Tom Demark Sequential (TD) CRYPTO TRADING STRATEGIES
Hi, and welcome back. Today I want to talk about the TD (Tom Demark Sequential) indicator, and I want to show you how you can use the TD (Tom Demark Sequential) indicator to send buy and sell signals to our crypto trading bot. As you probably know, you can use every indicator that you, for example, find on TradingView to send signals to our fully automated crypto trading Bot. If you don’t have an account already, please go over to https://tradingbot-solutions.com you could, type in https://tbs.one then you will come to our website and click on any of these green buttons to sign up for our free version of the trading bot. This will give you a fully functional version where you can paper trade – fill out that form, and you are ready to go. After filling out the form, you will arrive in your dashboard, and the dashboard looks like that.
I just created a new user for this video so I can show you what’s going on and how you have to set up everything and can get your indicators. I would recommend you to go to your settings first and then modify your time zone. This will allow you to see the signals in the same time zone or in the same matching time as it comes from the exchange. Of course on the exchange also, make sure you put on, the right time zone and if you’ve done that you can virtually trade. That means all you need to start now, is to set up your first Bot. But what I want to do today is I want to show you how you can connect your TestNet BitMex TestNet. In this case, there is already a virtual bot that will help you to trade virtually on the BitMexTestNet.
The thing is if you want to see what the Bot is actually doing on the BitMexTestNet, if you want to view open positions and so on to make sure that everything is alright, you have to set up your own connector because otherwise we will just create it virtually in the background that it will not get sent to an exchange so you can’t match it up if you want to do that. I show you how to do it now. So you would add a new connector here. You would say I do now setup a short BitMex TestNet trade and I would pick TestNet, and you need to make a real connection, out of that. So this would be a real connector. To do that you have to sign up for a paid plan, otherwise you can just virtually trade if you want to send it to your real exchange, even if it’s only a BitMex TestNet account, then you need to pull that over here, and I set up a short account now and then make a long account because then you can short trade and long trade at the same time.
You could even use the same Bot to do that. You need to go over then to your BitMex test account. This is one of my test accounts. And then you would have to go to the navigation element account to API ks, and I name it here. Short BitMex Test and TD (Tom Demark Sequential). So I know it later. And I would say you have to pull in here order, don’t do a withdraw because otherwise, technically we or the Bot would have the information to withdraw also money. We can’t read your, API key or whatever out of the database because it’s encrypted. So don’t worry about that, but you don’t need to tick that I just want to let you know. So after that, it will just press on create an API key, and it will create your API key. You copy this id, go over to your dashboard, copy in the ID here, copy this id there.
Of course, don’t show it to anybody. If you do that, I will delete it, delete it anyway, so it does matter. I press on add, and it will already add my short BitMex test account if I want to check if it’s working, I go into the connectors again and press on the test button then we will perform a test. You see the API is working just fine. You can change the keys, and whenever you want, we never see your API key and secret also not in the database. It’s stored safely. If you want to trade short and long, you need to set up also a long, BitMex test account. So you need two test accounts. Also, if you would trade on a real BitMex exchange, then you also need to have two accounts, so this will be the long BitMex test account. And I would also do the TestNet here, the real one again and I prepared another one here, and we go to account, and we go to API keys.
We go here that was the long BitMex test account, TD (Tom Demark Sequential) then we say order, and we create a key, then copy, the key over here, we go back to the other window copied. And here I have it on the second screen. Now I copy it in here, API secret and I added, then I want to test it again. I go, I have a long here a short here. I click on the long; I click on test to check the connection. We’ll see it’s getting confirmed here. Everything is working fine. And now I can start with the setup; I can go to my bots section. And you see this is a new account. So everything is empty. I begin to make a new body a new trading bot, but now I’ve got three options. I can add a TradingView bot so that I can receive signals from TradingView.
I can copy some other setups and very soon we will have our own system to set up signals. So you don’t need external, trading signals or sources anymore. I press on here, create my Bot, and then I will click on the single form because I don’t want to go through the setup wizard I click here and I will show you now how easy it is to automate your crypto trading strategy. It doesn’t matter what it is because this account is new. I will guide you now through all the fields. You can go through it if you want. So I explained here all the areas, what they can do and so on. So let’s give it a name. I would call it, short BitMex Test TD and it will be a TradingView Bot, it will trade short.
Remember, most of the exchanges will not allow you to trade short and long on the same account. So this will be a BitMex TestNet, and it will be trading, Bitcoin USD on BitMex, it’s called XBT. We have the strategy, let’s call the strategy short TD, and we put maybe the timeframe if you want. So we could name it including the timeframe. Let’s then have a look at what kind of timeframe we want to trade. Let’s say just for an example, you can trade every time frame, but the TD indicator does not work that well on the lower timeframe. So let’s pick it two-hour timeframe or maybe a higher one. Then we don’t have any signals here, so it’s clearer. We have already, TradingView is now loading the four-hour chart and let’s try it on the four-hour chart.
