Macro News Detection
Our system searches all day long for trading signals as accurate as possible. The most important goal of Revolutionary Signals is to protect capital. One of the safety factors is a fact that every trade is securly calculated and uses a Stop Loss. Business opportunities are being searched for in all time-frames and the size of a Stop Loss (in pips) depends on the used time-frame.
Secure Stop Losses used for each trade to minimize possibe risk. For example, larger Stop Losses are used for higher timeframes and position size is automatically re-calculate to maintain the required amount of risk.
Revolutionary Signals could be split into two categories. The first category consists of signals with a risk reward ratio of 1:3. These signals have a fixed Stop Loss and Take Profit. The second category includes signals with open value of Take Profit. In this case, the profit from a trade is flexible and it is changing according to the market structure. This type of Take Profit is shifted swing by swing from M15 or H1 chart (depending on timeframe where the signal was identified). Trades shifting according to market swings allows us to achieve very attractive Risk Reward Ratio till value 1:10.
Position trailing with the possibility of achieving Risk Reward Ratio 1:10. Another important safety factor is shifting positions to Break-evens. Stop Loss is adjusted to make a loss impossible after profit of open position has achieved a certain amount of pips (the amount depends on the type of signal and time-frame, where the signal was identified). Our trades are well protected against the influence of macroeconomic news (see section Macro News Detection).
MACRO NEWS DETECTION
Macroeconomic news such as unemployment rates, press conferences, interest rates and similar news are affecting the markets on daily bases. Nobody knows in advance what will be the impact of these messages and how will they affect the market. The results of the news does not matter, the important thing is how they influence the technical analysis, which is a base for a majority of forex robots. The influence of the news may result in either a gain or a loss. In any case, this is a random effect on the market. We do not leave anything to a chance and constant watching of the most important macroeconomic news is taken very seriously in our team.
Our signals are not executed during fundament news to avoid accidental impact of reports and to protect capital. New positions aren’t open 20 minutes before fundamental statements and 15 minutes after being declared in order to avoid potential losses. If there are some trades already open (during the fundamental news), the process of capital protection takes place. As far as possible, we adjust the open positions to Breakevens and wait for development of situation. When the period of the increased volatility is over, we continue to work with open positions to gain maximum possible profit. With our signals you are safe, no matter what happens in the world.
It is not a secret that brokers are able and do manipulate market data to gain advantage over traders. However, we have good news! Our signals are well protected! How does protection work?
Signal evaluation - All our signals are evaluated before execution by using live data from three different ECN brokers.
Signal Purity Detection - If a signal is evaluated as “good to go” according to the data from one of the brokers, it does not necessarily mean that it is the same with the other brokers. The best signals are evaluated as “good to go” according to the data from all monitored brokers.
Lot Size calculation - The lot size for every trade is calculated according to the purity of a signal. The purer the signal is, the larger the lot size.
In conclusion, the aforementioned approach provides outstanding protection against data manipulation and generates very pure and strong trading signals.
Genetic programming is a method inspired by biological evolution. It’s main purpose is to find a program that is the most appropriate for a particular task. This method exists in theoretical form since 1954 and is widely used for scientific purposes, but it’s practical significance in trading on financial markets has grown only in the last decade, because due to frequent changes in market behavior, it was necessary to use more complex methods for developing business strategies.
Artificial intelligence methods are used for ensure the succesful adaption to rapidly changing market. Created strategies are strictly tested and analysed over various periods of time. Multiple sources of historical data are used for testing to ensure the robustness strategy.
Individual strategies are monitored during live trading as well. In the case of market changes that would threaten the functioning of the strategy, the strategy is discarded from our portfolio and a new strategy, which has been tested on the latest data, is used. Our team is developing new strategies and adjusting portfolio signals over time to fulfill the necessity of adaptation to constantly evolving market.
Money management is a key element of any profitable trading system and it’s an essential part of the Revolutionary Signals logic as well. As previously mentioned invested capital is protected against manipulation by brokers (risk is determined according to signal quality). The basic rule of our Money Management is the fixed size of the acceptable loss. It is not only about the determination of the Stop Loss for each executed transaction, it is also about the total amount of capital that can be put at risk on a particular day. If the system reaches the maximum daily loss, it automatically ceases to trade and starts to wait for any improvements in the market conditions.
The value of acceptable loss is securely specified for each trade and cumulatively for all trades per day as well. No unpleasant surprises will ever happen. Our Money Management oversees hundreds of signals that may be considered opportunities for trade, however, the system executes only a limited amount of signals in order to meet the strict rules. As soon as any of the open positions move to break-even (the position cannot cause loss anymore), the logic of Money Management recognizes this situation and allows another trade to be open, which increases the earning potential.
CURRENCY PAIR CORRELATION
The final business strategy consists of hundreds of trading signals that are traded in several instruments. These signals could be similar for one or several instruments. Our system recognizes that similarity and adjusts importance of particular signals to prevent executing the same or very similiar signals multiple times. This correlation fuse prevents “overheating” of the capital and helps to maintain very consistant results without any pendelum.