The year 2021 has shown me that there is a lot of progress to be made in my approach, especially in phases of high volatility markets and 8 months of the weekly range.
This is one of my Bot for 2022 for the DAX 40 index – The K-BOT v2.1-SecureH1
My approach this year is to bring more security in taking positions with a double trend check and a stop at 1.1%. The BE and the stop win as well as the partial take are also there. You can follow up on the progression of the bot here: https://k-trading.tech/index.php/k-bot-v2-1-sh1-2022/
Here is the backtest of the robot on 200k units with a spread of 1.4 and at 0.8€/pt with a soft reinvestment of the gains.
Starting in my live account (0.8€ /pt)
—> Note to read before going further <—
I have received a few messages from clients whose comments have alerted me to 3 topics that come up in particular:
- Money management
- Under the pretext of seeing a backtest in line with the market considered, some customers increase the leverage in the hope of winning quickly. If at the time of your subscription you fall into a market context not already seen by the robot during its design, you will wipe out your capital and you will not be there during the profitable market phases of the year.
- Lack of knowledge of the financial markets
- In talking to my clients, I have seen different classes of people, professional traders, amateurs, and neophytes. It is easy to talk to traders who understand the cycles, phases, and trends of the markets for example. Others, have very short-term reasoning and do not understand why they do not win all the time.
- Why do robots win? Why do robots lose? Most people don’t ask this question except to say that it is not normal for robots to lose and therefore cry scam!
- The trading robot class
- When you make a strategy you have choices, the trend or the market range. I chose the trend, if the market is in range, then my robots will work less well and vice versa.
- I have chosen a discretionary strategy which means that the robot will enter and exit positions according to strict rules that cannot be changed over time. If for 2 years a stop of 150 points allowed trade in a secure way and war broke out increasing the volatility of the markets. A person who does not understand that SLs are going to be hit more often than before and that it is, therefore, necessary to review his money management, is doomed to failure in his investments.
- I remind you that a robot as I conceive it repeats a discretionary strategy and that statistically, this strategy is winning in time.
- I have chosen a stop of 1.1% max for my robots. Some may design robots based on long only because an index is only designed to go up and enlarge the SL to allow for range phases when in position. However, when SL is hit, it can have a big impact on capital. This is not my choice because some clients abuse the leverage and put themselves at risk.
In conclusion, if you have not understood that :
- – Investing in the stock market involves proven risks
- – You are the only one responsible for your actions
- – I am not selling you a dream
- – You take a trading robot in any case and you understand the associated risks
- – A robot cannot predict the future of the financial markets
- – A robot is not designed to make you win every day in the markets
- – A robot only reproduces a discretionary pattern to enter or exit a position
- – I use my robots and like you, I win and lose. I’ve been keeping track every week for 2 years on my website
- – Without strict money management you can’t take advantage of profitable trends
- – To have a judgment on the strategy of a robot on 1 month of use during an episodic period like a war or other
I prefer that you go your way and not take any of my robots, please. There are more talented people than me who can help you in your adventure of investing in the marketplace.
r0d0lphe (verified owner) –
After 1 month of use the results are very bad. the win/loss ratio is 0.34. Every week is losing.
The back test is not consistent with the live results. The stop loose seem to have been modified lately to erase losses. it really looks like an overoptimized bot.
I will change my opinion if things get better but when I look at the visible part of the code, I am very pessimistic that it will happen.
The robot was not working on my limited risk CFD accountLack of assistance. I had to modify the code myself. I gave the solution to K-trading who implemented it in an update for all without even a thank you.
r.burger (verified owner) –
I recommend this strategy. I have back tested the strategy with the same very good results as shown by the creator. Have increased the lot-size to 3 and in 1 week the costs of the EA are covered. I like that the EA enters in the direction of the trend in de 3′ TF considering that the 1H TF is also favorable. Most of the time extremely late when looked at in the 3′ but it just works! Hit rate is high (because high stoploss 1,1%) I use this fact to also enter manually with I can get a better entry price in intervals between EA entry and say 0,5% negative territory looking at my own indicators.