So STROBOT has set up USDCAD and has a trade in currently at 80 pips profit, he has set up another trade at entry 1.23375 for a long.
So he is building trades on existing profits.
The original entry order set at A and the new entry order at B so as we get the break out of the second area of congestion we are able to build up the trade for the new targets.
111pips profit target in the original trade.
You may have noticed I’ve not posted for about a month that’s because I’ve been backtesting and working on a new version of STRobot. It’s been a huge job.
STRobot still uses fib levels for targets. But has a lot more clever things:-
– ability to add to trades to a trade so if he sees opportunities for further trades he will place them once the trade is safe (stop inside entry).
– Better entries
– Trailing stop now trails even when the trade is not in profit to reduce risk
– Entries are based on 4 hour timeframe and 15 minutes at the same time- updated all the indicators.
So let’s look at a live trade I have on.
You can see STROBOT now has a strength meter built into the trading output.
So lets have a look at a trade in detail.
STRobot spotted CADJPY for an entry after it had bounced off of the 61.8% fib level. He waited for a break down and took the trade at the point shown, this is the hourly chart and you can see a falling trend. You’ll see how STROBOT identifies 4 hour trends so now he’s looking for a run down to the next fib level @ 38.2% He’ll probably add a few trades as this pair is not moving hugely as we go down.
Here’s the 15 min.
I don’t know how far we will get because the 200 pip target is quite a long way away but we shall see.
Anyway there we go – here comes Monday
So STRobot v70.3/4 has been trading really really well. I have some test accounts Live ones that I leave alone and I’ve just put a $50USD one on, STRobot has traded it up to $118 in 24 hours using 0.02 lot size. Click Here to see the results! (300 pips profit approximately)
So I thought I’d go through 3 trades STRobot has taken and you can see the artificial intelligence working.
STRobot detects a fast break in price, he then will place a trade straight away – ideal for news.
2. The HEDGE – STRobot had a long trade on but the market changed direction so he set up a hedge short to cover the losses of the long – one of these trades will stop out, the other will take profit covering the cost of the first trade, and ofcourse making a small profit.
2. The Slow move – STROBOT sees a potential break out of a range so places an entry order above the level it needs to break. Then as the market moves up he will let the trade happen. In this case the price has broken the level and we are waiting for the profits!
STRobot has a trailing stop system that tries to avoid getting close to soon, every fast move or slow move is followed by a pull back you will lose at trading if you let your stops run and close your profits early. You should calculate your targets and have a big trailing stop to trail up behind it, if you let it stop out in profit at your trailing stop level. STRobot’s trailing stop works more using fib levels and strength, so as the market gets closer to our target so does our trailing stop.
STRobot just took 3 NZD trades at once, one has already stopped out in profit. Looks like NZD did a sudden rally, the latest version of STROBOT (v70.3) can detect a sudden move in a pair and take a trade instantly, normally STRobot places entry order in advance of a break, but if there is a sudden move he is able to get into it very very quickly.
As you can see we are half way to target already, I expect a pull back first then a gradual run up to target.
Last nights boring trade just stopped out in profit.
So I’ll wait to see how these trades play out!
STRobot has taken an interesting short on GBPJPY it looks like a nice bounce off of the 38.2% fib level targeting the 61.8%. We have Carney speaking later do we have a head and shoulders reversal in progress?
I have also marked the Buy/SELL STRobot signals on this chart so you can see what it does. STRobot ofcourse trades automatically using entry orders. So the fake ones tend to be taken out because they never happen.
As you can see STRobot has a number of good entries on this chart – not forgetting he trades 40 currency pairs.
Target reached. Closed @ 62.50 pips profit!
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.
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!
Video Demonstration of the STROBOT Trading Robot