Tag: python trading bot

I Made A Trading Bot And Ran It For 24hrs Straight

Post author By Trading Rush
Post date August 24, 2021

Tag: python trading bot

Previously, Bill the bot took 200 trades in the direction of the trend in less than 2 hours and made almost 2000 dollars in profit. That’s almost a 2 percent gain in just 2 hours. If it can make money by taking random trades in the direction of the trend, what can it do with a high win rate trading indicator? What if I ran the Trading Bot for 24hrs with a strategy that got a high win rate after testing 100 times on the Trading Rush Channel?

So I ran Bill the Bot for 24 hours straight with the highest win rate trading strategy, and I can’t believe what happened at the end!

Bill the Bot took the first trade on USD CAD, and the trade immediately made a loss of 200 dollars, and then the trade was down by 400 dollars. Then Bill the Bot took a new trade on AUD USD, and it must be Bill’s Bad Luck again because the price decided to move in the opposite direction as soon as he entered the trade, and made an unrealized loss of around 500 dollars. But then Bill the Bot got overconfident and decided to take another trade on the USD CAD pair when the pair is already making a loss. There is a big problem with Bill the Bot!

You see I told Bill the Bot to risk around 1 percent per trade this time, and I also told him to look for MACD entry signals on 10 different pairs using the 5 mins timeframe, but since the market moves in a similar pattern, Bill the Bot encountered the first big problem. Similar market movements were generating similar entry signals! When Bill the Bot was not taking trades, it was not taking trades for a long time. But when it was taking trades, it was suddenly taking multiple trades in a short period of time which was a bad sign.

But when Bill the Bot decided to take another trade on the already losing pair, the broker rejected the order because of insufficient margin. Risking around 1 percent per trade was using almost 50 percent of the available margin. Suddenly the lack of margin was a good thing as it was stopping Bill the Bot from taking multiple similar trades at the same time. If Bill the Bot can make a significant amount of money in 24 hours, it will not only be better than 95 percent of traders, but it will also show us something really interesting at the end.

The second trade Bill the Bot took almost made a loss of 1000 dollars, but since the stop loss I told Bill the Bot to set was at a good distance away from the entry price, the price reversed just before triggering the stop loss. But then Bill’s bad luck caught up and got the price overexcited again because the price on the AUD pair started to make sudden big moves.

The trade Bill the Bot was holding for more than 2 and a half hours, unfortunately, was gone in a matter of few minutes because of a sudden big move. Not only that, but the strong sudden move made trade lose more than 1258 dollars, which is more than what we anticipated. Now Bill the Bot not only has to recover from this loss, but it also has to deal with sudden big moves for 24hrs straight. Let’s see if it makes money.

The first trade Bill the Bot took was still running even after 3 and half hours. Since there is no AUD in USD CAD, this trade didn’t make a loss, but then, Bill the Bot decided to take another trade on AUD pair, and this time there was a bigger problem.

When Bill the Bot took the trade on AUD JPY, the profit started with negative 500 dollars. This is bad because it means we are taking trades in the wrong time zone. There is a good time to trade and there is a bad time to trade. Since Bill the Bot is taking trades 24hrs straight, it has now entered the bad time zone where spreads are horrible and the price movement is bad. This means that stop losses will be triggered easily and the profit targets will not. By taking trades for 24hrs straight, Bill the Bot not only has to deal with this nonsense but also has to make money with a lower win rate in this time zone. If Bill the Bot doesn’t take many trades in these bad hours, the win rate will get better as the spreads will get lower, otherwise Bill the Bot has a big problem.

The price in these bad market hours stayed in the sideways direction for the most part, made a move towards the stop loss at one point, and then actually made a move in the entry direction. But unfortunately, the spread was so bad that when the trade triggered the profit target, it only made a profit of approximately 470 dollars, which is not even a half percent. But by the time the price on the very first trade decided to touch the profit target, the spread got better and the USD CAD trade actually made a profit of approximately 1000 dollars.

