The default parameters that are supplied with the trading robot have not been optimized, they have been manually set as an example, you should be able to adjust them to obtain much better results.
How to Recover From Equity Drawdowns
If you want to progressively let the robot manage to close all open positions without opening any new ones in order to recover from equity drawdowns just follow the steps below.
- Stop the robot
- Set the Max Spread parameter to zero.
- Start the robot again
This will allow the robot to continue managing open positions while at the same time it will not open any new positions, but do not forget to set the max spread value back to its original value after or the robot will never open positions.
How To Manage Losing Trades
You have a parameter called Max Trades in Red which will limit your losing trades, but it will also affect your maximum net profit if you set the value to 2, then if there are 2 losing positions and the robot has a signal to open another one, it will prevent this from happening until you only have 1 losing and 1 winning position.
Keep your eye on the positions and if you feel that the market is about to reverse trend then make a judgement call to close them manually.
Drawdown Stop & Isolation Mode
This is also an excellent method to handle trades that opened near the end of a trend cycle and are now trading in the opposite direction of the signals, if you do not manually manage the trades you can use this feature to close them when the equity drawdown value reaches the preset target.
Isolation Mode will prevent accumulated drawdown, if set to yes, your account will only ever be drawn-down by the % that is set for the symbol being traded.
Average True Range Timeframe
The best timeframe for this indicator is 1-minute, as default when you add a new symbol instance the timeframe is 1-hour, you may find that poor or no results will occur with a backtest using a higher timeframe, it is best to experiement.
Using No Stop Loss
If you plan to run the robot with no stop loss then keep an eye on the losing positions, the smart-grid system will only open positions in the direction of the trend so the odds are in your favour that it will continue this way, you can always experiment with the optimal stop loss with optimization.
Closing Trades on Possible Trend Reversal
The multi-timeframe DiNapoli indicator is very good at identifying a trend and it can also be used to identify when a trend has changed, this helps if you have open positions that are against the new trend, a setting in the DiNapoli Filter called Close Positions can be used to close these trades when the trend changes to the opposite direction.
Auto-Stop Max Balance Drawdown
This feature will stop the robot and close all open positions if your original account balance should drop a set %, an example would be that you do not wish to risk more then 5% of your account balance while the robot is running and if this happens then the robot will stop trading and close all your winning and losing trades.
- Account balance starts at £1000.00
- Drawdown Stop set at 5%
- Trading will stop when all open positions open are equal to 5% x 1000 = £50.00
What Is The Max Spread Parameter?
Each symbol has a bid/ask spread which can change with every tick of data coming in, the max spread input parameter will stop the robot opening positions if this spread goes too high, imagine you had a 10 pip stop loss and the spread was 11 pips, as soon as the position opens it will close with a loss.
Max Spread value of 5 = robot will open positions as long as symbol spread is below 5
What Is Bid/Ask Spread?
A bid-ask spread is an amount by which the asking price exceeds the bid price for an asset in the market. The bid-ask spread is essentially the difference between the highest price that a buyer is willing to pay for an asset and the lowest price that a seller is willing to accept to sell it.
News Release Manager Configuration
If you need help with setting up and using the News Release Manager that is included with the Smart-Grid trading system just follow the link below.
How to Backtest Your cBot
If you need help with backtesting the trading robot please refer to the product page where there is a detailed instructional video or you can follow the link below if you have difficulty understanding English.