If you don’t know how the TD indicator works, I will explain it to you as well. Of course. So let’s continue here. Let’s do that on a four hour. So you can name your strategy and your Bot, however, you want to call it. And I want to put in here hours four hours in then we have the connector. Now, because we already set up our connectors before, we can create virtually like a before. So this will not send any signals to your exchange. But we can also trade here with our connectors. So because this is the short strategy, I pick the short here, I will trade with 0.01 BTC volume. So this is per trade. Then I say I limit my number of trades to three, and I will leverage trade 10 x. BitMex leverage trading is also a great feature we implemented. So now you can leverage trade on the BitMex TestNet, and you can also use it on BitMex.
We also have it for Poloniex to leverage trade. So you can make ten times more money. And I have very exciting news for you as well. From next week on, we will be able to implement, leverage protection. So that means execution protection that we will fire a stop loss if you wanted before you get executed. So basically, we can 100x leverage trade, and we will try to make sure that you’re not getting executed. You can say here, okay, I want to use the closing signal. You could also close the trade, via taking profit or via a stop-loss, so you don’t have to close the trade, but I will use it. In this case, I will wait for the closing signal to close my trades, and I will close it for every trader open.
I will close the trade with the next selling single that comes in. I would also have the opportunity to close all open trades with one closing single, but I don’t do that in a moment. I’m not taking profit at the moment, so I could say if it goes up to 10% profit than the Bot, will close the trade automatically. I’m not doing that. I am not using a stop loss at the moment. It depends really on a strategy because as you will see in my strategies, I will use two signals that will close my trade. So I don’t use a stop loss because I’m very confident that this will close my trades anyway. So now it’s effortless to implement. First of all, if you’ve never used the Bot before, what you’ll need to do is actually to make sure that your TradingView account, will send the signals here to this email address (firstname.lastname@example.org) And this is the settings that you need to modify in TradingView.
Let’s go back and make sure you understand what I’m talking about. So if you go to your Start screen on your TradingView account, you have got the opportunity to get into your settings here. This is my user. I click on it, and I go into, user settings. Then profile settings. And in the profile settings, you will see you have two options. You have your primary email address. So you have the possibility here that you have that email up here. But don’t change this primary email, change the email here. So the SMS email is essential for you to here. You need to put that our Email Adresse in here. We will send the signals to your Bot, and because of your email address with this in your alert syntax, we know that’s your signal, and we have to send it to your Bot.
So in this case, if you want to open a short trade and here if you’re going to close a short trade, this is the line that you have to copy out. Just copy this line, go to your TradingView account. So we go back now to the charts for the four-hour chart of XBT. It’s essential that you, of course, are on the right chart. You need to be on the XBT chart or whatever you’re trading. We have to be an XBT chart now because we are using that and just having a look and I show you what strategy we are setting up. Now we are on the right time frame — we on the four hours. There’s a problem that is not solvable at the moment because TradingView does not have TestNet charts.
This means that we are setting up our trading strategy on a chart that doesn’t match the TestNet. Let’s have a look here at the moment. We are at 9,990 here on XBT. If I go over to the TestNet, you will see very different numbers. So we are here at 10,040, so it’s basically around $50 difference, and the charts are also quite different. If I go to a four hour here, then you can see we have now, you know this green candle here and let’s just come over him. It matches up. It matches almost up, but the price is very different. So the problem is that your results will not be perfect if you trade on a chart with is made for the real BitMex account. But you are basically, trading on, the TestNet that has different numbers, right?
But we decided to implement it like this so you can test it. You can see, ah, okay, that position is coming in, the trade is getting filled. When the next position is getting in, then it’s added to the position and so on. So it’s a solo for this purpose that it can see how it works on the exchange. If you don’t want to have real numbers, you can also create a BitMex virtual Bot if you’re going to do that of course, you can connect your real BitMex to it. Just to let you know the strategy is always the same. What we are going to do now is we want to set up our first short trade, and this is very easy, and as you see here, this would have been very profitable already because what I will do now is I set up my trading strategy that it will buy on a red two.
When the red two is close now when this bar is closed, then I will buy it, and I will sell it when a red eight is closing. So, in this case, this would not have worked out well; it would ben break-even trade. But here it will be in a red two on, on a green eight. So this would be quite profitable. And we can also do that the other way around. That trade would have been very profitabl. We would have bought it here on a gree two. We are going to set up a strategy like this later and sell it on a green 8. So this is a nine, 9,800 to 10,500 that’s not bad a 700 it’s around $700. We would have made with that depending of course on how much we traded.
So let’s go ahead and set up or the first strategy here. I will now open a short trade to do that. Of course, you need the TD indicator. You can apply the TD indicator to your charts, and you can add your alerts. I go ahead and pick the TD indicator. I have two TD indicators, and I will show you later what it is all about. So I picked the TD indicator, and I will say setup 2. These are the green candles. It’s not so easy to know, but we tested a lot this the green candles. So the setup two would be a green 2, these are the red candles. So I have pressed here, set up two, this will be a red two. And then I say greater than.
