confirming indicators

To enhance the precision of your trading strategy, you can utilize several confirmation indicators to validate buying and selling criteria. This article outlines all available settings for confirmation indicators.

Orders will only be executed if both the main strategy settings and confirmation indicators align. If TrailMe is incorporated, it must complete trailing while satisfying other conditions as well. All these conditions must coincide within the same cycle.

When using TrailMe in conjunction with confirming indicators, it is advisable to avoid setting the indicators too strictly. This is because all order criteria must occur simultaneously for an order to be placed.

INDICATORS ARE CALCULATED WITH LIVE DATA
AILidex calculates indicators using real-time data. To illustrate, let’s take the example of a 14-period RSI calculation. This means that AILidex uses the closing values of the past 13 completed candles in addition to the live data of the current open candle to calculate the indicator value.

Exchanges do not provide indicator data, so AILidex has to calculate its own. Exchanges only provide raw data for calculating indicators. While AILidex uses what we consider the best library for indicators, it’s important to note that exchanges or TradingView may display slightly different indicator values due to differences in their calculation methods.

ADX
ADX Enabled
Description
Values
Order types
Name
Setting this to true will enable ADX as a confirming indicator, only allowing trades when the trend is strong enough to meet or exceeds the set ADX_LEVEL.

ADX measures both up- and downtrends, when DI+ is lower than DI- prices are moving up (these values are visible in the logs). When DI- is lower than DI+, prices are moving down. The ADX value indicates the strength of the current up- or downtrend.

A buy order is confirmed when ADX is above ADX_LEVEL and DI- is lower than DI+.

A sell order is confirmed when ADX is above ADX_LEVEL and DI- is higher than DI+.

ADX Level
Description
Values
Order types
Name
Sets the minimum trend level that needs to be reached for orders to be allowed.

When set to 25, trades will be placed as soon as ADX is 25 or higher.

DI Period
Description
Values
Order types
Name
Sets the number of candles used to calculate ADX.

BTC PND protection
BTC PND Protection
Description
Values
Order types
Name
Setting this to true disables buy orders when there is too much price and volume pressure on BTC.

This setting is dependent on BTC_MONEY_FLOW. Only use this if BTC price changes have a significant effect on your trading pair.

BTC Money Flow
Description
Values
Order types
Name
Sets the value on the Money Flow Index (MFI) for BTC-USD that BTC_PND_PROTECTION disables orders for. As soon as MFI hits the set value or drops below it, BTC_PND_PROTECTION will be active.

The default value of 35 indicates that the BTC-USD market is moving into oversold territory and might start moving soon, no buy orders would be placed while BTC-USD MFI is between 35 and 0.

As long as BTC-USD is the defined oversold territory, no orders will be placed.

BTC PND Period
Description
Values
Order types
Name
Set this to the number of candlestick periods you want to use for calculating MFI for BTC_PND_PROTECTION.

EMA Spread
EMA Spread
Description
Values
Order types
Name
Setting this to true will enable EMA spread as a confirming indicator for both buy and sell orders. The spread is calculated each cycle by subtracting the lowest EMA value from the highest EMA.

A buy signal occurs when EMA1 (slow EMA) is at least EMAx higher than EMA2 (fast EMA) and the EMA spread value starts to decrease (after having increased first).

A sell signal occurs when EMA1 (slow EMA) is at least EMAx lower than EMA2 (fast EMA) and the EMA spread value starts to increase (after having decreased first).

EMAx
Description
Values
Order types
Name
Sets the minimum percentage difference between slow and medium EMA for emaspread.

When set to 1, the spread must reach at least 1% before emaspread can trigger a buy or sell.

MFI
MFI Enabled
Description
Values
Order types
Name
Setting this to true will make sure AILidex only trades when both strategy conditions and MFI_BUY_LEVEL / MFI_SELL_LEVEL are met.

If you only want to use this indicator for buying or selling, but not both, then set the side you don’t want to use to -1001

MFI Buy Level
Description
Values
Order types
Name
Defines the maximum MFI level you want to allow buy orders at.

When set to 30, buy orders will only be placed when MFI is between 0 and 30.

MFI Sell Level
Description
Values
Order types
Name
Set this to the minimum MFI level you want to allow sell orders at.

For example: when set to 70, sell orders will only be placed when MFI is between 70 and 100.

MFI Length
Description
Values
Order types
Name
Set this to the number of candlestick periods you want to use for calculating MFI.

MFI is calculated using an array of the period close prices of MFI_LENGTH-1 candles and the last price.

RSI
RSI Buy Enabled
Description
Values
Order types
Name
Setting this to true will make sure AILidex only buys when both strategy buying conditions and RSI_BUY_LEVEL are met.

RSI Sell Enabled
Description
Values
Order types
Name
Setting this to true will make sure AILidex only sells when both strategy selling conditions and RSI_SELL_LEVEL are met.

RSI Method
Description
Values
Order types
Name
Sets the method for using RSI. See RSI_BUY_LEVEL and RSI_SELL_LEVEL for detailed descriptions of both methods.

RSI Buy Level
Description
Values
Order types
Name
Set this to the RSI level you want to allow buy orders at.

RSI_METHOD = oscillator: when set to 40, buy orders will only be placed when RSI is 40 or lower.

RSI_METHOD = cross: when set to 40, buy orders will only be placed when RSI crosses over 40.

RSI Sell Level
Description
Values
Order types
Name
Set this to the RSI level you want to allow sell orders at.

