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Timeframes and Parameters Details

English | 日本語

Overview

This document explains the timeframes (candlestick intervals) used by each trading strategy and the units of parameters.

Parameter Units

Important: All period parameters (period, ma_period, ema, etc.) represent "number of candlesticks". The actual time is determined by the timeframe used by each strategy.

Timeframes for Each Strategy

1. Simple MA Strategy - 5-minute timeframe

  • Timeframe: 5-minute (5m)
  • Parameter to actual time relationship:
    • fast_ma_period=10 → 10 candles × 5 minutes = 50 minutes
    • slow_ma_period=30 → 30 candles × 5 minutes = 150 minutes (2.5 hours)

Rationale:

  • Moving average crossover is a simple strategy, suitable for high-frequency trading signals
  • Quickly catches short-term trend changes
  • Suitable for day trading and scalping

2. RSI Strategy - 15-minute timeframe

  • Timeframe: 15-minute (15m)
  • Parameter to actual time relationship:
    • rsi_period=14 → 14 candles × 15 minutes = 210 minutes (3.5 hours)

Rationale:

  • RSI measures relative strength, requiring a reasonable period
  • 15-minute timeframe reduces market noise and generates reliable signals
  • Provides adequate trading opportunities while avoiding excessive trading

3. Bollinger Bands Strategy - 15-minute timeframe

  • Timeframe: 15-minute (15m)
  • Parameter to actual time relationship:
    • bb_period=20 → 20 candles × 15 minutes = 300 minutes (5 hours)

Rationale:

  • Accurate volatility measurement requires an adequate period
  • 15-minute timeframe smooths price fluctuations and improves band reliability
  • Suitable for detecting squeezes and breakouts

4. MACD Strategy - 15-minute timeframe

  • Timeframe: 15-minute (15m)
  • Parameter to actual time relationship:
    • fast_ema=12 → 12 candles × 15 minutes = 180 minutes (3 hours)
    • slow_ema=26 → 26 candles × 15 minutes = 390 minutes (6.5 hours)
    • signal_ema=9 → 9 candles × 15 minutes = 135 minutes (2.25 hours)

Rationale:

  • MACD captures medium-term trends and momentum
  • 15-minute timeframe achieves a balance between responsiveness and reliability
  • Provides sufficient period for divergence detection

5. Grid Trading Strategy

  • Timeframe: Variable depending on strategy implementation
  • Parameters: range_period is the period for range calculation

Rationale:

  • Grid trading functions in ranging markets, adjustable according to market conditions
  • Requires understanding of long-term price ranges

6. Breakout Strategy

  • Timeframe: Variable depending on strategy implementation
  • Parameters and usage:
    • lookback_period=20 → Support/resistance line calculation period
    • atr_period=14 → Volatility measurement period

Rationale:

  • Breakouts occur across various timeframes
  • Optimal timeframe selection depends on market conditions

General Principles of Timeframe Selection

Short Timeframes (1-5 minutes)

  • Advantages:
    • Quick response
    • Many trading opportunities
    • Captures small price movements
  • Disadvantages:
    • High noise
    • Increased false signals
    • Higher trading costs

Medium Timeframes (15 minutes - 1 hour)

  • Advantages:
    • Good balance between noise and signals
    • Moderate trading frequency
    • Higher trend reliability
  • Disadvantages:
    • Somewhat slower response
    • May miss short-term opportunities

Long Timeframes (4 hours - daily)

  • Advantages:
    • Very reliable signals
    • Captures major trends
    • Lower trading costs
  • Disadvantages:
    • Slow response
    • Fewer trading opportunities
    • Potential for large drawdowns

Customization Recommendations

  1. Adjustment based on trading style:

    • Scalping: Consider shorter timeframes
    • Swing trading: Consider longer timeframes

  2. Adjustment based on market conditions:

    • High volatility: Longer timeframes to reduce noise
    • Low volatility: Shorter timeframes to capture small movements

  3. Adjustment based on risk tolerance:

    • Low risk: Long timeframes, fewer trades
    • High risk: Short timeframes, frequent trades

Important Notes

  • When changing parameters, be aware of the conversion to actual time
  • Recommend validating optimal parameters through backtesting
  • Regularly review parameters according to changing market conditions