TWAP-the time weighted average price of a cryptocurrency. And what is used in the real world is TWAP software and TWAP charts. These can definitely take your profits to the next level if you are not already using TWAP charts. But knowing about TWAP is one thing, and knowing about how TWAP can increase your profit is another. Furthermore, when we weigh the efforts that one has to spend in learning about using TWAP to increase the profits, as compared to still trading with profits without it at all, they are worth every inch of labor. Learn on how TWAP can increase your profit easily in just a few simple steps.
Steps to Incorporate TWAP to Increase Your Profit
So we are clear on the fact that TWAP can increase profits. Now let us go step by step as to how to implement TWAP into your cryptocurrency trading model.
1. Research: Research a lot from where you are going to buy your TWAP software. Like execuitum.com can be a name that sells reliable such software pieces. Also you need to decide how sophisticated a software do you want. More advancement of features means more money while purchasing it and a heavier system in terms of IT to implement it. So even if you have the affordability, you must consider all aspects before you buy one. Rushing at this stage can destroy the entire TWAP roadmap that you have formed for your cryptocurrency business.
2. Procure: Once you’ve decided on the kind of TWAP that you need, and from where to buy it, you must now finally procure it. This can need some information from your end, as sometimes you might need customization to the software. So make sure you have an expert ready to answer all the queries of your TWAP provider.
3. Implement: You already might have digital wallets in place and functional too. Now adding TWAP inputs to trade decisions and also risk inputs made by TWAP algorithms will reform the entire system. So you must share the minimum possible information with the implementation team from a security point of view and at the same time share enough that TWAP can be implemented properly. After all it is nothing but a tiny piece of software that needs installation.
4. Experiment: Before you make your software go live, that is it starts making decisions, try various inputs and check out the outputs. This is like running a demo test session to ensure that it works upto your satisfaction and as per your requirements.
How TWAP Can Increase Your Profit
Once you have the system in place, know that your profits are going to increase. How TWAP does is by the simple fact that it makes the orders execute very expeditiously, it reduces the risk and takes care of the risk management component and last but the most important, it lets you process larger orders at same rates as it does not affect market volatility.