ELEVATED LEVERAGE index SYSTEM (ELiS) tries to solve the problem of adjusting meaningful leverage in futures and margin trading.
The biggest problem for traders is adjusting the leverage level manually.
Concerning about the volatilities it's very hard to set a meaningful leverage level.
ELiS includes 4 different volatility component which are:
1- nATR: Normalized Average True Range which is actually ATR/price to stabilize ATR's value differences when price changes are high on long term periods. 2- Standard Deviation 3- Kairi based nATR 4- Bollinger %B
which are scaled from 0 to 100 and takes different averages with different combinations & ratios and combines them as an index.
This index calculates an average volatility to set the true leverage level when trading futures especially in Crypto and FX markets.
There are 5 risk levels of "GEARS" like on automobiles to set the max leverage for risk management.
Gear 1 - CONSERVATIVE: max leverage level can be 20 for swing traders and beginners Gear 2 - STANDARD: max leverage level can be 25 (default) for day traders Gear 3 - AVERAGE: max leverage level can be 33 for day traders Gear 4 - RISKY: max leverage level can be 50 for scalpers Gear 5 - AGRESSIVE: max leverage level can be 100 for advanced scalpers
default length for ATR, Standard Deviation and %B are all 50
Simply: When markets aren't volatile: ELiS indicateshigher leverage values to maximize profits. When markets are volatile enough: ELiS indicates lower values to reduce risk level.
@KIvançözbilgiç hocam, harika bir indikatör daha kazandırdığınız için teşekkür ederim. en kısa sürede backtest ve live test edip, sonuçlarını bir video ile paylaşacağım. saygılarımla.