But then Bill the Bot took a trade on a USD pair that immediately started to make a big loss. It touched and crossed the 1000 loss limit by not 1, not 2, but 3 times, and at this point, I thought something was wrong with Bill because he was not closing the trade, but no! Bill was so confident in the MACD’s entry direction, that he decided to take another trade on the same pair, and it actually worked! But that’s not good enough! Bill the Bot made almost 2000 dollars by taking random trades in the last video, if the MACD strategy has to prove its 60 percent win rate, Bill the Bot has to make even more profit in the remaining 12hrs, even with the big spreads.

But then I noticed a bigger problem. After leaving Bill the Bot to Trade on his own, I didn’t look at the screen for more than 12hrs straight which was a big mistake, because when I came back, Bill the Bot took a short trade on the GBP JPY pair. Nothing looks wrong at first. The price made a good move in the entry direction and touched the profit target, but for some reason, the trade only made a profit of 900 instead of 1000 dollars. Something was wrong!

So I did some digging to find out where the 100 dollars were disappearing and realized that Bill the Bot successfully told the broker to take a short trade at 150.916, and set the profit and loss targets at an equal distance away from entry price, which in this case was 1000 dollars profit loss away, but for some reason, the broker decided to take the trade at 150.897, which turned 1000 dollars profit loss into 890 dollars profit and 1100 dollars loss respectively. This should not have happened!

Bill the Bot was looking at the last ask price while taking 200 random long trades in the previous video, but when I wrote the new code for this experiment, by new code I mean, copy the code from the previous video, right-click and paste, I forgot to tell Bill the Bot to look for the last bid price instead of the Ask price while taking the short trades. So now Bill the Bot not only has to survive the bigger spreads in bad markets, but also has to make a significant amount of profit in 24hrs, while making 1000 dollars in a long trade, but only making 900 dollars in a short trade.

Luckily the next trade was a Long trade on USD pair, but unfortunately Bill the Bot took Short trade on a similar USD pair, and on top of that, the trade that made the loss was the long trade, resulting in a loss of thousand dollars, but only a profit of 800 dollars.

It must be Bill’s Bad luck because the next trade was also a short trade, but this time Bill also took a long trade on USD CAD. The Short trade only made a profit of around 900, but this time the Long Trade made a good profit of 1004 dollars. This is when Bill the Bot entered the best time to trade zone where the spreads were lower and the price movement was good. Unfortunately Bill the Bot took a short trade on AUD JPY and only made a profit of 900 instead of 1000. But then something interesting happens, Bill the Bot took a long trade on the USD CAD pair and the trade quickly makes a loss, then a few minutes later, it takes another trade on the same pair in the same direction, and actually makes 1000 dollars in profit.

This was one of the short trade Bill the Bot took where the price was moving in the downward direction. Bill knows the price is in a downtrend by looking at the 200 period moving average. The trading bot took a short entry at this candle when the MACD gave a short crossover above the zero line. Bill decided to set the stop loss at a good distance away from the entry price, which in this case was above the 200 period moving average resistance. If the price decides to move towards the stop loss, it will have a difficult time crossing this moving average resistance, which is good!

But not all trades were good. This is a trade I would not have taken in the live markets. Bill the Bot took this trade because of the MACD signal, but this setup is actually not worth trading, because the price was choppy, then lost momentum, and is starting to move in the sideways direction.

Then Bill the Bot found one of the best trading setups, where the price was in a good downtrend and near a breakout resistance, and this trade actually made a good profit!

I downloaded the transactions of the last 24 hours and opened it using Excel, and looks like Bill the Bot lost money at the beginning, then made a small profit by winning trade in the bad market where the spreads were bigger, then recovered the loss, then the balance graph made a good move in the upward direction, and kept going in the upward direction for few hours before making a good amount of loss, but then made an excellent profit.

