Simultaneous Trading Over Time (New Robot)

Simultaneous Trading Over Time (New Robot)

Aug. 23, 2023

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This week we’re looking at a new robot that I’ll be unveiling at the Algo Trading Conference in Melbourne in December.

As we talked about in the last Newsletter, it uses a methodology I’ve never tried before.

This Trade View robot is allowed to take a trade in the opposite direction while it’s still in an open trade.

I’ve built robots that stop-and-reverse and I’ve built robots that add to positions in the same direction.

I’ve never built one that goes the other way while still in a trade.

And as you know, this style has worked well in chaotic 2023 on the 30M GBPJPY:

But we know this year has been weird. Many strategies that work this year may not work in any other year.

So, did this new strategy hold up?

Did taking simultaneous trades, not hedged trades, work over many years and many different markets?

Here’s the Report on the Trade View 2.4 robot via Portfolio Architect from 2007-2023 (trading 1 lot each time on the GBPJPY 30-minute chart):

What do we see?

For one, we see a nice amount of hypothetical profit. So that’s good.

We also see a pretty big drawdown if we traded it on a hypothetical $20k account. Again, that’s the drawdown amount that Warren Buffett says is mandatory for every trader, but most people aren’t Warren Buffett. And we could trade it on a bigger account.

We also see a low win percentage, but that’s a little deceiving because it’s going for big wins and has a pretty tight stop. Low win rates are to be expected with systems like this.

The interesting part is when we look at Annual Returns:

There are some monstrous winning years (a mandate for any trend following system), and the losing years are small.

That’s an excellent combination.

So, I think it’s fair to say that simultaneous trading does hold up over time.

But is there anything we can do to lessen those losing years?

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.