Big Data Algorithm (Advanced hedging & money management)

This article was written for this product: https://www.mql5.com/en/market/product/41480

"Big Data Algorithm Hedging" is a self-learning, genetic algorithm that determines high probability points of entry in price direction. Its built-in artificial intelligence utilizes deep learning neural networks to exploit raw edges found within the market. Because of its ability to adapt to market conditions, this system has maintained its edge for over 15 years. To further reduce risk and maximize profits, an advanced money management methodology is put into place and is adjustable based on your personal preferences.

4-in-1 trading logic and advanced money management:

• Artificial intelligence through deep learning neural networks to predict price direction
• Intelligent hedging that adjusts to market conditions automatically
• Autonomous lot sizing based on risk profiles (fixed or variable)
• Basic & advanced money management (trailing stop, breakeven, hedging) to minimize risk

Artificial intelligence through deep learning neural networks

An multivariate input layer consists of >= 6 nodes (Xi) of associated variables at any point in time, governed by an autonomous process of deep learning and genetic algorithmic churn that shuffles the relevant variables in order to adjust to current market conditions. Associated weights (Wij) of the input layer are determined by micro-structural changes in the state of the market and price movements. The hidden layer of the neural network receives >= 8 nodes (Yj) and assigns weights (Wjk) according to the in-sample (IS) and out-of-sample (OOS) tests to ascertain valid signals. In the output layer, the filtered signals (Uk) are streamlined into >=1 buy or sell orders.

Intelligent hedging that adjusts to market conditions automatically

The forex market is a fat-tailed distribution disguised as a normal distribution. As a retail trader, you want to be on the right side of a fat tail market movement when it arrives. Our intelligent hedging methodology maximizes the fractal behaviour of price movement to hunt for opportunities on both ends of the pareto spectrum.

Autonomous lot sizing & advanced money management

Having precise entries is akin to having good attacking skills from a football team. Sound money management is having that strong defence that you need to ensure consistent victory. The BDA algorithm comes with built-in advanced money management capabilities, including trailing stop, breakeven and hedging.

Our algorithms go through a rigorous 3-step process to identify anomalies in the markets to generate alpha:

1. Big data mining: We procure massive quantities of high-quality tick data from hundreds of regulated brokerage firms, including STPs, ECNs, NDDs and market-making brokers.
2. Machine learning & artificial intelligence: Using at least 15 years of raw data, our proprietary machine learning algorithms run millions of in-sample and out-of-sample tests to identify nuances in each market. Armed with potentially exploitable edges, we then employ artificial intelligence to accelerate the strategy development process, and filter the quality strategies from the mundane ones.
3. Monte Carlo simulations: We make use of multivariate Monte Carlo simulations to stress-test our algorithms to its breaking point. Each simulation produces a minimum of 10,000 possible equity curve permutations, validated by market variations to enhance its chance of success in live trading conditions. Of every 100 strategies developed in steps (1) and (2), only 1% of them make the final cut.

11 years of robust testing with variable spread (99.9%).

1k capital, fixed lot 0.01, 1:100 leverage, AMM disabled, 2010 to Jul 2019:

11 years of robust testing with variable spread (99.9%).

10k capital, 0.5 percent lot, 1:500 leverage, AMM enabled, 2010 to Jul 2019: