TYG's Workshop: Robotic System

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

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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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MA Pullback Strategy - EURUSD M5.

Testing Period: January - August 2024.
When you know how to optimize a strategy, trading is very easy. You can use any indicator and turn it profitable. It’s not about looking for the best. It’s about which one do you like better.

simpleEA

simpleEA-Parameters

Here is the raw result for MA Pullback.

When I do optimize the algoritm, the result is:

By changing the money management, the result will be different. Next I will use others indicators to show that every single indicator is profitable if we know how to use it.

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Greetings colleague, perhaps you should not give a choice for trading on the indicator by your user, it is very difficult for a beginner, try to program better results and do automatic adjustment for a specific tool. Everyone loves one money\button!

Hi @VladislavK, fortunately I have no user. :slightly_smiling_face: The ea is used for research, to find the best setup for an instrument. When a setup is found, user needs to set volume only.

here, I just want to share that every indicator can be profitable, we only need to design a good money management to use it.

Btw, thanks for visiting. I appreciate your advice. :pray: :slightly_smiling_face:

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https://forums.babypips.com/t/trading-robot-sky-grid-platform-mt4-for-20-currency-instruments/1259167
I think take a look at my system, it implements money management, and much more, maybe your project will be useful as an idea for development, money management is a simple task, there are complex things in other aspects of robot development

I wonder…Isn’t that overfitting or overoptimizing, when the indicator doesn’t work in its basic setup? :thinking:

Hi @VladislavK, thanks for your input. :slight_smile:

How long have you been running your system in live account? We have different approach here. I have my own grid system, which have been running since 2011. I know the limitation of a grid system. I experienced the up and down in 2012, 2015, 2018, 2022.

The list of instruments you provide, some of them are not good to run a grid system. They will give you a very huge draw down. As a grid system trader, I also wont use multiple pair in an account, I will split them base on their behavior.

More, when you are talking about grid system, most of them a martingale system. There are many type of martingale system, from roulette, dynamic, stack and paired.
When we are talking grid system, we also talking about grid parameters.

As in your trading result, it’s too smooth, none of the above match with your pattern. :slight_smile:

It will be suspected as a fake result. As an EA developer, you should know a technique so called history reading, don’t you? I don’t accuse you to be one, I’m sure you are the real one, but a real grid system won’t be this smooth. Unless you are using AI based system.

The AI based system has also their problem. I have used AI to create a system, I can generate the data to make the robot run very smooth. This condition is so called over fit.
Over fit means the system got a very perfect formulation / data. It’s too perfect that it can’t even be used.

You can provide me your trading stats, just like how I provide the stat here. :slightly_smiling_face: From here we can find how to utilize your EA properly. :slightly_smiling_face:

Hi @Ravenash , when you are using AI, it’s over fitting. AI is stupid actually. We give data, the system try to summarize to find a formula that can connect the dot. When the data is inadequate, it will be fall under/over fit state.

In EA, we can do optimization. We can run optimization to an EA, as long as you can provide all parameters. You can run thousands of combinations to find the best configuration. But, this is a very very wrong way. You will force your system to match the market. It will give you a very perfect result. But it’s just a game to create a fine line from randomize data. When you use it in trading, you are not trying to draw a fine line. So, most of time, the result is good for attract people to buy an EA, but in won’t perform as it is.

So, you need to know the balance to run an optimization to your EA. All have to be in within good risk management.

If you are looking at MQL5, most EA are showing inappropriate result. They are either history reading, overfit or over-optimized. :slight_smile:
Don’t blame them, we are software developer also need money to eat :sweat_smile:

my colleague, I understood you from the beginning, I’m afraid you jumped to conclusions, which was very frivolous on your part, especially if a mystery person is communicating with you, it is always possible to see something new, new solutions, and you are in a hurry to conclude. I am sure that there are many nasty forex dates in your memory, where there were some moments, you are able to download them and go through this robot, then ask me how it works. and think about what the joke is. I know that everyone is used to thinking that the grid is ■■■■ and everything is bad there, but check for yourself)))

you are too used to seeing crooks around you who want to earn money and talk a lot of empty words

Hi @vlangston, No worry, I haven’t made any conclusion yet.

The truth is I’m running it. I didn’t accuse you as a fake EA. I’m sure, since your EA doesn’t ask DLL to run. Here are the proof, I am trying your EA :slight_smile:

Screenshot from 2024-10-07 18-10-46

Screenshot from 2024-10-07 18-10-55

it’s downloading data now. If it’s good I will try it with TDS. If you don’t mind you can explain a bit about how it works. Btw, I don’t use MT4 anymore. Most of my EA run on MT5 or cTrader.

I’m not allergic with grid system. I have a big collection of gird system if you want to know :smiley:

I can’t deny it. Since my working environment relates to making wealth, greediness is unavoidable. We are still not in heaven yet, can’t complain. I will just slowly move away in such condition :sweat_smile:

Btw, your EA is running, but no result yet … curios :thinking:

Hi @VladislavK, I have tried your EA with ICMarket, Pepperstone, Go Markets, Dukascopy, TickMill … none of them working. :thinking:

Running On EURUSD 1M.

It tells data model low. But when I use my EA, the data quality 99%. :thinking:

Confirm it doesn’t work with Exness as well. :slight_smile:

turn on visualization, you may have a small balance
the robot has protection so as not to spoil your life)))