By taking trades for 24 hours straight with the highest win rate trading strategy we have ever tested on the Trading Rush Channel, Bill the Bot was able to make more than 5000 dollars in profit. That’s more than a 5 percent gain in just 24 hours. If it can make 5 percent in 24 hours, what will happen if I ran the bot for an entire week with the highest win rate trading strategy we saw on the Trading Rush Channel? Let’s find out in the next episode! That’s all! Get to see how I get a high win rate with the current best strategies I use by supporting Trading Rush on Patreon. Thanks for watching!

I Built A Trading Bot And It Actually Made $1000 In 2hrs!

Post author By Trading Rush
Post date August 12, 2021

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Tag: python trading bot

I made a Trading Bot and told it to take 100 Trades, and just to help him a little, I showed him the direction of the trend. If this trading bot can make money simply by taking 100 Trades in the direction of the trend, I think we all can agree that Bill the Trading Bot will be better than 90 percent of traders. But that’s kind of scary because robots are not only taking over people’s jobs but can also trade better than 90 percent of traders.

The first thing we need to do is find the brokers that will let you take trades using a bot. So after some googling, I found one, and…

We need to learn a new language. And two weeks later, I wrote some code and it somehow worked! Okay Bill the Bot, take over my job.

But how are you going to make the bot trade successfully you ask? Well, the secret ingredient is not a high win rate trading strategy, not even the MACD strategy that got a 60 percent win rate, no-no-no. All we are going to use is the holy grail of trading! Money Management! But can it really make money with just money management? Don’t you need at least a strategy for entry signals? That’s a good question, but Bill the trading bot already has two things better than a human. It does not think with emotions, and it can actually follow a written trading plan!

But first, we will need a baseline. If Bill the Bot actually makes money after 100 trades, how do we know it was actually better than average? First, we will tell Bill the Bot to take 100 random trades in total on 10 different charts. I created a demo account for this experiment where the commission was included in the spread, and the entry timeframe was set to 1 minute. Since the spread on the smaller timeframe is sometimes too big, I waited and told Bill the Bot to only take trades during the New York and London session, where the spreads are lower and the price movement is good. When we will take 100 random trades, we are expecting the Bill the Bot to end up with a small loss at the end.

In the first experiment, Bill the Bot took 10 trades in total on different pairs every 5 minutes. Bill the Bot first looks at the last traded price, then sets the stop loss and profit targets at a good distance away from the entry price. You can see where it decided to set the profit and stop loss on the left side. On the right, you will see if the trade is making a profit or not, and the position size. Here you will see if the account balance is going up or down, and the available margin. I actually ran this experiment before, but the trading bot ran out of margin because the position size was too big. So I told Bill the Bot to reduce the position size per trade, and it looks like he is successfully taking 10 trades at a time.

The account was up by 100 dollars at one point, but when Bill the Bot took 100 trades in around 50 minutes, there was a small loss even after commission just like expected.

I downloaded the transactions and opened it using Excel, and Balance Graph was looking really flat. You can see that the price made a move in the downward direction at the start, then made a move in the upward direction, made a profit, and then slowly made a move in the downward direction, and made a loss of approximately 26 dollars.

This will be our baseline.

If Bill the Bot can make more money than this by trading in the direction of the trend, it will be better than 90 percent of the traders. But then I noticed that multiple pairs have the common currency on the same side. There is USD on the right side, and there is USD again 3 times on the same side. If the price on USD falls, the four pairs can move in a similar pattern.

In the second experiment, Bill the Bot will take 10 trades on 10 pairs every 5 minutes, but this time, it will take opposite trades on these similar pairs to see what happens. Since last time a lot of margin was left unused, I told Bill the Bot to increase the position a little. First, it took a trade on Euro USD, then on GBP JPY, and then on GBP USD, and then it lost money. It took 100 trades in the second experiment and only made a small loss just like before.

I opened the transactions using Excel and looks like the price made a move in the downward direction at the beginning, but then went in the sideways direction.

Since the loss after 100 random trades was around 700 dollars, can Bill the Bot trade in the direction of the trend, and make significantly more profit than what it lost in the third experiment? I found the GBP JPY chart that was up trending on multiple timeframes. So I told our little Bill to take long trades on this pair every 1 minute.

