This cTrader cBot uses a comprehensive Smart-Grid Strategy is based on Multi-Time-Frame trending indicators with 25 combinations together with Advanced Risk Management. It uses a customized version of the popular DiNapoli Stochastic RSI and Hull Moving Average HMA indicators.
This is a trend strategy with a lot of risk management built in, it works on 5 different time-frames using two very popular trend indicators; a custom Hull Moving Average and a custom DiNapoli stochastic RSI which has a feature to check the curve of the signal line.
THIS IS A TECHNICAL STRATEGY
This strategy is 100% technical and works best with indices, it will not perform as well with Forex due to large volatility caused by fundmental price fluctuations.
Read more about Technical vs Fundamental trading
WE PROVIDE FREE ORGANIC DEVELOPMENT
An organic strategy is one where we provide you with a pre-built automated strategy and together with feedback from the users we add more features free of charge. We do not just sell you software and walk away, you will benefit from ongoing development improving the system for a better return.
"We water the strategy and watch it grow"
Lifetime License with Free Updates
The license type is perpetual that will allow the customer to use the licensed software indefinitely and receive free updates when they occur.
All updates will reflect what the customers feel would improve the product, so you benefit from the strategy improving over time.
Want to Trade FOREX?
FREE UPGRADE FOR EXISTING CUSTOMERS
Customers who purchased v2.0 of the Switchback cBot for Forex can download this version for free and will continue to get all future versions at no extra cost.
Custom Development Work Available
Why not add new features to this strategy for your own personal use, contact us if you want any custom development work done of this product.
The core of the trading logic uses a smart-grid strategy which will open long positions at intervals when the price reverses, this on its own gives very good results, but suffers from excessive drawdowns. To reduce the drawdowns this robot has multi-timeframe trend indicators.
You can have a combination of up to 5 DiNapoli Stochastic indicators all with different timeframes and 5 HMA indicators also with 5 different timeframes. So in total you can have 25 combinations of indicator's and timeframes.
DINAPOLI STOCHASTIC WITH CURVE CHECK
This version of the DiNapoli Stochastic has a smoother indicator and extra logic to match the curve of the lines to identify possible price reversal that matches a sharp price reversal. This oscillator smoothing method leads to filtering out "noise" in the price movement. It be used in the strategies that are oriented to a standard stochastic. The stronger smoothing can lead to loss of array of signals, so it is recommended to apply any trend indicator for more efficient use of the indicator and its signals filtering.
This involves a very simple, but useful check on the distance between the signal and result lines using the cross-over distance setting, when there is indecision in the price the two lines are very close together, when there is a strong change direction the distance is higher.
Smooth Curve Distance on DiNapoli Stochastic RSI
This is a major parameter to set with the cBot, it makes a huge difference to reduce the drawdown when back-testing, optimal value is 3, but it can be anywhere between 0-10.
HULL MOVING AVERAGE (HMA)
This indicator is an extension to the Hull Moving Average where it shows optional signals for trend:
- Optional Arrows on chart where trend changes
- Optional Text on chart displaying trend direction
- Optional display of HULL line, only display trend description.
- Set how far away the arrow is spaced from the HMA with different time-frames.
- Two public properties for usage with cBots
The strategy also uses a Simple Moving Average (SMA) and Exponential Moving Average (EMA) indicator with configurable time-frames and custom period values.
MARKETS CHANGE: We have found that for a given instrument the markets changes in cycles, so the combinations for the multi-timeframe indicators will need to be adjusted on each cycle.
ADVANCED RISK MANAGEMENT
This strategy has a rich selection of risk management as shown below:
With the integration of a trading hours feature you can select when you wish the robot to trade for you, each instrument may vary, you can avoid periods when the volatility is very high. Switchback offers you the option to set your daily start and end times.
The robot will also notify you via email when a new position opens and when an open position is (x) pips in the red.
ADDITIONAL CLOSING OF POSITIONS
Some advanced logic is available to close positions when the DINapoli Stochastic RSI is oversold or overbought, you can set any timeframe you wish, it does not have to be same as chart.
CLICKALGO NEWS RELEASE MANAGER CBOT
Integration with the News Release Manager cBot will allow SwitchBack Alpha to pause trading and even close positions a configurable (x) minutes before the news release starts and automatically re-starts trading a configurable (x) minutes after the news release. Email notifications will also be sent with full information about the news item.
Automated or Semi-Automated Trading
This strategy is perfect for semi-automated trading, you can go to sleep at night and know your positions are protected.
What Instruments Can I Use?
This strategy works best with indices and shares where there is no commission and lower volatility from news events.
How Many Trades Per Year
The strategy does not create many trades, sometimes there are 500 per year for one instrument and for another only 20, but the Win to lose ratio is very high, in most cases they are 80% + wins. Our advice is to start on a demo account with up-to 20 instruments and then pick the best performers.
Optimizing the Parameters
The markets change in a technical cycle and as this strategy uses multiple time-frames, you will need to keep back-testing and optimising the instruments every month, if you see bad performers try to optimise them if that does not work just remove them from your list.
Example Back-Test Results
France120 @ 5m 1Yr Data
We look for less than 5% drawdown with around 10% Profit. The strategy works best with multiple instruments.
There are no historical results for this strategy on myFxBook, but it has been used and tested over the past year. This is reflected in the low price, use the trial version for 1 month to see the results yourself.
You can download the manual listing all the parameters in the stratgey below.
Download a few example parameter settings for the back-test, these values will help you set-up other instruments.
Download Example cBotSet Files
Click on the symbol below to download.
Recent Back-Test for #Swiss20 shows a 20% profit with 5.2% drawdown
The latest time-frames for this market cycle seem to be:
- 1 Hr
- 4 hrs
- 8 hrs
- 12 hrs
Please adjust the Smooth Curve Check paremeter until you have the results you desire.
Why not watch a video explaining the strategy by scrolling up and clicking on the "Watch a Demo" tab.