Introduction to Blockcircle Momentum Trading Engine

What you’ll learn?

1. Understand the basics of the Blockcircle momentum trading engine, a fully configurable trading engine (not just a bot) that helps develop promising trading strategies through backtesting and forward testing.
2. Learn the characteristics of an attractive trading strategy based on backtesting metrics like profitability, number of trades, time period, win rate, drawdown, and average trade profit.
3. Find the momentum trading engine in TradingView and follow the four main configuration steps:

• Set the backtesting time period
• Define entry conditions
• Define exit conditions
• Set general properties like long/short, limit orders, and alert messages

1. Analyze the performance of a promising SOL/USDT strategy using momentum trading engine version 1, understanding key metrics like net profit, max run-up/drawdown, win rate, and individual trade analysis.
2. Discover the impressive long-term performance of a SOL/USDT strategy using the upgraded momentum trading engine version 2, significantly outperforming buy and hold.
3. Explore version 2 configuration options in detail, including entry conditions (RSI, Heikin-Ashi, stochastic, open interest, price levels) and exit conditions (stop loss, take profit, trailing stops, invalidation criteria).
4. Set up custom alerts in TradingView and learn how to connect them with trade execution services like 3Commas, Mudrex, and Coinrule for automated trading.
5. Understand optimal portfolio structure and risk allocation based on wealth building vs. wealth preservation goals, including examples of aggressive and conservative crypto portfolios.
6. Learn the importance of diversification, correlation, position sizing, and using a maximum loss formula that accounts for leverage, funding rate, stop loss, and liquidation mechanics.
7. Access additional resources and quizzes in the Blockcircle online learning platform to further knowledge of trading and technical analysis concepts.

Content Chapters

00:00 – Introduction to Blockcircle momentum trading engine versions 1 and 2
00:28 – Momentum trading engine is a fully configurable trading engine, not just a bot
00:48 – Characteristics of an attractive trading strategy from backtesting
02:28 – Finding the momentum trading engine in TradingView
03:24 – Four steps to configure the momentum trading engine
04:00 – Step 1: Set the time period for backtesting
05:44 – Step 2: Define entry conditions for trades
07:16 – Step 3: Define exit conditions for trades
07:34 – Step 4: Set general properties like long/short, limit orders, alert messages
08:43 – Analyzing the performance of a promising SOL/USDT strategy using version 1
13:17 – Performance summary metrics explanation (net profit, max run-up/drawdown, win rate, etc.)
16:29 – Analyzing the list of individual trades and matching them to the price chart
18:35 – Exporting and sharing the trading configuration
19:15 – Introduction to momentum trading engine version 2
20:16 – Impressive performance of SOL/USDT strategy using version 2 since 2020
22:30 – Using momentum engine for trade entries while manually managing exits
24:57 – Strengths of the version 2 SOL/USDT configuration
25:27 – Area for improvement: handling choppy range-bound markets better
28:47 – Detailed walkthrough of version 2 configuration options
29:20 – Step 2 entry conditions: RSI, Heikin-Ashi candles, slow stochastic
32:42 – More entry conditions: open interest, price levels of BTC and other major coins
35:03 – Price level entry condition and bands based on EMA percentage
38:06 – Step 3: Exit conditions (stop loss, take profit, exit on opposite signal)
39:01 – Trailing stop loss and using higher timeframes for exits
40:44 – Momentum and Heikin-Ashi invalidation for exits
41:17 – Step 4: General settings for long only, short only, etc.
41:22 – Setting up alerts in TradingView
43:00 – Configuring alert notifications and message content
45:07 – Using input fields for compatibility with trade execution services
46:19 – Automating alerts with 3Commas using signal bots
47:27 – Process for other trade execution services like Mudrex and Coinrule
48:39 – Using unique IDs from trade execution services in alert input fields
50:26 – High level overview of alert transmission from TradingView to exchanges
52:26 – Optimal portfolio structure and risk allocation
53:54 – Two main portfolio goals: wealth building vs. wealth preservation
56:03 – Aggressive vs. conservative crypto portfolio examples
57:41 – Detailed breakdown of a 50/50 high risk/low risk portfolio
59:13 – Managing a portfolio of 25 high risk microcap/smallcap positions
1:01:11 – Importance of having a maximum loss formula considering leverage
1:02:16 – Liquidation price, margin calls, and exchange preemptive position closing
1:04:02 – Calculating total transaction costs (slippage, fees, funding rate)
1:04:23 – Using CoinGecko and exchange order books to estimate slippage
1:06:05 – Conclusion and additional resources in Blockcircle online courses