About
Monaco began life trading only Oil on a grid system using moving averages to determine the direction of the trade and I have gradually refined this strategy. This account now also trades the CAC40 French Stock Index too. It can trade one forex pair too based on my pre-defined entry criteria however it can only trade two of those markets at the same time. Interestingly it may trade any of these markets in both directions at the same time, each trading on a grid system. This strategy is margin neutral, in other words if the you are long and short the same market at the same time you don’t require additional margin. It can also leave you hedged however this will only ever be temporary because the winning direction will continually close trades and take profits.
Strategy
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Trades any two of the following markets at the same time CAC40 (French Stock Index), West Texas Intermediate Oil, One Interchangeable Forex Pair.
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It is completely automated and run by a robot off an hourly chart 24 hours per day under human supervision.
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Monaco trades potentially in both directions at the same time.
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Its basic design is to use MA to determine market conditions and bracket the current price with a STOP and LIMIT order to profit in that direction. If the direction is long, BUYS are used to take profits. If the trend reverses, BUY LIMITS are hit and profits taken on the reversal. If the direction is short, SELLS are used to take profits. If the trend reverses, SELL LIMITS are hit and profits taken on the reversal. The robot starts placing trades by bracketing the current price with STOP/LIMIT trades in a proprietary fashion.
The interesting thing about this grid system is that it may have both buys and sells running simultaneously. As the profit targets are hit the profitable direction is closed and the unprofitable direction continues to operate the grid opening up to 15 positions until it hit’s it’s own target. This means that occasionally the trades appear hedged however because the profitable side will close positions the hedging is only temporary as the balance is increased giving the unprofitable trades more breathing room.
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It is a “breathing grid” based on that pair’s volatility and thus it evolves as the market conditions evolve. The ATR indicator is based on a 21 period cycle of that pair.
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Therefore the safety features of this account mean the lot size at every level will be equal to the base lot, i.e it will not increase at each additional level. eg,0.01,0.01,0.01,0.01 etc. The Forex pairs will trade in the same non-linear fashion for safety.
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Additionally it will begin to hedge trades on a 20% DD which the winning direction continues to perform
Trading in potentially both directions simultaneously has caused a few raised eyebrows but it’s working.
Gary