13. Corrective Profit

Transcript:

Hello, dear traders. In this video, I will speak about, the robot, provided by the Liberty XVP department.

This robot is called corrective profit, and it can be used on different currency pairs with different settings.

Today, I'll show you the main features of this robot, and we're gonna make several back tests, in this video.

I'll be using control points modeling method to make it faster, because, if you use, modeling, every tick, method, it takes much more time. So we're gonna use control points if you see that results are good. For example, in the future, where you make your own tests, then you can retest it, slowly with every tick to get the modeling quality that is better than control points. So a few few words about this robot, it works in two directions. So we need to use, different bots and different charts. So we're gonna put it like one robot with buying trades. We're gonna put on one your USB chart and the second bot with, selling trades.

We're gonna put on the second chart. So we're gonna have, like, two big tests. First big test, we make from, the beginning of two thousand and twenty two till the end of this year.

I already made some adjustments with the parameters, and now I need only to press start. And we can switch to the graph and look how the trades are made here.

You can see that, Robert is making a lot of traits and it gains capital step by step. Sometimes we have these drops that we call drawdowns it appears because we use averaging method. It means, that, when we have, a trade that goes in loss, we do not close it in loss. We, average it.

It's, to say we open additional trades, with, with the specific efficient, to, get more profit from the last rate, when the market, turns back and closes all deals with profits. So that's why you can see sometimes that, this robot gains extra volumes.

That's why, we need to have some capacity of funds in case of a drawdown, but still due to the historical bug testing, as you can see, for example, it's two thousand and twenty two. Yeah.

Our profitability was six hundred and fifty four with the maximum drawdown of one thousand and, twenty seven.

If we, I, I already saved to this report here. You can see the same numbers. The good thing here is that, if we'll combine these two charts, we're gonna have the profit that is bigger than the maximal drawdown, because you cannot be in a drawdown simultaneously with buying and selling trades. So here, it was, the, like, buying chart.

How does it look like? I hope you, like, understand the way it's reflected here. All blue lines, they showed the distance, that the bind order traveled, till it was closed. And that will gonna make, the selling, a version of, the back test, and you'll gonna see the red lines that will all show, the, the process of the selling trade, being in the market.

So we go to expect properties.

And we, change long only to short only. And after we press start, and we can also switch to the graph and see how this robot was working when it was selling.

Actually, we address distributing buying and selling costs, you can use different parameters because, sometimes currencies, they grow faster than they fall down, and it's better to use one type of parameters for buying trades and another type of parameters for selling trades, For example, as you can see, we're selling trades. We have, much more safety picture here. There are no huge drawdowns.

The incline, balance line of, like, the profit where we are making is, really, really cool.

And, when we'll switch to the chat, you'll see that, most of the trace that we are closing very quickly. And we were not gaining, big positions, and we were not, waiting for the market to close the trades for a couple of weeks.

It's, like, you need if you want to get the clear picture, of the, of these strategy overall, you need to backtest it on several years of history to understand, that, this strategy really works so our back test is, going to its end and, we're gonna see the report when the test is over. As you can see, we made, eight hundred dollars of profit with a drawdown of only three hundred and ten dollars. Like, it's a good number. And if we'll open a chart, as I said, you'll see the red lines that are showing the, travel and period of the selling trade.

And there were only few situations where we were gaining a lot of trades. Usually, we're closing them, very quickly. And, that's why we we have very small drawdowns. And also, we were trading during this period, we were not waiting till, the basic trades will be closed.

So that's why we gained more profit.

If you will compare, like these two charts, you will see that the drawdowns that were happening in different time. As I said, you cannot be in a drawdown simultaneously with buying and selling order because one of them will be progress, will be profitable. So, it means that if we'll, calculate the overall performance, It will be six hundred and fifty four US dollars plus eight hundred and two.

We're gonna have the total profitability of one thousand and almost five hundred dollars, and we'll compare it to the maximum drawdown for this period, it was, around a thousand dollars. So it means that for two thousand and twenty two, if we would have been trading with these parameters, we would earn, almost a hundred and fifty percent from the risk that we put in the market. So it means that, like, when you trade with, with the maximum risk of, let's say, thirty percent, It means that you could have made, like, less forty four percent of profit, absolutely, passively.

And, like, using this robot on a single currency pair, but imagine that you're gonna find parameters for all of the, like, rest currency pairs. You can make a lot of different combinations, and you can get some ready made parameters from the VIP department.

You need to clarify it from your personal manager.

How to get it and also you can investigate and look for, the parameters maybe that may be more effective. You can use optimization with the parameters as I showed you previously in the videos about the optimizations.

And, you can combine your own individual investment portfolio with, like, different robots they trade on different time frames and currency pairs, and diversify your passive income.

Thanks for watching. Wish you good luck in trading.