🧰Tools

The Tradetomato ecosystem features an ever-growing collection of tools that can be used in the module builder. These include everything from common indicators, such as RSI and MACD, to price filters and statistics. As a starting trader, it is important to find a mix of indicators that works for your trading style.

Technical analysis (TA) is a method used by traders to identify and predict opportunities within markets. It consists of statistical and mathematical calculations that are based on market data, including price movements, volume, and open interest.

Indicators

Indicators are quantitative tools used in TA to interpret and forecast market movements. In general, there are two different categories of indicators - leading and lagging. Leading indicators form predictions for price movements while lagging indicators are a reflection of historical price movements.

For example, trend indicators such as moving averages are considered to be lagging as they reflect an average of price data for a specified period of time in the past. On the other hand, a Fibonacci retracement falls under the leading indicator category as it serves to provide price predictions in market retrace situations.

Adding indicators to your conditions is very simple. Click on '+ Add Tool' and select one of the available indicators. Next, configure the indicators parameters to your liking or keep the default configuration.

You may notice that you can also add multiple expressions to your indicators. This means that your condition will be evaluated based on multiple expressions of the given indicators. For example, you can have an RSI indicator that is evaluated based on the expressions - RSI is smaller than 30, AND RSI is rising.

Available Indicators

• Relative Strength Index (RSI)

• Bollinger Bands (BB)

• Commodity Channel Index (CCI)

• Simple Moving Average (SMA)

• Exponential Moving Average (EMA)

• Kaufman's Adaptive Moving Average (KAMA)

• Moving Average Convergence Divergence (MACD)

• LR Channel (Linear Regression Channel)

• Linear Regression Curve (LR Curve)

• Average True Range (ATR)

• Stochastic (Stoch)

• Stochastic RSI (Stoch RSI)

• Momentum (MOM)

• Rate of Change (ROC)

• Money Flow Index (MFI)

• Awesome Oscillator (AO)

• Standard Deviation (STDEV)

• Supertrend

• Weighted Moving Average (WMA)

Candlestick Patterns:

Candlestick patterns are a visual representation of price movement over a specific period of time. Each candlestick consists of a body and wicks, with the body representing the opening and closing price of the asset, and the wicks representing the high and low price points during that period.

To add a candlestick pattern to your conditions, click '+ Add Tool,' and navigate to the 'Candlestick Patterns' tab at the top of the Tools component. Next, select one of the available candlestick patterns and select a timeframe on which you want the pattern to be evaluated.

Available Candlestick Patterns

• Bullish Engulfing

• Bearish Engulfing

• Morning Star

• Evening Star

• Bullish Harami

• Bearish Harami

• Piercing Pattern

Filters

Filters are thresholds that can be used to create conditions for specific scenarios. For example, imagine you have two condition blocks containing one indicator expression each. The relationship between these blocks is OR, meaning that the overall condition structure will evaluate to true if either or both conditions are true.

Now, imagine that you want to make it so that each condition block activates under different market conditions. For example, setting a price filter that evaluates to true when the price of Bitcoin is above 45,000 USDT in the first condition block will limit the existing indicator expression to the parameters provided by the filter. This allows you to set up intricate trading flows in which different sets of conditions are used depending on market conditions.

Safeties

Safeties are protective mechanisms that you can apply to your module to limit losses. The most common safety is a stop loss, which allows your module to automatically close its position when the instrument price decreases by a specified percentage relative to the average position entry price. Setting a proper stop loss can mean the difference between a winning and a losing strategy.

To add a stop loss to your conditions, click '+ Add Tool,' navigate to 'Safeties,' and select 'Stop loss.' Next, specify the scan time - how often you want your module to evaluate the stop loss. Lastly, specify the stop loss percentage at which a given position should be closed.

Available Safeties

• Stop Loss

• Trailing Stop Loss

Profit Guards

Like safeties, profit guards are mechanisms that protect against unfavorable price movements. The difference with profit guards is that they aim to secure unrealized returns rather than limit losses. The most common example is a take profit condition that closes the active position when the price has increased by a specified percentage relative to the average position entry price. With a take profit active, your module's positions will be closed if the instrument price has increased by a certain amount, irrespective of what is happening in the market.

To add a take profit to your conditions, click '+ Add Tool', navigate to 'Profit guards,' and select 'Take profit.' Next, specify the scan time - how often you want your module to evaluate the take profit. Lastly, specify the percentage increase at which a given position should be closed.

Available Profit Guards

• Take Profit