Descrizione
5 Minute Timeframe Scalping/Intraday strategy for XAU/USD made for explois small fluctuations from the trand to chat the main trend.
An important premise on algorithmic trading and the use of bots: Many seem to have failed to understand that using a single bot is not enough to achieve consistent results over time. Even if this bot is currently quite stable, for good performance, it is absolutely recommended to have a well-diversified portfolio of algorithms. This is the key to success in surviving the financial markets using algorithms. This applies not only to this bot, but to all existing bots, regardless of how well they may have performed in the past. Bots are not designed to replace traders, but to provide support because strategies break down and lose their statistical advantage. It is always the trader's responsibility to supervise them and evaluate whether or not it is worthwhile to continue using them. An algorithmic trader must be like a fund manager who supervises the employees who operate on his behalf.
Strategy: The strategy exploits small fluctuations to capture major market trends. It uses a 1:1 risk-reward ratio with a stop loss of 35 points, equivalent to 3,500 pips (cTrader considers $1 to be 0.01 per point). The trading frequency is 2-3 trades per day, but there may be exceptions, and sometimes trades may not be opened due to the lack of clear trends. Trades close within a few minutes up to few hours, depending on market volatility, the strategy should be runned on the 5 minute timeframe only.
Backtest: Backtested for over 100.000 bars data correspond to over 3+ years. In Sample Date: from 2024 october to May 2026 check the pictures for more, Out of Sample Date: May 2026 to oct 2026.
Parameters: There are no parameters except the contract size and other small optional settings. This is because the strategy has already been optimized and does not require any intervention from the trader. Often many developers insert dozens of parameters but this ends up making the strategy too overfitted and confusing as well as giving the developer the excuse of "did you lose? It's because you didn't use the right parameters" well no excuses here because for this bot has zero parameters.
Position Sizing and Risk Management: This isn't a system that uses averaging/recovery zone or grid approach, but it does use a limited-risk martingale. If the strategy goes badly, at most it will lose a small part profit or the account instead of the entire capital. In fact, the reason why people burn their accounts isn't because of the martingale itself, but because they don't limit their losses and therefore don't manage their risk.
What's Risk Cotrolled Martingale: Unlike a averaging or grid, the single-trade martingale with limited risk consists of re-entering the market only when a new signal occurs, this prevents you from exposing yourself unnecessarily when you are against the market. If the bot has accumulated losses, it doubles up to a maximum of four times resetting the in to initial size if this one also goes bad:
Example 0_10 loss => 0_20 loss => 0_40 loss => 0_80 loss => 1_60 loss => 0_10
