New release "Breakout_Reverse 5 Strategies_11.21"
In the new release we have improved "Consecutive Losses Protection" for Long & / or Short positions, as a prevention in case of high volatility.
This protection is particularly suitable for Reverse / Mean Reversion strategies where a high volatility can upset the Mean Reversion propensity typical of the Forex currency markets.
It can also be applied to Breakout & Trend Following strategies to reduce DrawDown (where applicable).
To facilitate the cBot optimization process we are attaching 5 cBots, 1 for each strategy.
In this way you can proceed in the optimization for each single strategy and after transcribing the parameters directly on the main cBot.
You can also use only one strategy, each cBot can be used to trade directly. We recommend using (where possible) more strategies on the main cBot, as this way you will be much more hedged.
With the Main cBot you can also download:
- Breakout - cbot single strategy
- Reverse - cbot single strategy
- Reverse On Level - cbot single strategy
- Trend Breakout - cbot single strategy
- Trend Reverse - cbot single strategy
Multi TimeFrame program uses 5 different strategies based on supports and resistances by calculating the maximum and minimum prices on a certain number of bars on 5 different Timeframes.
The 5 strategies work independently and in each strategy the Buy & Sell parameters are different and work autonomously.
In the event that all the strategies are open with the Buy & Sell operating, there may be a maximum of 10 open positions.
However, the case in which all strategies are used with activated Buy & Sell is rare.
STRATEGIES DO NOT USE ANY GRID SYSTEM OR MARTINGALA
In the markets of the major Forex currencies crosses, Metals, Oil, Indices and Crypto Currencies some of them adapt better on Breakout strategies and others on Reverse strategies and you can understand it by doing optimization.
For example, the major Forex currencies cross adapt better on Reverse and mean reverting strategies. American indices such as S&P500, DAX in Europe and Crypto Currencies fit better on Breakout strategies.
Each strategy must be optimized independently of the others. Buy & Sell as well in each strategy must be optimized separately.
However in each strategy there are at most 3 main parameters to be optimized.
The optimization process, must be done for each strategy excluding the others and separately on a single strategy first Buy and then Sell), on a normal computer, it can take longer (consider that you are working on 5 TimeFrame) but in the end it is worth as you will get very satisfying results and succeeding also to understand where the symbol moves better on Buy (long) or Sell (short) in Breakout or in Reverse. When the optimization of a strategy ends, set aside the best parameters. When has been done for all strategies, manually enter the parameters of each strategy in the bot.
The Trading System has been designed to work at the best on all types of Forex cross currencies, Metals, Oil, Indices, futures and Crypto Currencies.
Pay attention to the Trade volume for each instrument as it changes from Forex to Indices, Metals, Oil, Futures and Crypto Currencies. Some Brokers for CFD 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 value, the Bot will automatically use the minimum tradable volume.
Warning: when trading CFDs (Indices, Futures, Crypto Currencies, Metals) 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.
- Reverse On Livel
- Trend Breakout
- Trend Reverse
Exit Strategies: (All positions are protected with StopLoss)
- Strategy logic exit
- Trail & Strategy
- StopLoss & Breakeven / TakeProfit
- Trend Follow (TakeProfit is floating and is used only as security in the case where the bot is no longer controllable due to connection failure or other causes. With the Bot active the position is closed only by the StopLoss which Trails)
- Solo StopLoss & Take Profit
- Solo Trailing (TakeProfit is floating and is used only as security in the case where the bot is no longer controllable due to connection failure or other causes. With the Bot active the position is closed only by the StopLoss which Trails)
In each strategy:
- 5 different Timeframes
- Different Parametrs for Long & Short, they work autonomously.
- StopLoss & TakeProfit are automatically assigned (Depending on volatility and volume traded in the book)
- Trailing Stop is automatically assigned.
- 1 single entry strategy
- 6 different exit strategies. Optimization will indicate the best exit strategy.
- Option to Cut DrawDown (when it's appropriate to use)
- Money Management (Position Sizing) on winning and loosing trade.
- Consecutive Losses Protection for BUY / SELL (Separately)
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 8/9 years period to have reliable results. In this period consider at minimum to have more than 250 trades. Total trades must be obtained by adding the trades of all the strategies used. Strategies can obtain a minimum of 50 + trades in one way (Buy or Sell)
- Average Trade: The average earnings for each individual trade. Considering an initial capital of $ 10,000, 200 leverage, ordersize (bet) 0.10 lots (10,000 volume). The Average Trade must be more then 20.00 $ per Trade
Already set for Optimization Criteria (GetFitness), (you can set it to "Custom") with the following Criteria:
ProfitFactor/ minimize MaxEquityDrawDownPercentage
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 Pepperstone Broker from 08/02/2011 to 15/03/2020 (with some parameters the Drawdown comes out higher then 15% because it was worth pushing on the Money Management).
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 "Livel TF" which is the Timeframe). If you get positive results, even if qualitatively lower than the optimized ones, this means that the parameter set is robust and not "Overfitted".
- HighLow Reverse cBot
- BBands Trend Follower cBot
- BIAS Daily Time cBot
- BIAS Weekly Time cBot
- HL Rev Break Auto cBot
- HL TF cBot
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.