Without a proper trading strategy, Bill the trading bot doesn’t have much luck in getting a high win rate.

Bill is pretty much taking random trades, and the only things in his favor are the trend direction and money management. If you take random trades, you will most likely get a win rate of around 50 percent. But since there are charges for taking trades, you will make a small loss at the end. In this case, the commission is included in the spread. So as long as Bill the Trading Bot makes money just above 50 percent of the time, it will not lose money, something that many traders struggle to do.

When it will take trades every minute in the direction of the trend, more trades will end up in profit, because the price has a higher probability of moving in the direction of the trend.

But Bill can’t be silly and risk more money per trade because if the price makes a sudden move in the downward direction in this uptrend, Bill the Bot will lose a lot of money.

So instead, we are going to make Bill do the smart thing. We are going to make the bot risk less than 1 percent of the account per trade. So when it will take multiple trades at the same time, it will be similar to averaging but in the direction of the trend.

But now, if you noticed, the trading bot is not using a lot of margin even though it is taking multiple trades at the same time. So I told him to use that extra margin to take trades on other pairs.

Now, the Bill the Trading Bot is taking 2 long trades every 1 minute. One on the GBP JPY pair, and one on the Euro USD pair. Both of these pairs are trending in the same direction in the long run. I adjusted the profit loss distance for the Euro USD pair and let Bill the Bot take 100 trades on its own. Now that we are taking 2 trades at the same time, we are actually taking 200 trades in total. Let’s see how Bill the Bot takes around 200 trades on its own.

It must be Bill’s bad luck or that beautiful face that got the price overexcited, but the price made a sudden big move in one direction.

This move is probably caused by some news. On the Euro USD pair, the price made a strong sudden move in the downward direction, which means the stop losses are going to get hit. On the other hand, the price on the GBP JPY started to make sudden strong moves in the upward direction.

Now you might think, if the price is suddenly going towards the stop loss on one pair, and towards the profit target on the second pair, one should make a loss and the other one should make a profit right?

No!

The price not only made a loss on the first pair, but it also reversed just before triggering the profit targets on the second pair and made a loss. Because of this news event, the account was down more than 1000 dollars.

Now Bill the Bot not only has to recover this loss with its just above 50 percent win rate but also has to make a profit. With 2 trades every minute, it should take Bill the Bot around 1 and half hours to take 200 trades. So if Bill the Bot can make more than 1 percent in just 1 and half hours, it will be a big deal, because then we can run it for 24hrs straight with a good strategy to see by how much percentage it can grow the account in a day.

As the price began to make moves in the upward direction on both pairs as expected, more and more profit targets were hit. The loss we made because of the news was around the 14th trade, but by the 39th trade, the Trading Bot already recovered the loss and was sitting with a small profit.

Furthermore, it is still not using most of the available margin, which means we can tell Bill the Bot to increase the profit per trade whenever we want.

This time when I opened the transactions in an Excel Sheet, the price was going in an upward direction. We told the Bot to trade in the direction of the trend, and the balance was actually moving in the upward direction. This was the balance graph of the first experiment when we took random trades, this was the balance graph when we flipped some of those random trades, and this, is the balance graph when we told the trading bot to take random trades, but in the direction of the trend! The bot lost money at the beginning because of the news, but since Bill the Bot actually followed the written trading plan with proper money management, it recovered the loss and made a profit, then lost money again, then recovered that loss, and made an excellent profit at the end!

Bill the bot took 200 trades in the direction of the trend in less than 2 hours and made almost 2000 dollars in profit. That’s almost a 2 percent gain in just 2 hours. If it can make money by taking random trades in the direction of the trend, what can it do with a high win rate trading indicator? What if I ran the Trading Bot for 24hrs with a strategy that got a high win rate after testing 100 times on the Trading Rush Channel? Let’s find out in the next episode! That’s all! Support Trading Rush on Patreon and Get to see how I get a high win rate with the current best strategies I use. Thanks for watching!