Articles on: Strategies

# How to use multiplicators ?

Multiplicators are used to multiply the value of an indicator in a condition. They thus make it possible to obtain a value derived from an indicator, and to use in your strategies values such as 105% of the current price (i.e. the current price +5%) or 98% of the current EMA20 (i.e. the EMA20 -2%).

# Example

In the strategy below, MA9 is expected to be below the closing price with a multiplier of 0.95. We will thus wait for the MA9 to be below the closing price x 0.95, i.e. 95% of the closing price.

If this strategy were to be implemented in the market below, would the condition be verified on the green candle highlighted?

- the MA9 is worth 8628.54
- the closing price is 9105.9

We have a multiplying factor of 0.95 on the closing price, so the condition is checked if :
MA < closing price * 0.95
= 8628.54 < 9105.9 * 0.95
= 8628.54 < 8650.61

The condition is checked on the green candle highlighted, and the buy order is sent at the next candle as planned in the backtest operation.

You can thus use multiplicators on all indicators that return a value.

Updated on: 06/01/2021