Specification
Create a trading robot to trade based on a trend reversal strategy, using the Awesome Oscillator and RSI indicators to confirm the reversal in the market trends. It also uses the QM technique, price action strategy, and supply and demand analysis to determine the trade direction.
The robot is designed to compound its profits with a target of 30% per trade.
To manage risk, the robot limits the daily drawdown to 20% of the initial capital, and only risks 15% of the total trade taken in a day. The lot size is calculated as 30% of the initial deposit divided by five, and the robot opens 5 positions at a time on a single trade pair. When the initial trade is in profit of 20% or more, the robot opens additional trades on other pairs.
The robot targets a profit of 20 pips per trade and closes the position at the nearest support and resistance levels. It also uses the Fibonacci retracement levels at 161.8% and 261.8% to take profits, but only considers the 261.8% level if the trade has high buying or selling power, as confirmed by the RSI indicator.
To ensure that the robot is robust and consistent, it is important to test it thoroughly on historical data. The robot should also use multiple indicators and technical analysis techniques to confirm the trade signals and implement money management techniques such as risk and position sizing. Trailing stops and dynamic take profits should be used to adjust to changing market conditions, and the robot should consider incorporating fundamental analysis into its decision-making process. The robot's strategy and parameters should be regularly updated to adapt to changing market conditions, and the robot's performance should be closely monitored and adjusted as needed. A risk-reward ratio of at least 1:2 should be used to ensure that the robot's profits are sufficient to cover any losses. Finally, the robot should consider using machine learning techniques to improve its ability to identify and react to market trends and should use a diversified trading strategy to mitigate the risk of trading a single asset or currency pair.