RSI_METHOD = oscillator: when set to 60, sell orders will only be placed when RSI is 60 or higher.

RSI_METHOD = cross: when set to 60, sell orders will only be placed when RSI crosses under 60.

RSI Length
Description
Values
Order types
Name
Set this to the number of candlestick periods you want to use for calculating RSI.

RSI is calculated using an array of the period close prices of RSI_LENGTH-1 candles and the last price.

Stochastic
Stoch Enabled
Description
Values
Order types
Name
Setting this to true will make sure AILidex only trades when both strategy trade conditions and STOCH_BUY_LEVEL / STOCH_SELL_LEVEL are met.

If you only want to use this indicator for buying or selling, but not both, then set the side you don’t want to use to -1001.

Stoch Method
Description
Values
Order types
Name
Sets the method for using Stochastic. See STOCH_BUY_LEVEL and STOCH_SELL_LEVEL for detailed describtions of both methods.

Stoch Buy Level
Description
Values
Order types
Name
Set this to the maximum Stochastic level you want to allow buy orders at.

When set to 30, buy orders will only be placed when Stochastic is between 0 and 30.

STOCH_METHOD = oscillator: a buy signal occurs when both Stoch %K and %D are below the set buy level.

STOCH_METHOD = cross: a buy signal occurs when both Stoch %K and %D are below the set buy level, additionally %K must cross over %D.

Stoch Sell Level
Description
Values
Order types
Name
Set this to the minimum Stochastic level you want to allow sell orders at.

When set to 70, sell orders will only be placed when Stochastic is between 70 and 100.

STOCH_METHOD = oscillator: a sell signal occurs when both Stoch %K and %D are above the set sell level.

STOCH_METHOD = cross: a sell signal occurs when both Stoch %K and %D are above the set sell level, additionally %K must cross down %D.

Stoch K
Description
Values
Order types
Name
The number of periods used for calculating Stochastic %K.

Slow Stoch K
Description
Values
Order types
Name
The number of periods used for calculating Slow Stochastic %K.

Stoch D
Description
Values
Order types
Name
The number of periods used for calculating Stochastic %D.

StochRSI
Stoch RSI Enabled
Description
Values
Order types
Name
Setting this to true will make sure AILidex only trades when both strategy trade conditions and STOCHRSI_BUY_LEVEL / STOCHRSI_SELL_LEVEL are met.

If you only want to use this indicator for buying or selling, but not both, then set the side you don’t want to use to -1001.

Stoch RSI Method
Description
Values
Order types
Name
Sets the method for using StochRSI. See STOCHRSI_BUY_LEVEL and STOCHRSI_SELL_LEVEL for detailed describtions of both methods.

Stoch RSI Buy Level
Description
Values
Order types
Name
Set this to the StochRSI level you want to allow buy orders at.

STOCHRSI_METHOD = oscillator: when set to 0.2, buy orders will only be placed when StochRSI is 0.2 or lower.

STOCHRSI_METHOD = cross: when set to 0.2, buy orders will only be placed when StochRSI crosses over 0.2.

Stoch RSI Sell Level
Description
Values
Order types
Name
Set this to the StochRSI level you want to allow sell orders at.

STOCHRSI_METHOD = oscillator: when set to 0.8, sell orders will only be placed when StochRSI is 0.8 or higher.

STOCHRSI_METHOD = cross: when set to 0.8, sell orders will only be placed when StochRSI crosses under 0.8.

Stoch RSI Length
Description
Values
Order types
Name
Set this to the number of candlestick periods you want to use for calculating StochRSI.

Advanced settings
EMA Length
Description
Values
Order types
Name
Set this to the number of candlestick periods you want be available for calculating EMA1 and EMA2. Unless you use very high EMA values, you usually do not need to change this.

Candles Length
Description
Values
Order types
Name
Set this to the number of candlestick periods you want AILidex to pull from the exchange, which are available for calculating other indicators.

Always make sure that this setting is high enough for other indicators to be properly calculated.

Please be aware that exchanges won’t always provide the number of specified candles, often it is less.

Bollinger Bands for DCA
SMA Period
Description
Values
Order types
Name
This defines the number of periods used for calculating Bollinger Bands. Only used when DU_METHOD is set to HIGHBB.

Standard Deviation
Description
Values
Order types
Name
This value defines the multiplier used for calculating Bollinger Bands. Only used when DU_METHOD is set to HIGHBB.

Renko candles

TIP
Renko charts are supported in v18, not in later versions.

Use Renko
Description
Values
Order types
Name
Setting this to true will enable the use of renko candles, instead of regular candles.

Renko Period
Description
Values
Order types
Name
Sets which regular candle size is used as input for renko candles. Make sure to set PERIOD to the same value as RENKO_PERIOD.

Renko Brick Size
Description
Values
Order types
Name
Defines the brick size for each candle.

For example, when set to 1 on a pair with USD as base currency, each renko candle will represent a price change of at least 1 USD.

If you are unfamiliar with renko charts, it’s recommended to first set the brick size to the smallest possible step, for example 1 USD or 0.00000001 BTC, and see what effect it has on the chart (do keep the chart open a while to check how new price movements get visualized). Then keep increasing the brick size until you get a good feeling of how the chart behaves.

Renko ATR
Description
Values
Order types
Name
Enable this to dynamically adjust brick size based on the average true range (ATR).

For fiat pairs, 1 pip equals 1 cent. For crypto, 1 pip equals 1 satoshi.