The time-weighted average price or TWAP is literally a price which is given for any product or security over a specific time. The price trade using TWAP is very narrow, but time range is very long. It is somewhat similar to VWAP what makes the difference is that VWAP is Volume based. In TWAP volume is not a big deal as we invest 50-50 volume in both first half and second half. Calculation of TWAP is very simple. All you need is that you should find the TP that is typical price. TP is sum of the close high and open proximity that is divided by four, and TWAP is simply average of TP
TP = (Close+High+Low+Open)/4
TWAP = average of TP.
For the past years, all our attention is behind crypto-currency and most of the investors are looking for cryptocurrency trade and getting profit from it, by analyzing the pros and cons of trading systems. By using TWAP algorithm one can find out whether a product is in buying side or selling side. It divides the day in segments and we can retrieve out investment in early price move before sudden death of investment falling downwards. As it spreads the investment on the market, there is no need to worry about a downfall. Here is why training of crypto-currency using TWAP take its role.
Cryptocurrency which we invest in the market will increase it's volume and we can retrieve the expanded volume after a period of time without losing the investment. This boosts up your profit. You have to be very experienced before getting your hands wet in online trading. You need to be aware about the main parameters such as close proximity, high proximity to track your investment and decide whether it is in profitable range or not. By dedicating some time exclusively for studying the market associated with cryptocurrency and learning the TWAP algorithmic online trading one can became master in this field. You can earn unlimited profit when you became a true master in this field.
Pros of algorithmic trading
Analyse the market and describe the profit faster than human intellect.
We can back test using historical data.
Transaction cost is minimum.
Enable to work 24 hours, 6 days in a week.
Entering and exciting rules are implemented for proper discipline.
Algorithmic trading is a mixture of art and science which enables the investors to gain profit. TWAP is one such algorithmic trading apps which deals with time. This provides a great opportunity for online cryptocurrency traders as they can increase the profit and volume of cryptocurrency that is invested. All that you should keep in mind is that you should be aware about the TWAP, how to use TWAP, its pros and cons well before start investing. This is truly one of the milestone for the future online trading.