How do you build a robot for a winning forex strategy like X112
Since 2010, i am programming robot for finance. For any pair of points, soybean, eur/usd or other HKDJPY (Hong Kong Dollars vs Japanese Yen).
I scooped some awards in japan for some good strategies like ThirdBrainFx or Sphynx.
What is the logic for building an expert advisor – the robot – and to be successful as a signal provider?
We will take one robot called “X112“, you can see on myfxbook some of the results in the last 4 months of X112 with some pairs :
The screenshot taken now gives back good result :
For a very low drawdown.
And it’s a REAL 10’000 USD account like myfxbook confirms it.
This account is not available for public “followers” now except with some partners. It’s produced of our institutional offer.
You can check direct statistics of X112 going to our performance page clicking here.
How did we build it ?
First, except for some instruments, we figure out that another strategy we have – ThirdBrainFx – give a better result, after 6 years of live test with real market-, when the position is opened at 4:00 PM CET and when we check the next 04:00 PM the profit done.
Then we decided to build a “fork” of ThirdBrainFx which will open only at 04:00 PM CET – during the hour – and only check for profit on 04:00 PM CET – during this hour –
Then, first, we test an idea coming from the test too. It’s just observation, statistical observation and you can do that only when you have data then first be sure to collect of the data you need to observe the robot you did.
There is no heavy research on it: you just need to collect the data and sort out what is important in it.
6 years with thousands of subscribers with live account give us a key to produce a better robot.
What is a better robot?
ThirdBrainFx is a nice software, with AUD/JPY for example, we made big profits since 2012 BUT the ThirdBrainFx – the software – was not enough sustainable. It means that we were experiencing long drawdown moment on our strategy and then losing money, first, but also direct subscribers then additional money too. It was attacking and attacked the trust that people can put on us.
A better robot is then a robot with lower drawdown and shorter period of drawdown. You can check it every month without fearing to lose all your money.
Georges Soros, the pope of traders, told us that trading is not a matter of gain but a matter of loses. He is right. First, we try to mitigate the loses and keep a good ratio between winning percentage – the number of trades won among the lost ones – , the average winning gain and the average losing gain.
What are the technical indicators used by the robot ?
We don’t re-invent the wheel. We use MACD technical indicators on D1 period and the William Percentage on H1 period.
We add a third condition we will explain later in this article but very important.
What is the MACD ?
It’s the Moving Average Convergence Divergence. You can check what this technical indicator is doing clicking on the sentence before.
It’s the most used technical indicator and it is useful to detect a Trend, then we want to know the trend in D1.
What is the William Percentage ?
This indicator gives us an important information : is-it oversold or overbought in H1 period then. This indicator is based on lowest low or highest high during a period and it’s used to compute entry point and exit point.
The Pending Order setup to confirm the trend and confirm the momentum to open trades
When we have this point we add one pending order computed after some pips of the momentum of the computation. It’s this pending order which will trigger the trade to be sent to the market.
Then X112 behaviour logic is :
1 – Open ONLY on 4:00 PM CET * during this hour and test the close order also in the same hour if the benefit is superior to 10 pips (( Except for 4 instruments where we have other hour of the day )
2 – Detect trend in H1
3- Compute an entry point in D1 following the trend computed on 2-
4 – Add a pending order to confirm the momentum of 3-
* CET : Central European TIme
The performances of X112 can be seen here for 2018 : https://www.thirdbrainfx.com/analyse/2018/x112
If you are interested by our(s) strategie(s) , you can go to our website :
