Thanks to Teacher Da Shou for the explanation, I gained a lot.
I believe that building a detailed trading system for professional traders in the cryptocurrency space requires integrating multiple functional modules such as real-time data collection, technical analysis, risk control, and trade execution, thereby providing a scientific basis for trading decisions and efficient execution support. In terms of system architecture, it is essential to first establish a stable and efficient data processing platform. By capturing data from multiple exchange API interfaces, deep data integration can be achieved, ensuring the accuracy and timeliness of market data. At the same time, the system should integrate a high-performance matching engine and order routing mechanism to ensure quick response and transaction completion even during significant market fluctuations.
At the level of technical indicators, the detailed system needs to incorporate various technical analysis tools such as Moving Average (MA), Relative Strength Index (RSI), Bollinger Bands, etc., and finely tune their parameters based on historical data and market characteristics. For example, for moving averages, 5-day, 20-day, and 60-day averages can be set to capture short-term, mid-term, and long-term trends; while the RSI indicator can be set to a 14-day baseline period, with overbought and oversold ranges set around 70 and 30 respectively, to timely identify market reversal signals. The Bollinger Bands parameters can be set based on standard deviation to flexibly adapt to market fluctuations.
In addition, the system also needs to establish a rigorous risk control module, utilizing strategies like stop-loss, take-profit, and position management to achieve scientific allocation of funds and dynamic monitoring of risks. By combining the quantitative strategy backtesting module, traders can simulate the performance of different indicator parameter combinations, further optimize strategies, and enhance overall profitability. Overall, this system not only requires precise and scientific settings of technical indicators and parameters but also needs to achieve closed-loop management from data to decision-making to execution through multi-level risk control and flexible execution strategies, providing solid technical support and operational assistance for professional traders in the complex and ever-changing cryptocurrency market.