Major Concepts
Last updated
Last updated
To benefit from Gigabots' powerful features, it is useful to understand the following trading concepts:
A signal is is an indicator that predicts future price direction. Signals are derived from data using AI, ML and statistical techniques. It is important to note that signals are probabilistic. No signal can predict the future perfectly. In Gigabots you decide which signals you are interested in.
Filters are criteria that determine which assets (tokens) the trader is willing to trade. Filters determine which signals you will be notified of. For example, a trader may decide to only trade tokens with a minimum liquidity of 2ETH. In this case, the trader will only be alerted when their chosen signals are triggered for tokens with minimum 2 ETH.
In every day usage, traders often confuse signals for strategies. But a strategy is very different from a signal. A signal may tell you that price will probably move in a certain direction. But a strategy is how you use this information to actually trade and make money.
Strategies are constructed using signals and filters. A strategy may use signals to filter/screen tokens and also use signals as entry/exit conditions.
Here is an example of a simple strategy:
Filter |
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Entry |
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Exit |
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Gigabots has developed a powerful signal discovery infrastructure that ingests large quantities of data and analyzes this data using advanced ML, AI and statistical methods. The aim is to identify signals that are highly predictive of future price movement.
Since markets are dynamic, we also identify the best values for certain signals.
For example, a high-swap-count is usually indicative of price moving aggressively. When combined with high buy-to-sell ratio this is a bullish signal. But we also calibrate at which value this signal is most effective. In our research, we have found that high-swap-count and buy-sell-ratio are most effective at the following values:
Swap Count of 50, 100 and 150 swaps in 5 minutes
Buy-Sell Ratio of 1.5 to 3
