I'm beginning to question whether I need to have my bot strategy focused on certain timeframes specifically at certain intervals- or should I have them all covered at one time?
ex.
Initial Focuses- Asian Session- 1hr to 15 min focus
going into London Session - 1hr upto D1 focus/considered 2hr/3hr/4hr intervals as they align withe Trading View.
What difference does it effect?
Efficiency? Data management?
Hi Zacharey,
The difference between using specific intervals and a focus on just one timeframe primarily depends on your strategy.
In general, longer timeframes are more reliable than shorter timeframes. Usually, longer timeframes are used to identify trends even if the strategy is traded off on shorter timeframes. Therefore, if needed, you can use a longer timeframe to identify trends and trade on shorter timeframes.
Hope this helps!
Thanks,
Rushda Ansari
There is too much noise on low TF.
.and it's recommended to have 3-time frames, for the long, intermediate and short-term trends
usually, the short-term time frame is the one that your going to actually trade on it.
Hello dear student,
Rushda is right that the decision about data frequency should be based on the strategy. The recommendation you give for 3 timeframes is also something that depends on the strategy.
Regarding the topic of noisiness in high-frequency data, there wouldn't be any problem in case your strategy is built to deal with this type of data frequency, such as high-frequency models.
The OHLC data, called time bars, is not the only type of data you can have for a specific asset. You have different types of data, such as:
Tick bars
Volume bars
Dollar bars
Tick imbalance bars, etc.
You can have a detailed explanation of each of them in López de Prado book.
As an advice, please think first about the strategy you want to apply and, in turn, choose the appropriate data frequency for it. You can subscribe to this Quantra course in order to learn the basics of financial data and its relationship with your strategy.
I hope this helps,
José Carlos