New release "BBands Trend Follower 01.22"
- Demo Version with 6 optimized parameters.
- 1 Year License ready to trade with 27 optimized parameters (Forex,Indices,Metal,Crypto,Commodities Oil & Natural Gas)
In the new release we have added and implemented the following parameters:
- MaxHigh/MaxLow Months Limit (up to 2 years): Stop open & Close trades. TimeFrame Monthly applied.
- Consecutive Losses Filter: for a preventive protection this filter is always active. Parameters from 2 to 10, default 5.
- Gap/Spike Protection: Always active. It protects against opening "Gaps" and sudden "Spikes" that can generate continuous opening and closing of positions.
- Strategy Auto Select: with the cBot running, change automatically the strategy (Reverse or Breakout) after a certain number of losses specifying from the parameters after how many losing trades will be applied.
Added 3 more exit strategies:
- StopLoss Follow Up
- StopLoss Follow On Media
- Follow Short
- Solo SL/TP exit: if selected, it uses StopLoss or TakeProfit as the only exit strategy.
- SL/TP & BreakEven: if selected, it helps the main exit strategy or the "Solo SL / TP exit" in bringing the StopLoss above EntryPrice as soon as you are in profit.
- Money Management (Position Sizing) on winning and loosing trade. If the previous position was closed with a profit, increase the volume of the next position. If, on the other hand, the previous position was closed at a loss, it decreases the volume of the next position. From the parameters you can set the amount of volume to increase or decrease by specifying after how many losing trades will be applied.
The Trading System uses Bollinger Bands for volatility, but is used in a different way than usual, with long periods and Standard Deviation from 0.1 to 1 with a weighted moving average (it looks like a river). The Bollinger Bands serve mainly as a filter in entering the market avoiding periods of laterality.
cBot can be set as Reverse or Breakout strategy, the optimization will indicate the best strategy for each particular Currencies Cross, indices, Metals, Crypto Currencies.
Exit strategy is Trend Follower.
This strategy is characterized by more trades in loss of small amounts and less trades in gain with larger amounts, the ratio is 55/60% trades in loss and 45/40% trades in gain.
The strategy exploits the evolution of the trend while cutting losing positions if the market moves against.
Money Management with Position Sizing on winning and loosing trades.
In the event that there is a series of loss trades, Position Sizing (on Lose) is very effective as it reduces the amount of volume (lots) after each losing trade.
If you have a series of winning trades the Position Sizing (on gain) increases the volume (lots) quantity after each winning trade.
Money Management can be activated or deactivated.
STRATEGIES DO NOT USE ANY GRID SYSTEM OR MARTINGALE
In the markets of the major Forex Currencies Crosses, Metals, oil, Indices and Crypto some of them adapt better on Reverse/Breakout strategies and you can find it out through optimization.
In the strategy:(All positions are protected with StopLoss)
- Select Reverse/Breakout strategy
- Strategy Auto Select
- Gap/Spike Protection
- Solo SL/TP exit
- SL/TP & BreakEven
- StopLoss & TakeProfit are automatically assigned. (Depending on volatility and volume traded in the book)
- Money Management (Position Sizing) on winning and loosing trade.
- Exit Strategy: Trend Follow (TakeProfit is floating and is used only as security in case the bot is no more controllable due to connection failure or other causes. When the Bot is active the position is closed only by the StopLoss which Trails).
- As soon as you enter the market if the price moves against your position, the Position is closed before the stop Loss is touched. As soon as the Trend Follower is automatically activated, the position is closed only by the Trailing Stop Loss.
The Trading System has been designed to work at the best with all types of Forex Cross Currencies, Metals, Oil, Indices, futures and Crypto Currencies that are sensible to Reverse or Breakout strategies.
Pay attention to the Trade volume for each instrument as it changes from Forex to CFD (Indices, Metals, Oil, Futures and Crypto Currencies). Some Brokers for CFDs give you the opportunity to trade all of them with micro lots. Others use different Lotsize (example for Indices minimum 1 contract, Gold 0.1 / 1 Oz).
