[smartretailtrading] Trend Bounce cBot

This is the “Trend Bounce cBot”.

This robot can be optimized/adapted for all markets. It offers, in addition to the basic trading strategy, a variety of filters that allow you to trade only the market phases in which the robot performs best. The optimization depends on the market, the broker, your conditions, the risk tolerance, etc. Therefore, we present here a robot with which you can flexibly adjust a trend strategy. We do not prescribe or recommend any settings. An optimization is mandatory before this robot can be used.

Here is a “backtest only” version of the cBot for testing and optimization: Trend Bounce cBot - Smart Retail Trading

Here is the annoucement of our 1 Million project: Project: From 1000€ to 1€ million in 10 years with algorithmic trading - Smart Retail Trading

Strategy

This strategy works best for long positions – so we recommend it for long only (but short is possible too). It opens a trade if …

• the price crosses over (long) or under (short) a moving average line and
• two average values of the last 4 fractals validating the long or short direction and
• the last 2 bars confirm the trend

The moving average type you can choose. We made good results with Hull.

This type of strategy works in trending markets but when the market goes sideways it could loose. So we have a lot of filters for you:

• ATR – you shouldn’t trade if the volatility is to low or to high
• ADX – shows you if the market is trending
• higher timeframe Slow EMA and higher timeframe Fast EMA. So you can choose to trade in higher timeframe trend direction only.
• Trading time filter
  • choose the days of a week you want to trade
  • choose the hours you want to trade

Risk management with …

• fixed SL and TP or with dynamic SL and TP based on the lows of the last x bars combined with ATR.
• Stochastic – you can use it for advanced taking profit.
• Trailing SL and break even is also possible (we recommend to use only one of them).
• Money management you can choose lot size or percentage of balance.
• Stop trading if drawdown reaches a limit.
• use pending orders with an expiry date
• close trades after x bars

Backtesting results

This is only an example for an instance (Ger40.cash). Please do your own testing and optimization!

The optimization was done with data from 11/2020 to 07/2023 with an FTMO account.

The results depend on your broker and the money management.

Quantity : 2% balance percentage –> ~+170% and ~13% equity drawdown with Tick data from 11/2020 to 07/2023 with a FTMO swing account.

Further informations please visit https://smartretailtrading.com/trend-bounce-cbot/ or write an email to: info@smartretailtrading.com.