Update - Clarifications

This post is for folks who have the indicator.

If you are just following the regular model updates then there is no change for you. I wouldn't want you folks to get overwhelmed by a lot of details.

My core focus in the updates was/is high time frame trades and capturing big moves.

While I am happy many of you are using the indicator as a goto for many of your trades and even outside crypto

I want to reiterate a few things as I keep getting repeated questions

  • Indicator is not the entire Web3Quant system. It is a part of a bigger system.

Trading involves so many moving parts it's hard for me to answer

"tell me what should I do now" or

"indicator is showing red/green on so and so asset on such a timeframe but your update is different" kind of question.

  • You can either follow the updates or run things on your own.

    I can't tell you what you SHOULD do.

    What I can tell you is, that the updates I send out factor a lot more stuff than just the indicator.
  • 4H is just an optimized timeframe but not set in stone.

    it might not work for some of you.

    The best way to extract the maximum out of it, play around with different timeframes and see what suits your style.

    Many seasoned trader subs have come back reporting 30min or 1H timeframe has worked well for them.

    Some traders are even running it on custom timeframes like 45min/90min etc

    There is no right answer here. it depends on your strategy.

    the best part of any quant strategy is, that you can precisely see for yourself how it has signaled in the past. backtest it.

    If all of this is overwhelming for you then you can always follow the updates. entry/exits are given there anyway.
  • While the upgrade might seem like a "different" product its NOT. Core logic remains the same.

    One easy mental model to look at the upgraded version is everything is now zoomed in.

    Whatever you used to get on Daily / (3D in some tradfi cases) now you can get the same on 4H

    What you used to get on say 4H now perhaps you will see in a 30min/ 1H timeframe (not one-to-one precision but broadly).
  • I understand for some of you 1D and Weekly is sacred timeframes and thats what you have been used to.

    but I don't see any good reason to stick to them if you are getting the same or even improved signals on lower time frames.

    If you are still keen on big picture then moving averages do a decent job on weekly too. but as you know they fail on lower timeframes with chop and noise.

    W3Q indicator is designed to give the big picture on 4H but also gives cleaner signals on LTF.

    what you need to judge on is, whether it does a good enough job or not.
  • If you are not seeing the indicator line for some assets (many have given example of WIF for instance)

    then its because there isn't enough price history for that timeframe for that asset to formulate a view.

    Try using lower timeframes and you will see the line.

    I am not suggesting you go trade 5min but heres an example without any optimization.

    WIF on 5min timeframe.

    It pretty much caught all the mini pumps with high RR. and you could even short it for those who are proficient in trading.

    All of this was not even possible in the previous version.

Lastly, one major improvement in this version is the support/resistance line has gotten more important.

I'll explain using Solana as that's the example many of you have reached out with.

If the price is continuously trading below the line then it's a sign that the uptrend is getting exhausted (you can see that in the early Jan 2024 and early Aug 2023 signals too).

You could exit when that happens or wait for the confirmation.

Go to go long you can wait for the price to trade above the line along with the green light from the indicator.

These are called "confirmations". confirmations give you more reliability but also you lose some meat on the returns on that move.

The choice will depend on how you want to trade

also if you are trading on a 4h then theres no point jumping into trades as soon as you get the signal.

Always good to get optimal entry as close to the line as possible.

The same goes for exits.

in sol examples you can see how it played out post the signal in both instances.

I will update how-to guides but again these are NOT set in stone. do what works for you.

Trading is the world's most competitive sport. Only very few % are profitable.

If you expect it to be "easy" like many influencers have you believe then you surely going to be disappointed.

system can do the heavy lifting but you still have to master a lot of elements to be successful.

I know I might not say things you want to hear sometimes but know I have your best interest in mind.

Will try and do a lot more of the education part but these things take up a lot of time. Will do my best.

Stay sharp!

** Web3Quant is not registered with any financial regulatory agencies. Web3Quant content is purely for research, education, and entertainment purposes and should NOT be considered personalized financial advice. Do your own research and consult your financial advisor.**

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