Crypto trading is a difficult and complicated stream for most beginners. From getting confused into the same name abbreviations over multiple platforms for different currencies, to not being able to forecast the right picture; from getting lost into which individual crypto token to trade out of so many to finding the right exchange to trade it, there can be innumerable obstacles on the way before you become a pro. Over here, we will try to discuss one of the most common techniques of trading employed by new traders, “TWAP trading in cryptocurrency”.
What is TWAP Trading
TWAP trading refers to making use of the TWAP signals and the TWAP software so as to trade cryptocurrency. Competition is very neck to neck when it comes to crypto trading. As such, using TWAP as an aid to make trade decisions can sometimes help. The TWAP algorithm, as the name suggests, is based upon the time-weighted average price of some cryptocurrency. It is mostly used to execute larger or bulk orders while not impacting the market price at the same time. This inturn results into the trader ending up making considerable profits, which otherwise he would not have been able to achieve. This is because larger orders can take time to complete and alter prices in the meantime when they get executed. TWAP ensures that prices do not get altered while the order is being transacted, so it can be strategized in a manner that is the most profitable to the trader. To top the cherry, this can easily be done with the help of software and then can be implemented as well with the help of software known as TWAP signals and TWAP bots. TWAP is something that is not only used by beginners, but it is also used by seasoned players as it helps in bulk trading.
TWAP Trading Tips for Beginners
It is best to make use of statistics, last trade details, best quotes open, and order book records to form a compelling TWAP card for future trades. Now although all this sounds very simple, it is not so for a beginner or for a single stand alone investor. TWAP trading strategies can be extremely beneficial, but only under the guidance of experts. Perhaps this is why companies like executium.com are quickly emerging in this field and gaining rapid popularity. These companies are accessible online for all their services and they minutely check for your current portfolio and future requirements before coming up with TWAP cards.
- TWAP can help you trade very, very fast at enormously high speeds which are otherwise not possible for human traders.
- Be sure that with TWAP cards, the market volatility will not be changed or affected in any manner. So you need to strategize only once in the beginning.
- Note that it is calculated from the time an order is submitted to the time it gets completed.
- And in the end, how can we miss the formula for TWAP calculations.
Typical Price = (Open High Low Close)/4
- TWAPS can help you calculate risks as well.