An Accidental Way to Make Profit

An Accidental Way to Make Profit

Aug. 21, 2023

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As I’ve hinted, I’ve been invited to be a featured speaker at the Trade View Algo Trading Conference held in December in Melbourne, Australia.

For that conference, I wanted to unveil a new robot, or at least reveal a different take on a robot that I’ve developed previously.

The cool thing about Trade View is that they build robots from scratch on their incredible site with mix-and-match, plain-English segments of code. Just about anything is possible.

It’s mind-blowing.

And since I love breakout strategies and trend following in general, that was the first thing I wanted to build.

So we did.

And I’ve been watching it now for a while.

Here’s the interesting part. This robot takes an “extra” trade.

Instead of taking one trade and following it from start to finish, it takes another trade in an opposite direction–if there’s a new setup.

This isn’t a “hedge” position.

(I don’t like hedges. Why would I take a trade that guarantees I can’t get full profit? It seems so counter-productive.)

This is a new position created by the right environment.

Initially, I didn’t set out to build a robot that goes in opposite directions simultaneously.

It just turned out that way.

And I’d never done that before.

So, how has it done in the almost-certainly-manipulated Forex market of 2023?

Quite well, actually.

Here’s the Performance Report of the 30-minute “2.4” Trade View Breakout robot on the GBPJPY trading 1 lot each time in 2023:

Here’s the 2023 hypothetical Equity Curve:

Slight hiccup but mostly good. And here’s an example of the simultaneous trading:

As you can see on the left, there is a losing Short trade finishing up (in red) while a winning Long trade starts (in blue). Then, in the middle of a couple of winning Long trades (blue), there are a couple of losing Short trades (red) along the way.

What’s the potential advantage? A losing trade can be mitigated by a new, profitable trade getting started in the other direction. On paper, it seems like that would be very beneficial in a ridiculously whipsawing market like we’ve seen this year.

The disadvantages? You take losing trades in the middle of winning trades, which can be annoying.

As the Report shows, this type of trading has been excellent in ’23.

But does it work over time in different markets?

We’ll look at that in the next Newsletter.

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Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.