Dealing w/ Flashing Alerts – Repaint – Alert Disappearing

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Estimated reading time: 3 min

Let’s start at the start so both of us don’t waste our time.

Yes, Spectro M & Pro X allow alerts to flash.

If you are one of these guys that just want to blindly follow signals and think you can get rich quickly, well, Spectro won’t be your miracle – you might want to talk to God for that.

This is an indicator, like RSI, STOCH, DMI, ATR, MACD, etc.

If you think repaint is bad because you can’t make your own decisions or because you think you’ll easily set up your own profitable trading bot in a couple clicks with some things you paid $100 on the internet…If you still believe in such things, maybe you should call J. Welles Wilder every single time you buy on RSI OVERSOLD but you didn’t profit. Fact is, probably, if you’re one of these guys you don’t even know who Mr. Wilder is.

Understand there’s no easy way to get there, the more you believe in this, more likely for you to be scammed, to be frustrated and to give up early. No one with a miracle solution will rent it for $30/mo – probably they’ll sell it for several million, trust me the same way the word BOT, SIGNAL, FINANCIAL AUTOMATION is attractive to you, it is extremely rich people as well. If you have something like this working for real, that’s an easy sell. Trust me, been there, done that.

Now let’s talk serious and understand the pros, the cons of the repaint – also, how and why it happens.

“Repaint” or Flashing Alerts happen when an alert appears and then disappears, or and flashes.

WHY DOES REPAINT HAPPEN?

First understand that indicators & alerts come from a mathematical condition such as: IF CLOSING PRICE > LAST CLOSING PRICE AND RSI IS OVERSOLD THEN PLOT BUY ALERT. We all know that the market moves fast, so the price could be higher at that certain time but then seconds later that’s no longer true.  So, in that case, the alert would appear and then disappear.

The automation newbies hate it because they want a solid condition that isn’t likely to flash like that. Because let’s say the alert flashes for the first time their bot will buy, but if the alert disappears they might be stuck with a position that will have no sell alert – that could be catastrophic. There are several ways to do this but we won’t focus this now since the goal of this tutorial is to benefit the manual traders. Usually, these solutions use “filters” to trade less or they force rules such as if the condition remains true after the bar closes – all of these solutions usually affect maximum potential profitability to deliver consistency.

Spectro M & Pro X are not meant for automation because I don’t try to avoid this problem here, and I’ll tell you why soon.

PROS & CONS

The basic cons of repainting: Confusing for beginners & horrible for automated solutions.

The basic pros of repainting: a Deeper understanding of the condition & more information about what’s happening.

Remember the alerts come from here? So if you understand your indicator you’ll know how to use it in your favor. For instance, let’s say we are using the classical RSI, and your buy condition is: IF RSI CROSSES UP OVERSOLD LINE (usually 30 by default) THEN PLOT BUY.  If you did your homework you know that RSI uses the speed of price change, so a flashing signal means that this change might not be as strong as you think so you might want to reconsider. For an acephalous “trader” the flashing means buy and now sell, buy and now sell, buy and now sell, buy and now sell, buy and now sell because he has literally no idea of what is going on. It’s always easier to blame the indicator for your poor performance than to study and evolve.

WILL YOU OFFER A NO-REPAINT VERSION?

I’m still a little insecure about sharing my automation version, the reason why I start Hypester is to educate and share solid & real experience. Offering an automated solution is sexier and a lot easier to sell, it might make more easy money, but I’ll breed a new generation of acephalous traders, I wouldn’t be able to live with myself at this point. Considering that people that look for this solutions are usually between 15-24 years old and have less than 1 year of real trading experience, so I would be pretty much teaching a bunch of kids to be lazy while reinforcing their belief in easy solutions and instead of making them more financially independent they will become more dependent than ever. (of me)

I’ll first offer an automation course, and if we have some good pupils coming out of there I’ll probably share my automated version somehow, no promises.

Thank you for reading.

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