Recently, we partnered with up-and-coming trading platform Mudrex, who employ a beautifully designed, custom GUI-based algorithmic trading tool at mudrex.com to help traders trade while alleviating some of the stress of constantly watching the market. Their platform allows you to build strategies to buy and sell, ranging from simple price action movement and basic indicators, all the way up to multi-tiered and logically complex algorithms. The Mudrex platform also allows sharing and following of strategies from other traders, meaning that truly anyone can use this platform to suit their trading style.
In today’s post, we will be going over some of the basic elements of Mudrex, including: creating a simple strategy, backtesting, paper trading, and live trading.
Creating a Simple Strategy
MACD (BTC/LTC) Strategy
When creating a strategy, the first thing you will see is a clickable set of buttons corresponding to various actions to perform when conditions are met.
This cell contains buy and sell blocks, as well as your stop loss (where you can set a trailing stop loss) and take profit.
You will then be met with this side bar. It is a simple drag-and-drop interface with the icons corresponding to various bits of logic such as price movement, indicator triggers, volume, and more!
To begin making our strategy, you will first drag an indicator block to the grid (the icon that looks like a bar graph with a line graph above it).
An arrow will appear on the left side of the block. You will drag that arrow from the indicator block to the buy block.
You will then do the same thing, but this time connect the indicator block to the sell block.
Next you’re going to click on the indicator block you placed on the grid and choose the MACD as the indicator.
Under the indicator block connected to the buy block, you will choose the option for MACD “Crosses Up”, which refers to the MACD crossing up above the signal line. Whenever the MACD crosses up the signal line, our algorithm will execute a buy.
Then, under the indicator block attached to your sell block, you will choose “Crosses Down” so that the algorithm executes a sell when the MACD crosses below the signal line.
Our strategy can now be backtested.
Backtests show that the strategy we made would have yielded more than 50% gains over the past few weeks, without a stop loss. We can also see that running this very simple strategy since August would have yielded a profit of 70%.
Backtesting can take some time as it simulates every price action and potential trade that could have been made throughout the timeframe you request, but it yields exceedingly value information.
Practice Trading is an essential weapon in the trader’s arsenal, allowing you to test your knowledge without losing your socks. In paper trading, you will start with a set amount of theoretical money in an imaginary account which will allow you to trade against the market without the risks or benefits of using real capital. You never lose or make any money, it’s just for practice. You can also perform this function with the strategies you make, and we highly recommend that you do.
When you have developed or followed a trading algorithm that suits your needs, and linked your Binance or BitMEX API keys, you can navigate to the Live Trade tab –next to the back test tab– and begin trading.
Mudrex is a platform you may easily use to set and forget certain strategies you know work to your goals, as well as test new strategies’ effectiveness. Their interface is clean, simple to use, and quick. The staff is friendly, knowledgable, and has a team based both in the United States and India, meaning that they have nearly global coverage in terms of support and other assistance.