TYG's Robotic Workshop

Automation is very popular nowadays. We need automation because of either we are lazy or smart. :sweat_smile: Whatever the reason, I am 100% an engineer, I don’t care with the reason.

I love to use robot for trading. I am very happy to look at how my minions work very hard. They never complain, I just need to monitor my servers, preventing them from physical failure. Sometime there are incidents, the hardware is being attacked, compromised, internet disconnected, power failure and many more. :face_with_head_bandage:

Dedicating my work to my minions, let me have more time to do my research. This is how I manage to improving my skills and knowledge in trading.

To make it more fun, I will documenting all my journey with my minions. It will be my legacy to whoever willing to experience them. :slight_smile:

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What kind of system can be developed? That is the first common question.

To build a good robot we need to verify our methodology. It has to be a qualitative system. The reason of failure comes from the use of discretionary trade.

In the market there are three trading systems available, such as single entry, averaging and hedging. The most popular one is averaging.

Averaging is the easiest one to develop and optimize, but it’s also consider to be an aggressive one. We hardly can find a good single entry system. But of course there is, however, they are not for sold commercially. They are rented with management fee plus commission. So in the end, the profit is low.

As a retail trader, our options are limited. But we can still making a lot of dollars by knowing the how. Using automated system is one of the ways. Don’t be naive by sticking to so called common things. There so many maneuvers available to grab profits in the market.

Project Code: TIP - Exclusive Bot

During my spare time, I’m working on a private fun project. I still don’t know the result, but it can be quiet aggressive when market is in rally. When the bot is aggressive, the slippage is the enemy. :expressionless:

Luckily the project owner has decent target and stop loss, the bot can perform better. Perhaps I need to add some features, letting the bot has a gentle side. :thinking:

Here is the preview

ea-tip

ea-tip-parameters

The Way of Automatic Trading System

Since automated system is rare to discuss, let talk something about this robotic system. :smiley:

Most trader think robotic system is lame. It is system by engineer who has no trading experiences. It’s not wrong, but it’s also not completely true. Trading is a very complicated skill, need more experience and it comes to everybody who willing to learn. So, no limit who can be a successful trader.

Having engineering background, let me approach trading in a systematic ways. I don’t rely on intuition, even I can see ghost. The holistic approach doesn’t meet requirements to be a trader. When we are touching economic, we are dealing with number and data. Be realistic and logical with our life.

Developing automatic trading system, ones can just rely on optimization. We can just adopt a random methodology and do wide range of optimization. Surely we can find a good configuration to run the system. But, even though I may work, this is not a proper way to develop a system. Many automatic system designer doing this way, surprisingly many can generate profit from it. So can we just blindly do this way?

All will be our choice, nothing is absolute right and wrong. We are happy, we just do it. But there is always a proper way to design a system.

To have a good system, the developer have to have a solid understanding about technical analysis. Once we get the key, we need to find a way in formulating the key as a mathematical model.
For example, when you know the price action in an instrument, you know type of signal you are willing to use, find a method to interpret the signal. It can be Moving Average, oscillator, etc. Once we solve the puzzle, a system can be developed right away.

Simple, but the task is not stop here. A good trading system mostly quite sophisticated. It’s now just look signal and open position only. Since market is so dynamic, there are series of analysis will be required. It takes time to develop it, we need a bunch of tools to improve our system. We need to detect market’s phase, volatility, range, indicators and many others. So developing a good system is similar to build something with Lego blocks.

In the past, aroudn 2012, I had project with an investment firm. They had a very big system, partially in MT4. The code’s size was 55MB plus. If you know software engineering, a 55MB code is considered huge. The firm had developed the code for almost 8 years. So we can imagine how an automated system had been utilized since the old time.

I had also conversation with some brokers, as they told around 70% clients used robot trading, every year the figure was getting bigger and bigger. So from here, I can conclude markets nowadays are more dynamically structured which means market has structured movement but it’s aggressively wild. It moves fast, if we can’t follow, we will miss many opportunities. Our mind can’t follow the progress in the market. This is why automatic system becomes handy. :thinking:

The art of Ichimoku Kinko Hyo … Shoryu-Ken!!!

I love Ichimoku, since it remind me my past to be Street Fighter Champion. During a fight I usually used Ryu, just having combination Hadouken and Shoryuken, I would definitely win the fight. Only when I needed to defeat Mr. Bison would use Tatsumaki Senpukyaku a.k.a Tornado Kick. Btw, why do I talking about Street Fighter? :rofl:

Back to Ichimoku, there are many way to use Ichimoku. I will use my EA to test Ichimoku again. The most famous one is Koten. Next time I will shout Koten when I use Ichimoku. It’s sounded cool, just like how Ryu shouts Hadouken, when push a wave of energy to his opponents :grin:

There are 3 famous Koten:

  • Tenkan-sen To Kijun-sen No Koten
  • Kumo To Kakaku No Kosaten
  • Chikou-sen To Kakaku No Koten

(The three are probably broken language. I don’t know Japanese language :sweat_smile: )

Tenkan-sen To Kijun-sen No Koten refers to Tenkan and Kijun crossover.
Kumo To Kakaku No Kosaten refers to the Kumo crossover
Chikou-sen To Kakaku No Koten refers to Chikou crossover.

Screenshot from 2024-10-06 19-16-48

Ichimoku - Tenkan-sen To Kijun-sen No Koten

Hadouken!!!

Screenshot from 2024-10-06 19-20-22

I’m using 1st Ichimoku’s Koten. With Simple EA,

ea-ichimoku

Here is the result of BT with 350 parameters in 2024, EURUSD, H1.

The trading’s stats will be here.

It’s promising. There are many room for improvement. :thinking:

Ichimoku - Kumo To Kakaku No Kosaten

2nd Koten from Ichimoku!

ea-ichimoku

The result is not good, but if filter can be made, it can be good. Parameters 350 in 2024, EURUSD, H1

Here is the trading’s stats.

Ichimoku - Chikou-sen To Kakaku No Koten

3rd Koten of Ichimoku on EURUSD, H1 in year 2024. Parameter 350

ea-ichimoku

Result is promising, by applying other indicator, it will show good result.

Trading stats:

Under xBot optimization:


xBot Optimization Stats:

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