Most merchants trying to automate buying and selling face the identical drawback: an advisor exhibits wonderful outcomes on historic information however drains the deposit on an actual account. The rationale usually lies not in a coding error, however in a elementary strategy. Common robots attempt to commerce the identical approach across the clock, ignoring the truth that the market lives by its personal biorythms. We determined to desert this concept and created Crimson Using Hood — a software that doesn’t combat the market however adapts to its pure rhythm. On the core of the system lies a singular structure of 24 unbiased fashions, every of which underwent stress testing throughout essentially the most difficult durations of the final decade, together with the 2020 pandemic and the volatility following Brexit.
The issue of common methods
The monetary market is heterogeneous. What works within the morning can develop into unprofitable within the night. The Asian session is historically characterised by low volumes and sideways value motion, whereas the European and American classes deliver impulses, developments, and excessive volatility. Making an attempt to use a single technique to all these regimes is a compromise that inevitably reduces effectivity.
Think about attempting to decide on one outfit for the complete 12 months. In the event you decide a common choice, you can be too sizzling in summer season and too chilly in winter. Utilizing a single algorithm to commerce at 03:00 AM and at 2:00 PM is like sporting a winter coat in summer season. You’ll both overheat (incur losses on false actions) or freeze (miss worthwhile impulses). That is precisely why common options usually show susceptible when market regimes change.
Structure: 24 hours — 24 options
We selected a special path. As a substitute of looking for a “holy grail” that works on a regular basis, we divided the day into 24 segments. The Crimson Using Hood advisor makes use of 24 unbiased buying and selling fashions, every liable for solely its personal hour. This permits the algorithm to account for the distinctive properties of every time interval.
For instance, the mannequin lively at 14:00 GMT is tuned to work with pattern actions of the European session. It is aware of that presently the chance of motion continuation is increased and requires clear entry confirmations. On the similar time, the algorithm working at 03:00 accounts for the calmness of the Asian session. It’s targeted on vary buying and selling and filters out noise spikes that will be a sign through the day however a lure at night time.
Such element permits the advisor to establish entry factors extra precisely and reduce the impression of random actions during times of low liquidity. We don’t common parameters however give every hour its personal evaluation software.
Who is that this software for?
Crimson Using Hood is created not for immediate enrichment however for systematic work. It should swimsuit three classes of customers:
- Novices. The advisor is totally autonomous. You don’t want to deeply perceive technical evaluation or continually watch charts. The system makes choices itself primarily based on embedded algorithms.
- Skilled merchants. If you have already got a portfolio of methods, Crimson Using Hood can be a wonderful addition for diversification. It covers the area of interest of intraday buying and selling on EURUSD with out the chance of aggressive strategies.
- Stability seekers. In the event you worth capital preservation above doubtful prospects of super-profits, the advisor’s structure with out martingale or averaging is created particularly for you.