After dedicating countless hours to developing trading algorithms over the years, I’m humbled to share that I have managed to create what seems to be a stable and profitable trading algorithm for the MT4 platform. Through persistent effort and a mountain load of trial and error, I’ve been able to refine my existing algorithms and achieve results that look very promising. Currently, the two algorithms are in testing phase running on many different accounts, including some live accounts provided by a handful of kind brokers. It’s a significant step in my journey as a trader and algorithm developer, and I’m cautiously optimistic about the potential, and I am incredibly happy to see how far Buy and Sell Zones (BASZ) and Asset Strength Reversion (ASR) have come since I started writing them back in 2012.
Never Quit.
The good thing about failing literally thousands of times is that each time you fail, you have the opportunity to learn something new. The learning opportunities have resulted in thousands of bug fixes, updates and new features.
On top of that, I have received a lot of help from some amazing people from within the Pipnotic community, who have invested a lot of time and effort in testing the robots in a wide array of configurations, which has been very valuable.
A very special thanks to Anders, Andrew, Cameron, Elijah, Frederick and Todd for their time, efforts and feedback.
Challenges Ahead.
Looking at the results thus far, we are seeing a very good win-rate in both robots, in the special configurations we have found. As we all know, with a high win-rate typically comes a slightly poorer risk to reward ratio (RR ratio). This is something that we are mindful of and currently exploring. With a risk to reward ratio of 4 to 1 (risking 4 dollars for the opportunity to take 1), our accuracy goes to just over 90%. Via an analysis of historically executed trades, it appears possible to reduce this to a more reasonable configuration, which is what we are currently working on. It such cases, it is essential that volatility is considered, as this play a major role.
Mitigating Risk.
We experienced a day last week where one of the robots performed poorly, as the loss limit feature was disabled (purposely done for testing). This was a very important experience for our beta test, as it enabled us to observe how quickly we could recover, which happened in very short order. When the two robots run together, BASZ in expansion-/release-mode at the London open for a couple of hours, and ASR around the clock (24/5), things look remarkable. The two robots work well together, as they are trading two opposing ends of volatility, BASZ as the markets expand and ASR as the markets contract again.
Where Now?
We still have more testing to do, as we need more data, but we have been able to observe the robots when the state of liquidity is both good and when it is bad. We watched ASR crush it during economic data releases, which was encouraging, as we don’t want to have to worry about having to intervene manually when news hits the streets. Both robots are constantly looking for reasons not to trade, and we’ve seen them shut down nicely when they find one. This is magic, as trading is also about knowing when not to trade.
So this is where we are at present. I have started doing video blogs sharing some of my thoughts, ideas and frustrations. If you want to follow them, please visit my Instagram profile (https://www.instagram.com/pip.notic/) for updates.
If you have any questions or comments, as always, I would be thrilled to hear from you. Simply shoot me an email via the contact form on our website (https://pipnotic.com/contact/) and I will get back to you, generally, very quickly.
With respect and gratitude,
Sarid Harper