README Documentation (updated often): https://bit.ly/41FPceY
In this video we are talking about potential changes in a trend. You can see on this chart that the price is going down, while the main trend is shown by these two moving averages here still is going up, but when the price goes below the two moving averages, that might indicate that we see a change in the long term trend. So let’s zoom into the chart here. Today is January the 15th. I had to restart the robot trading system with a different trading account because last week I wasn’t able to change my Metaquotes demo investor password and that is what actually is required to update statistics on myfxbook.com.
And I learned that FXBlue isn’t supporting Metaquotes demo accounts so I couldn’t publish my stats. The last trade today was about 2 hours ago. Currently we are $520 into the profit and now the question is how should we configure the system to deal with a potential change in the trend here? We have done a lot of trades in the last few days, but right now it looks like the price might go below the two moving averages here. And if it does, we need to have a rule for what we want to do and when we want to do it.
Most discretionary traders would make an emotional decision, but we are able to measure things. For example, if you click onto the chart and press the mouse button in the middle, you can measure the distance from the current price to the upper moving average, which is 318 points right now. And it’s possible to set a rule that the system will only trade when a minimum distance between the moving average and the current price is at least 200 points. On the other hand, if we stop trading here, it might take two or three weeks until the main trend actually has changed enough so that the price would be below the two moving averages. And we see a crossover because as long as the green moving average is above the red one, this is still a valid uptrend.
If we zoom into the chart as much as we can and disable the auto scroll for now, we can see that this uptrend has been valid since November 2023 and we have not seen any crossovers here. The price touched the upper moving average two times, but this time it’s very close. Currently we have no open trades, so there are two possible options. Either the price stays in a range where the system decides that the distance to the SMAs is high enough. In that case it will open further buy trades.
Or if the price goes below the minimum distance or crosses the moving averages, the system will wait until the price is back in the buy area where trading is allowed or it will wait until the main trend changes to a downwards trend. And so far I am satisfied with the results. Of course we could increase the position size or the risk level, but I’m more about stability. So we will see what goes on this week. And that’s it for this video.
I say thank you for watching. Oh by the way, this is the statistics site. You can click on the link below the video description and you can analyze all the details here. In my case it’s German because I’m from Germany, but it will recognize the native language on your operating system. So that’s it for now.
If you would like to code your own robot trading system or if you are interested to hire this one, you can either contact me or go to my website. For now. I say thank you for watching and I will see you in the next video.