Most merchants trying to automate buying and selling face the identical drawback: an advisor exhibits glorious outcomes on historic information however drains the deposit on an actual account. The explanation usually lies not in a coding error, however in a elementary method. Common robots attempt to commerce the identical manner across the clock, ignoring the truth that the market lives by its personal biorythms. We determined to desert this concept and created Pink Driving Hood — a instrument that doesn’t battle 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 probably the most difficult intervals 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 periods carry impulses, traits, and excessive volatility. Making an attempt to use a single technique to all these regimes is a compromise that inevitably reduces effectivity.
Think about making an attempt to decide on one outfit for your entire yr. For those who choose a common possibility, you may be too sizzling in summer time and too chilly in winter. Utilizing a single algorithm to commerce at 03:00 AM and at 2:00 PM is like carrying a winter coat in summer time. You’ll both overheat (incur losses on false actions) or freeze (miss worthwhile impulses). That is precisely why common options usually show weak when market regimes change.
Structure: 24 hours — 24 options
We selected a special path. As a substitute of trying to find a “holy grail” that works on a regular basis, we divided the day into 24 segments. The Pink Driving Hood advisor makes use of 24 unbiased buying and selling fashions, every accountable for solely its personal hour. This enables 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 at the moment the likelihood of motion continuation is greater 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 centered on vary buying and selling and filters out noise spikes that will be a sign through the day however a entice at night time.
Such element permits the advisor to determine entry factors extra precisely and decrease the influence of random actions during times of low liquidity. We don’t common parameters however give every hour its personal evaluation instrument.
Who is that this instrument for?
Pink Driving Hood is created not for fast enrichment however for systematic work. It is going to go well with three classes of customers:
- Inexperienced persons. The advisor is absolutely autonomous. You don’t want to deeply perceive technical evaluation or always watch charts. The system makes selections itself based mostly on embedded algorithms.
- Skilled merchants. If you have already got a portfolio of methods, Pink Driving Hood will probably be a wonderful addition for diversification. It covers the area of interest of intraday buying and selling on EURUSD with out the danger of aggressive strategies.
- Stability seekers. For those who worth capital preservation above doubtful prospects of super-profits, the advisor’s structure with out martingale or averaging is created particularly for you.
