From a0abd32805bee0c57276115ca0adc49d835a9bbc Mon Sep 17 00:00:00 2001
From: HojouFotytu <36724681+HojouFotytu@users.noreply.github.com>
Date: Tue, 4 Dec 2018 22:54:27 +0900
Subject: [PATCH] Created How It Works (markdown)

---
 How-It-Works.md | 109 ++++++++++++++++++++++++++++++++++++++++++++++++
 1 file changed, 109 insertions(+)
 create mode 100644 How-It-Works.md

diff --git a/How-It-Works.md b/How-It-Works.md
new file mode 100644
index 0000000..52a389c
--- /dev/null
+++ b/How-It-Works.md
@@ -0,0 +1,109 @@
+**Profit Trailer Magic** analyzes price trends of your trading pairs (defined in the **Profit Trailer** settings) and updates the **Profit Trailer** setting files with values you chose for the matching market conditions. 
+
+![](https://i.imgur.com/urBObzs.png)
+
+As you can see in the example you can have multiple sets of triggers for multiple market trends with different time frames. All this is defined by you in the **settings.analyzer.json** file. For a reference of all settings please have a look at the [analyzer settings](https://github.com/Legedric/ptmagic/wiki/settings.analyzer) page in this Wiki.
+
+## Defining market trends
+
+At first you need to define the market trends you want **PT Magic** to base its triggers on. There are 2 sources of price information you can use:
+
+* CoinMarketCap.com
+* Your exchange (e.g. Bittrex)
+
+Add as many trend definitions to the ""MarketTrends" section as you need and define a source platform and time frame for them. The default settings **PT Magic** comes with have the following trends:
+
+>       "MarketTrends": [
+>         {
+>           "Name": "CMC24h", 
+>           "Platform": "CoinMarketCap", 
+>           "MaxMarkets": 50, 
+>           "TrendMinutes": 1440
+>         },
+>         {
+>           "Name": "Exchange1h",
+>           "Platform": "Exchange",
+>           "MaxMarkets": 50,
+>           "TrendMinutes": 60,
+>           "TrendCurrency": "Market" 
+>         },
+>         {
+>           "Name": "Exchange12h",
+>           "Platform": "Exchange",
+>           "MaxMarkets": 50,
+>           "TrendMinutes": 720,
+>           "TrendCurrency": "Market"
+>         },
+>         {
+>           "Name": "Exchange24h",
+>           "Platform": "Exchange",
+>           "MaxMarkets": 50,
+>           "TrendMinutes": 1440,
+>           "TrendCurrency": "Market"
+>         },
+>         {
+>           "Name": "Exchange24hUSD",
+>           "Platform": "Exchange",
+>           "MaxMarkets": 50,
+>           "TrendMinutes": 1440,
+>           "TrendCurrency": "Fiat"
+>         }
+
+So if you don't care about the CMC market prices and want to focus on your exchange just delete the first market trend block.
+
+## Defining triggers
+
+Triggers can be defined for ALL pairs (GlobalSettings) or single pairs (SingleMarketSettings). Having them for single pairs allows **PT Magic** to set sell only mode for only one pair when it's pumped or crashing.
+
+**PT Magic** does not use all coins from the exchange to calculate the trend. Which markets are taken into account depends on the trading settings in your **Profit Trailer** PAIRS.PROPERTIES file. If you use a whitelist of pairs only the markets in this list are used. If you trade ALL pairs (even with a blacklist) the top x pairs (by volume) are used. X is the number you define with the property "MaxMarkets" in the settings.analyzer.json for this market trend block (50 in the default files).
+
+>         {
+>           "Name": "Exchange12h",
+>           "Platform": "Exchange",
+>           "MaxMarkets": 50,
+>           "TrendMinutes": 720,
+>           "TrendCurrency": "Market"
+>         },
+>         {
+>           "Name": "Exchange24h",
+>           "Platform": "Exchange",
+>           "MaxMarkets": 50,
+>           "TrendMinutes": 1440,
+>           "TrendCurrency": "Market"
+>         },
+
+**PT Magic** checks the triggers for all market trends. If one or more triggers match some properties in the **Profit Trailer** files are updated with the values you want.
+
+>       {
+>         "SettingName": "ToTheMoon",
+>         "TriggerConnection": "AND",
+>         "Triggers": [
+>           {
+>             "MarketTrendName": "Exchange1h",
+>             "MinChange": 0
+>           },
+>           {
+>             "MarketTrendName": "Exchange12h",
+>             "MinChange": 1
+>           },
+>           {
+>             "MarketTrendName": "Exchange24h",
+>             "MinChange": 3
+>           }
+>         ],
+>         "PairsProperties": {
+>           "ALL_trailing_buy": 0.15,
+>           "ALL_sell_value": 1.3
+>         },
+>         "DCAProperties": {
+>           "sell_value": 1.3
+>         }
+>       },
+
+In the example above you see that the setting "ToTheMoon" is applied when the 1h price change of the exchange is greater than 0%, the 12h change greater than 1% and the 24h change greater than 3%. If these conditions are matched the following **Profit Trailer** settings are changed (to maximize the profit in a good current overall market):
+
+* PAIRS.PROPERTIES: ALL_trailing_buy to 0.15
+* PAIRS.PROPERTIES: ALL_sell_value to 1.3
+* DCA.PROPERTIES: sell_value to 1.3
+
+Other sets like "TankingDown" in the default settings set more conservative values to protect you from buying at bad conditions.
\ No newline at end of file