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typos in documentation corrected
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docs/edge.md
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docs/edge.md
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@ -10,10 +10,10 @@ This page explains how to use Edge Positioning module in your bot in order to en
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## Introduction
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Trading is all about probability. No one can claim that he has a strategy working all the time. You have to assume that sometimes you lose.<br/><br/>
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But it doesn't mean there is no rule, it only means rules should work "most of the time". Let's play a game: we toss a coin, heads: I give you 10$, tails: You give me 10$. Is it an interetsing game ? no, it is quite boring, isn't it?<br/><br/>
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But lets say the probabiliy that we have heads is 80%, and the probablilty that we have tails is 20%. Now it is becoming interesting ...
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But it doesn't mean there is no rule, it only means rules should work "most of the time". Let's play a game: we toss a coin, heads: I give you 10$, tails: You give me 10$. Is it an interesting game ? no, it is quite boring, isn't it?<br/><br/>
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But let's say the probability that we have heads is 80%, and the probability that we have tails is 20%. Now it is becoming interesting ...
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That means 10$ x 80% versus 10$ x 20%. 8$ versus 2$. That means over time you will win 8$ risking only 2$ on each toss of coin.<br/><br/>
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Lets complicate it more: you win 80% of the time but only 2$, I win 20% of the time but 8$. The calculation is: 80% * 2$ versus 20% * 8$. It is becoming boring again because overtime you win $1.6$ (80% x 2$) and me $1.6 (20% * 8$) too.<br/><br/>
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Let's complicate it more: you win 80% of the time but only 2$, I win 20% of the time but 8$. The calculation is: 80% * 2$ versus 20% * 8$. It is becoming boring again because overtime you win $1.6$ (80% x 2$) and me $1.6 (20% * 8$) too.<br/><br/>
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The question is: How do you calculate that? how do you know if you wanna play?
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The answer comes to two factors:
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- Win Rate
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@ -21,7 +21,7 @@ The answer comes to two factors:
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### Win Rate
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Means over X trades what is the perctange of winning trades to total number of trades (note that we don't consider how much you gained but only If you won or not).
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Means over X trades what is the percentage of winning trades to total number of trades (note that we don't consider how much you gained but only If you won or not).
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W = (Number of winning trades) / (Number of losing trades)
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@ -76,7 +76,7 @@ Edge dictates the stake amount for each trade to the bot according to the follow
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- Allowed capital at risk
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- Stoploss
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Alowed capital at risk is calculated as follows:
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Allowed capital at risk is calculated as follows:
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**allowed capital at risk** = **total capital** X **allowed risk per trade**
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@ -96,7 +96,7 @@ If true, then Edge will run periodically
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How often should Edge run in seconds? (default to 3600 so one hour)
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#### calculate_since_number_of_days
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Number of days of data agaist which Edge calculates Win Rate, Risk Reward and Expectancy
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Number of days of data against which Edge calculates Win Rate, Risk Reward and Expectancy
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Note that it downloads historical data so increasing this number would lead to slowing down the bot<br/>
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(default to 7)
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@ -127,14 +127,14 @@ It filters paris which have an expectancy lower than this number (default to 0.2
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Having an expectancy of 0.20 means if you put 10$ on a trade you expect a 12$ return.
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#### min_trade_number
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When calulating W and R and E (expectancy) against histoical data, you always want to have a minimum number of trades. The more this number is the more Edge is reliable. Having a win rate of 100% on a single trade doesn't mean anything at all. But having a win rate of 70% over past 100 trades means clearly something. <br/>
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When calculating W and R and E (expectancy) against historical data, you always want to have a minimum number of trades. The more this number is the more Edge is reliable. Having a win rate of 100% on a single trade doesn't mean anything at all. But having a win rate of 70% over past 100 trades means clearly something. <br/>
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Default to 10 (it is highly recommanded not to decrease this number)
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Default to 10 (it is highly recommended not to decrease this number)
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#### max_trade_duration_minute
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Edge will filter out trades with long duration. If a trade is profitable after 1 month, it is hard to evaluate the stratgy based on it. But if most of trades are profitable and they have maximum duration of 30 minutes, then it is clearly a good sign.<br/>
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Edge will filter out trades with long duration. If a trade is profitable after 1 month, it is hard to evaluate the strategy based on it. But if most of trades are profitable and they have maximum duration of 30 minutes, then it is clearly a good sign.<br/>
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Default to 1 day (1440 = 60 * 24)
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#### remove_pumps
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Edge will remove sudden pumps in a given market while going through historical data. However, given that pumps happen very often in crypto markets, we recommand you keep this off.<br/>
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Edge will remove sudden pumps in a given market while going through historical data. However, given that pumps happen very often in crypto markets, we recommend you keep this off.<br/>
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Default to false
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