In the Trading System, if you enter a wrong Volume value, the Bot will automatically use the minimum tradable volume.
Warning: when trading CFDs the results can vary widely between one broker and another. The suggestion is to operate on CFDs using the same broker on which the optimization was made.
Backtest and optimization must be done considering the following parameters at best (lined up in sequence of importance and priority):
- SharpRatio: (which is a reward to risk ratio) minimum value 0.13
- Max Balance Drawdown & Max Equity Drawdown: Max 15% better under 10%. Discard higher values. Rather than earning, you should consider what you can lose. If you don't pay attention to Drawdown, working with a high leverage is very easy to lose the whole capital. With high leverage you can earn a lot compared to the capital but you can also easily drain the whole account. Using Position Sizing (on gain) you can double or triple the earnings and in this case the Drawdown can go up to max 23%. Do it only if it is worth on increasing the gain. To reduce the Drawdown use Position Sizing (on lose) the gain in this case will be slightly reduced.
- Profit Factor: minimum value 1.40 - better if it is higher than 1.50
- Net Profit
- Trades number: all optimizations must be done over a minimum of 9/10 years period to have reliable results. Discard total trades below 100 over a 9/10 years optimization period.
- Average Trade: The average earnings for each individual trade. Considering an initial capital of $ 10,000, 200 leverage, (Forex) ordersize (bet) 0.10 lots (10,000 volume). The Average Trade must be more then 20.00 $ per Trade
P.S .: When you optimize or backtest put Commission to 50 (x million) and Spread to 2 for major Forex crosses and more for minor crosses. This is used to amortize slippage.
- The parameters attached to the bot have been optimized using ICMarket Broker from 01/01/2012 to 01/07/2022. (with some parameters the Drawdown comes out higher then 10% because it was worth pushing on the Money Management (Position Sizing on gain).
Initial capital of $ 10,000, 200 leverage
- Forex Currencies: ordersize (bet) 0.10 lots (10,000 volume), Commission 50(x million) and Spread to 2.
- BitCoin/USD: ordersize (bet) 0.30 lots, Commission 50(x million) and Spread to 167.
Attention: before Optimization/Backtesting always check the asset average spread
To avoid "Over-Fitting":
- Optimizations and Backtests must be performed for at least 8/9 or more years for reliable results. The optimization done on short periods is not absolutely reliable. Professional traders optimize and backtest their automatic systems using very long periods (10/15/20 years) of data feeds with paid Data Feeds providers. All Brokers who use cTrader platform for Forex give a free set of Data Feeds of about 9/10 years and for CFDs 5/6 years (in this case you would need a paid data feeds provider to optimize at least 8/9 years).
- To test if the parameters obtained are robust, do backtests by varying them slightly (do not change "Reverse/Breakout" selection). If you get positive results, even if qualitatively lower than the optimized ones, this means that the parameter set is robust and not "Overfitted".
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Brokers using cTrader platform can be found at the following link:
From these brokers you can download cTrader platform for FREE and operate in DEMO and then in Live.
Contacts write to: email@example.com
Copyright © 2020 by Active.cTrader.Bot, IT
-------- RISK DISCLAIMER ----- PAST PERFORMANCES ARE NOT A GUARANTEE OF FUTURE RESULTS ----------Forex & CFD trading involves substantial risk of loss and is not suitable for every investor. The impact of seasonal and geopolitical events is already factored into market prices. The highly leveraged nature of Forex & CFD trading means that small market movements will have a great impact on your trading account and this can work against you, leading to large losses or can work for you, leading to large gains. You are responsible for all the risks and financial resources you use and for the chosen trading system. You should not engage in trading unless you fully understand the nature of the transactions you are entering into and the extent of your exposure to loss. If you do not fully understand these risks you must seek independent advice from your financial advisor. All trading strategies are used at your own risk. Active.cTrader.Bot is not responsible for any losses incurred as a result of using any of our trading strategies. Loss-limiting strategies such as stop loss orders may not be effective because market conditions or technological issues may make it impossible to execute such orders.