Trading bot words, in plain language.
What each term means and where it shows up.
- API key
- A code that lets an app act on your exchange account. You choose what it may do, such as read balances or place trades. A key without withdrawal permission can't move money off the exchange.
Tradenos connects to Binance with an API key and doesn't need permission to withdraw.
- Backtest
- Running a set of trading rules over past prices to see what they would have done. It shows how an idea behaved, not what it will do next.
Every Tradenos test is shown next to what holding the coin would have done.
- DCA (dollar-cost averaging)
- Buying a fixed amount at regular intervals or as the price falls, so your average entry is spread out. It lowers the effect of timing and can deepen a loss in a long decline.
- Drawdown
- How far an account or strategy fell from its highest point before recovering. A 20% drawdown means it lost a fifth of its peak value at the worst moment.
Test results list the worst drop beside the return.
- Grid bot
- A bot that places buy and sell orders at set price levels and collects small moves while the price ranges. A strong trend can leave it holding losses or out of the market.
- Paper trading
- Trading with virtual money at real prices. It teaches how a bot behaves without risking anything, and live fills can be worse.
Tradenos calls this Practice.
- Pine Script
- TradingView's language for writing indicators and strategies. On its own, a Pine strategy can't place orders on an exchange.
Tradenos runs Pine Script as a live bot, with no alert or webhook in between.
- RSI (Relative Strength Index)
- A number from 0 to 100 showing how strong recent price moves have been. Below 30 is often called oversold and above 70 overbought, and prices can stay there for a long time.
- Slippage
- The gap between the price you expected and the price you got. It grows in fast markets and thin order books.
Tests include fees, and live fills can still be worse.
- Stop loss
- An instruction to sell if the price falls to a set level, to limit a loss. It isn't a guarantee, and a fast market can fill worse than your stop.
- Take profit
- An instruction to sell when the price reaches a set gain.
- Trailing stop
- A stop loss that follows the price upward and stays put when it falls, so it locks in part of a gain.
- Webhook
- A message one app sends to another when something happens. Traders use them to pass TradingView alerts to a bot platform, which adds a link that can fail or arrive late.
Tradenos doesn't need one, because the strategy runs inside the app.
- Win rate
- The share of trades that made money. A high win rate can still lose overall if the losses are larger than the wins.
Tests show it alongside the return and the worst drop.
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