica specifies the time when you want to use the selected parity graph.
Indicator: Here you can select which indicator data you want to use for the selected pair at the selected graph time. In the first stage, we added frequently used indicators in the TradingView. Over time, the number of indicators will increase.
Index: A selected range of values occurs when the indicator you select for the graph time is run. You can think of it as the moving average that you add to the graph changes over time and creates a total curve. The index refers to which value in this curve is to be used.
The index should be “0” if we want to get the value of the indicator in the active (in) bar. The previous bar is “1”, the two previous bars are “2” and the three previous bars are “3”.
Indeks provides significant advantages and flexibility in strategy design. For the crossing of moving averages such as Golden Cross (MA (50) and MA (200)), MA (50) should be below the MA (200) in the previous (Index = 1) bar. (50) will have to be greater than MA (200).
As you can see, a total result is obtained according to the parameters in these 4 selection boxes. This result is usually a numeric value.
The left-hand side of this rule line gives the “Current Parity of the Relevant Parity, the 4-Hour Chart, the Current Value of the RSI (14) Indicator” and the right-hand side gives the “Current Value of the Relative Parity, 1-Hour Graph, Camarilla Resistance-1 pivot levels”.
Now that we have two values on the left and right, we need an operator to compare these values. This ensures that this rule line generates a result.
Operator: The parameter to compare left and right values. We can call it divergent. There are 16 operators under 3 headings.
While only the indicator (indicator) can be found on the left side of the equation, the expression on the right side of the equation can be changed according to the group of the operator. When an operator from the display group is selected, an operator is selected for the right side of the equation when an operator from the Value group is selected. When an operator is selected from the Value group, two boxes will appear where you can enter the Minimum and Maximum values for the right side of the equation when an operator is selected from the Range group.
When the = (Equals) operator is selected, it is expected that the data on the left and right sides of the equation must be equal, so that the rule can be verified. When the data on the left and right are equal, this line is considered “TRUE” and the next line is changed. If there is no equality, the “FALSE” result is generated. The concepts of TRUE and FALSE will examine in a moment.
! = (Not Equivalent) operator generates the TRUE result if the data on both sides is not equal.
> (greater) operator generates the “TRUE” result if the data on the left side is greater than the data on the right.
> = (Large or Equal) operator generates the taraf TRUE ĞR result if the data on the left side is greater than or equal to the data on the right.
<(Less than) operator produces the “TRUE” result if the data on the left side is smaller than the data on the right.
<= (Small or Equivalent) operator produces the taraf TRUE) result when the data on the left is equal to or smaller than the data on the right.
The operator generates the TRUE result when the value on the left is between the two values on the right.
The Not Between operator generates the TRUE result when the value on the left is not between the two values on the right.
Between or equal operator generates TRUE in cases where the value on the left is between two values on the right, or if it is equal to one of these two values.
The Between or Not operator generates the TRUE result when the value on the left is not between the two values on the right and is not equal to one of these values.
The operator generates a value. It produces the FALSE result whenever it fails to produce the TRUE result.
RIGHT and FALSE Concepts and Mathematical Logic
First of all, we mentioned that the whole of these rules and rules correspond to a mathematical expression.
In Math, the expressions True or False are called propositions. For example, in the graph above;
The current value of MA (9) is less than the price:
Existing Transaction Volume is greater than the trading volume of the previous bar: FALSE
Maths and software offer us many options to combine the TRUE and FALSE results from our rules. These are called equivalence expressions. We will use only 2 of them here. These are: AND, OR.
AND: Two or more propositions (Proposition in mathematics, Rule in Paratica) should be TRUE if all of the propositions that connect to it are linked to the AND statement so that the TRUE result may occur. Even if one of the propositions is FALSE, the result will be FALSE.
OR: A minimum of one of the propositions that are bound to ensure that the TRUE result may occur when two or more propositions are linked to each other by the OR statement is sufficient. The FALSE result is only generated if all values are FALSE.V
In the picture below you can see how a result can be obtained by linking one or more propositions (rules) with AND – OR.
Paratica first interprets rule lines and generates a TRUE or FALSE value for each row. Then, these values produced for each rule are linked together by the “Rules Linking Method” of the related rule group and result in a result of the group. This result is naturally one of TRUE or FALSE statements. Each set of rules, like linking rule lines, is linked by the “Linking Groups” method at the top of the page. In this way, a decision is made for the purchase of any coins from the entire structure consisting of rule groups and rules.
Now let’s consolidate all the details we explained above with 2 small samples. Our first example is Golden Cross. This strategy is based on the intersection of MA (50) and MA (200) on the 4 hour chart.
Our second example will be linked to the first one. Suppose you have 2 different strategies that you trust, and you want to take action when one of these strategies generates signals. One of the strategies is the Golden Cross and the other is the uptrend from the RSI’s oversold region. As a result of the following rules, when one of these two strategies meets the requirements, purchasing takes place.
The examples we gave were valid for the Buying section of a Strategy Designer. Buying process works according to these rules.
Selling of Strategy Designer works with the same logic. When the conditions are met according to the entered rules, sell order is given for the relevant parity.
May you have great earnings with Paratica!