I just put in a 0 here, ever indicate, and every indicator needs a different alert strategy. So this is what is working best for us at the moment. So this is just the name of the indicator, red two greater than value 0 only, and I do it once per bar close, but because I just wanted to fire when the bar is closed, then I need to make sure I would set it to open ending. And you may have to make sure this is one of the most important things that you have to tick this Box here to make sure the indicator arrives at our Bot. Then I copy in here the signal and just press and create TradingView Alert. It will give me this warning, but that doesn’t matter. It’s all fine. Just continue anyways, so I already set up. Now my buying signal is set up. If the next green two will come up, the Bot will buy it automatically buy because the signal will come in and the BOT will buy it.
Now I want to, of course, sell it as well. I want to sell my short, copy the second line of code here. I go back to my indicator. I press on the indicator again; I pick the indicate that I want to trade on. Now I select setup eight, which will be our red eight you can choose any strategy you wish to. You could sell it on a red seven or at six or by on a red one or whatever you want to do the same strategy. I pick a 0 here. I say once per bar close, and I put in the selling strategy here also make sure it’s open-ended, and it is sent email to SMS. The Box needs to be ticked again; I created, I confirm it. That’s all I need to do. So now we set up here the buying signal, the buying shorts, the selling short.
And one other thing, I want to do, because I didn’t set up a stop loss. I want to make sure that I’m safe and I found it excellent working for us that we also implement a sell signal on a color flip, and everywhere you see this x, this is a color flip, this is a different indicator also a TD indicator. But this TD indicates he has got a color flip alert. So whenever there is a color flip, the Bot will sell it to. So I go to the charts again, click on the chart, the right mouse, click on charts, ad and alert and now I picked the other indicator, this is the other one. Then I go on the color flip. Then I do the same here, greater than, put a 0 in here. But now what I want to do is once per bar, so that color flip as soon a color flip appears that signal, the alert will be fired and my Bot will sell it straight away.
So I’ve got now two selling signals, one buying signal for short trading what you want to do now also very easy.
Now we want to do that the other way around to do that, that the other way around, I would recommend just to set up a new bot. The problem is that you cant use two connectors in one bot if you do that virtually it works. If you have a virtual Bot, you could trade short and long and one account. That’s why we have also “both” in the options here in the pulldown you don’t have to set up two if you trade virtually. But if you want to send signals to an exchange and the exchange doesn’t allow short and long at the same time, you need to set up a second bot you’re not limited to the numbers of bots you can set up. Press create and start here. Then your first Bot is created and started, and it will immediately show up in your Bot section. If you want to change the Bot, click on it.
Then you can edit the fields. You can’t edit all the fields because this would mess up the Bot. So if you want to change anything you can do that, and also if you’re going to create the second Bot, it’s straightforward. We just copied a Bot, we go here, and now we make a long Bot. The other one was called short and be making a long bot now, we have to change this too long, and we just picked a long BitMex account. We don’t have to do anything else. Now we have the new lines here, and we go back to the charts, and now we already have the strategy or the Bot for the long trade, so I do the same as I have done previously. I got the indicator.
I star with setup two that is a green 2. I say greater then I say value 0, I say once per bar close and I will also copy the alert syntax in here. I make sure the send Email to SMS box is ticked – but generally if you did it once it will stay ticked. I created, I confirm. Now I will again set up two long selling signals. It’s straightforward to do. I go on the indicator; I pick the TD indicator. In this case, I choose the green eight; I select greater than value 0. I choose once per bar close. I copy in the long-selling signal insight the TradingView alert box, and I confirm it. I go back and apply the other TD indicator to my chart. I select, color flip and I copy the alert syntax in again, but in this case, I want to show you, you don’t even have to do that.
You can go back to the color flip indicator we set up already. Let’s see if we find it. Is it this one? Yeah, it’s the color flip. Because we already set up a color flip. I make a separate, so a comma and it just copy in the new signal here and save it, so I don’t have to set up a new alert for this because I’m already firing this alert. You have to put in the new line of code and every single work. So I create and start it my trading bot now. That’s all you have to do, and this is the way you can set up all your strategies. Now we set up a bot that automatically all the time whenever at here on the four-hour chart, whenever a red two will appear on your chart, the Bot will automatically send that trade to the exchange.
That Bot will automatically make sure if a red eight appears, it will sell, or if the color flip appears it will sell. If a green two comes up, the BOT will automatically buy it for you. If a green eight comes up, that Bot will automatically sell it for you. And your Bot will also be able of course, to sell it on a profit % level. And don’t forget we are leverage trading on 10 x. So this is a great thing. And watch out for our next features that will come.
Please go ahead to your dashboard. Sign up for our next webinar. I’m sure you can learn a lot from this webinar. And like I mentioned, you can do this with all your indicators. You can trade every indicated that you have on TradingView if you can send an alert.
I hope that was useful and I see you in the next video. Have a beautiful day, and happy trading. Bye Bye.