Indicator Signals Ground Rules
- Only 2 signals can be created by the indicator. Buy and sell.
- When an indicator has a threshold like the RSI, the indicator can produce no signal at all.
- Indicators can be processed on 3 different ways. Default (unanimous), Consensus & Weighted consensus
By default, all the indicators need to agree on a signal. That includes indicators like the RSI if they don't have a signal. If any of the indicators disagrees or is neutral, the signal isn't valid.
Consensus mode enabled.
If the consensus mode is enabled, the signal of the majority is valid. In this mode, neutral indicators are excluded. When a bot has 2 buy signals, 1 sell signal and 1 neutral, the indicator signal will be buy.
Weighted consensus mode.
When consensus mode is enabled with weight threshold above 0, the total weight of the indicators needs to be above the defined threshold before the signal is considered valid. When more then 1 threshold is reached, the signal with the most weight is chosen. In case of a draw, no signal will be valid at all.
Signal mapping on margin/leverage.
By default the indicator buy and sell signals are mapped to long and short signals. Indicators due allow for custom mapping of the signals. The options are long, short or no position. Keep in mind that when disabling buy or sell signals from the indicator the signals are disabled before they are mapped. When the buy signal is mapped to short and the buy signal is disabled, the short signal will not be used.
Indicators come with a build in configuration for the signals. It allows for a few things
- Enabling and disabling buy and sell signals.
- Reversing buy and sell signals.
- Signal mapping for margin/leverage trading.
All those features combined can be a powerful tool for tuning the bot. For example, reversing the buy and sell signals of a 4-hour MACD-Histogram is common practice.
The indicator weight field will be visible when the bot has consensus mode enabled. If the thresholds are left on 0 the weight doesnt have an impact. Any positive number is allowed above 0.