So Strobot placed a USDCAD short yesterday that is 59 pips against us at the moment but appears to be pulling downwards.
The trade makes good sense let’s look at the daily chart.
As you can see the pair is very high – Fib wise near the top, it’s been in a bearish wedge for the last 5 or so trading days. Our short entry was actually taken early by a pin bouncing down and then back up again – not to worry 9 times out of 10 these pin bars indicate the market is going to move in that direction.
The hourly chart we can see STROBOT’s target (the bottom white dotted line), we can also see the market showing signs of moving bearish again – the market LOOKS like it wants to come down having rejected 1.26190 and then 1.26075.
I wait to see what happens but I hope STROBOT will be yet again proved right.
So I test strobot on a few brokers. There are some noticeable differences in the trades taken between some and others. Here are some (but not all) reasons.
– Spikes in data – I noticed CeaserTrade tends to have the odd spike that will nip down and take an entry order, then go straight back to where it was before – these spikes do not appear on other brokers.
– Spread – STRobot only enters trades where the spread < 7 pips, thus, as spread is varying all the time a broker who ramps up spread to 7 pips or above even just for a moment to stop out traders (or for whatever reason they do it), can mean that STRobot may not take trades on a particular broker.
So now on to something far more interesting. STRobot’s Fib based trailing stop. I’ve always really wanted to produce a trailing stop that would move closer to price as the price got closer to the target, I’ve FINALLY achieved this. Using a FIB based calculation (yup, my secret), STRobot calculates what would be a good trailing stop, he then follows the price towards the target but gets gently closer as the price gets closer, finally getting REALLY close when the price is within say 20 pips of the target. This means that on occasions where the price bounces before the target we just stop out in profit.
This graphic is an image that shows you a model of the trailing stop, you can see as price moves up the trailing stop moves closer – not by much in this instance, so for a bigger target the robot gives the trade more space and for a smaller target less.
One of the STRobot users was asking about news trading so I’ve finally gotten down to writing it. News in the forex market is normally preceded by a period of flatness. Especially things like NFP and FOMC.
My advice on news trading is simple and the version of STROBOT 50.8 deals with this.
I will point out I don’t actually do any trading myself – although I know a lot about it my robot does it for me – but I taught him everything he knows.
Here’s what STRobot would do:-
– NO trades in the flat market.
– Place ENTRY ORDERS only (STOP orders) when there is a correct technical setup
– STRobot will phase the news – so he trades AFTER the result – this can be a break hook and go structure or something else. News creates unpredictability in the markets, we are not here to gamble.
– On http://www.forexnewsbot.com you can often find statistics and other information about what the market expects from a news result but be careful – big moves and big losses (remember the CHF move).
As I said I don’t actually trade myself I taught STRobot to do it!
More about STRobot
Well this new version is quite a landmark with STRobot winning 70% of trades on backtests. I’m currently testing with different stops and go safe values to really get him optimised.
– STRobot has been taught to recognise a flat market and stay out
– You will see him set up entry orders some of which do not actually take
– His Automatic Trailing stop will trail the market at the level of your stop loss until within 20 pips of target then switch to a 30 pip trailing stop
– He will not trade for less than 100 pips target
I have published a couple of backtests (will do more later) click here to see them.
In order to filter out some of our trades I’ve been teaching STRobot the Forex trading Robot how to use FIB levels. He now trades certain fib level areas using his existing algorithms for entry.
So STRobot will trade between the 61.8%, 33.2% and 23.6% fib levels. He trades only from those lines – where the stop is below the level (for a long) and the entry is above the level or for a short where the stop is above the level and the entry below the level.
The TP targets are the next level -10 pips.
Using the current strength system STRobot is able to find the entries and trade. He has a new trailing stop system as well that is able to hold back when the market moves and move closer when the market is losing strength.
I am going to produce a new video shortly with some of the extra features shortly.
So STRobot did brilliantly yesterday with some wonderful GBP trades.
GPBJPY and GPBUSD were both bullish trades.
This new version of STRobot shows the trades on the chart.
These would have been bigger trades but at the moment we have gone into “FOMC sit and do nothing” mode when the markets just hang around. It’s a dangerous time to trade this brings me to the problem of stops.
