Home Community Trade Signal Discussion Does Auto ML and Short signals cancel each other?

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    • #3711
      VideoPac
      Participant

      Hello,

      I am new to crypto and trading, and I want to confirm something I am unsure about.
      If I decide to trade the same BTC quantity for Auto ML and Short signals, then when one of them is on long and the other is short won’t they cancel themselves?
      For example, currently we have:

      – Auto-ML Status for BTC : OPEN LONG
      – Short Status for BTC : OPEN SHORT

      So basically, if I follow a basic strategy of trading 1 unit for Auto-ML and 1 unit for Short signals, then I shouldn’t have any opened position on BTC currently, am I right?

      Thanks for your help

    • #3713
      Justin
      Moderator

      Hello @VideoPac, great question and the confusion is understandable.

      We actually had an error in the reporting of the BTC Short call, which is explained here: https://crypto-ml.com/community/topic/btc-short-technical-issue/.

      Issue aside, the BTC Short and BTC Long signals are their own machine learning models and can indeed potentially conflict. Usually, they move in sync, but there have been times of minimal overlap.

      In general, it has been our recommendation to “swim with the current.” That means to trade with the market. If the market is bullish and moving up, it is advisable to lean toward long trades. If the market is bearish and generally moving down, it is advisable to lean toward short trades. This is a general trading principle that most traders will follow anyway–you’re just stacking the odds in your favor.

      I wouldn’t think about it as canceling each other out–I’d think about it as choosing one strategy that is best for the market and sticking with it from trade open to trade close. Our Market Index is designed to help choose which way you want to lean. Reading about our Market Index will explain this a bit more. You can also see how that pans out in the Combined Strategy portion of the Trade History.

      With that said, we are working on a unified short/long signal designed for higher trading frequency. This new model will be able to issue long and short positions and will be more focused on short-term reversals. This is nearly ready for general availability and hopefully will be out within 30 days.

      Does that help?

    • #3725
      VideoPac
      Participant

      Yes of course, thanks, that does help me to understand how each model deliver its own signal and how the different models work together here. I have to admit though that some parts of what you say are not really in accordance with my trading plan, like:

      In general, it has been our recommendation to “swim with the current.” That means to trade with the market. If the market is bullish and moving up, it is advisable to lean toward long trades. If the market is bearish and generally moving down, it is advisable to lean toward short trades. This is a general trading principle that most traders will follow anyway–you’re just stacking the odds in your favor.

      choosing one strategy that is best for the market and sticking with it from trade open to trade close

      Concretely, this would mean to use also discretionary trading and not following whatever models I chose to follow all the time, or at least dismissing some trades issued by the models… Well imho, If I start throwing my personal feelings in the mix then:

      1) Why did I choose to follow a model in the first place, I mean even if the model tell me to go short, in – what I judge to be – a Bull market, it must have some reason to do so, it’s part of the model.
      2) I won’t ever be able to evaluate how the model perform.

      In any event, I am looking forward,for the unified model, which apparently will resolve those issue 🙂

    • #4979
      cryptologic
      Participant

      Agreed – a unified model would be brilliant

      • #4982
        Justin
        Moderator

        @cryptologic–glad to hear you’re interested! It’s still being worked. No shortage of things to go after. 🙂

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