Monday, November 8, 2010

Balanced Bot 1.0

The Trend is your friend. In the world of currencies where policy changes are gradual, the trend reflects the market sentiment and very often continues in the same direction. Balanced Bot attempts to map out the strength (some people call it momentum, velocity, acceleration, etc.) of the EUR/USD and diagnose the market environment, and incorporates 12 different strategies. Out of the 12 strategies, 8 follow the trend, while 4 are counter-trend methods, which provide a healthy mix and balance of performance across the changing macro-economic environment. While the counter-trend strategies result in losses in a steady trend, they out-perform significantly during times of volatility and uncertainty. Each of the 12 strategies have their unique entry criteria, position sizing (scaling in and/or out), money management, and trade management with respect to shifting of Stops or closing of positions. At any particular time, only 1 strategy will be activated, and if there is already an existing position, the robot will not open another position, but focus on managing the current trade. Balanced Bot is not a high frequency scalper, and does not use hedging techniques. It usually finds a high probability set-up once every few days. Trades can last for an hour, or expand the time frame to days, as long as the shifted Stops are not taken out, and the profit targets are not met. Among the automated prototypes that I have developed, this is the best in terms of overall test results (profits, drawdown, consistency, etc.), and is currently running in live market conditions with a starting capital of USD 10,000 (starting 9 November 2010).

If anyone is interested in a partnership or collaboration, please contact me.

In subsequent posts, I will share the concepts of the other prototype systems that I have developed, although I need to warn readers that those robots lead to erratic performance or gradual losses of the account.

1 comment:

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