This kind of hanging around in the market is really hard to trade – I recommend the following options:-
– Go flat and don’t trade till 2 hours after FOMC
– Drop your lot size down to something small to reflect the risk. If you get a zillion pips with a small lot size great, if you lose 40 pips fine.
– Keep your stops small – STRobot has now gone down to 40 pips.
Now we wait for 7pm when all hell breaks loose. Really the pain starts a day before in fact from last night at about 10pm GMT. It will be over soon thankfully.
Today we get to here if the ECB will introduce Quantitive easing to stop deflation (negative interest rates). STROBOT sold EURGBP and EURUSD overnight.
If the ECB do go with QE we can expect the market to drop possibly as fast as when the CHF pairs went. We are set up ready in a good entry on the pairs with just a 30 pip stop. But STROBOT will go safe at 30 pips. Small risk, high rewards!.
I have made a brand new STROBOT Forex trading video you may enjoy!
STROBOT has been holding out of trades apart from scalping today so far – so no big wins YET, all this will change in 20 minutes as he starts setting up. The 4 hour markets are showing flat.
One of my traders had is STRobot Charts laid out like this. Which I’ve kind of adopted, the daily chart on the left with the Strength Meter and the STROBOT chart in the middle with the Hourly Heiken Ashi on the right hand side! Very nice. I’m going to see if it’s possible to get it to set both charts if you click on the currency on the left hand side of the STROBOT chart. In this version STROBOT shows an hour glass when he is busy which is useful.
One customer did ask me if STROBOT would take 40 trades at once.
I’ve never seen him do this, the most in fact I’ve ever seen was around 20, that’s why we keep our lot sizes small, it’s much better to take 20 small trades rather than 5 big ones. STRobot tends to focus on the same currencies for instance today he has been scalping NZDJPY and NZDUSD, which is what he does in flat markets.
Our NZDUSD long on this account has been very very slow but is now breaking through 91.483 and I hope we might seen at least 50 to 100 pips out of it, which would be nice to add to the 15 pips STROBOT has scalped out.
Another potential customer did ask if he could test STRobot on a demo account, I don’t do this because:-
Demo accounts are not the same as real live accounts.
I provide a lot of support during the night to traders, personal support when I can, plus the user group is full of traders who also discuss and work with us.
The software is connected to external servers (which is how we can do the trading in the first place, your MT4 is not capable of trading with this robot on it’s own). I can’t give server space really to people who are not paying for the service.
I don’t think it’s fair for people to get for free what others are paying for.
Have a great day I think we’ll be getting some trades in about 9 minutes so you can view the live trades on the STROBOT site. Updated every 5 minutes or so.
Wow what a 24 hours it has been. Some of us walked away from the Swiss frank with a 1000 pip trade profit. But what a ride!
Others did not fare so well. The worst being the list of brokers who have gone into liquidation. For instance Alpari, who although I’ve never used them I have trusted them for a long time.
Today we took the decision as a group to disable trading of the swiss frank. We have a facility in STRobot for opting out of trading currencies and the Swiss frank is too volatile at present moving 100 pip swings fast!.
We have also decided to increase our stops to 120 pips from 80, having gone through our losing trades from last night ALL of them turned round and came back! So we wasted 80 pips about 3 times that we could have held.
So now it’s a waiting game with around 14 trades on at the moment STRobot has placed, with USD news @ 13:30 we could see some nice pips. Just have to wait, I would like to see the last remaining CHF trades I have on go into profit but at the moment the world is trying to work out just how much the CHF is worth! This morning we stopped out 2 120 pip CHF trades (painful). But saying that for those of us who did pull 1000 pips yesterday its swings and roundabouts.
EURGBP is doing nicely but holding for the news so let’s see what happens. Due to CHF trades I have a live account with a nasty 80 pip going the other way CHF trade and the demo account is not doing much better. The USG account is fine though.
Still HUGELY up on the week. I’m checking out a couple of traders who did not end up in profit. I do suggest going through your statements just to check everything is right. Some brokers will refund trades closed because of gapping or whipsaws especially if you can prove that other brokers didn’t have the same thing.