Rocket Sloth

My CFD trading algorithm has been live for over three years, showing consistent performance with controlled drawdowns. It's a multi-currency system, actively managing 8–11 currency pairs selected based on volatility, macro trends, and pair dynamics. The strategy emphasizes capital preservation over aggressive forecasting, with floating loss treated as a critical health metric—not a byproduct.

At its core is a three-layer hedging framework: correlation hedging across pairs, volatility hedging for expansion/compression phases, and intra-pair long/short directional hedging. These layers work together to maintain market neutrality when needed, buffering against shocks and directional bias. The system avoids martingale tactics and instead uses intelligent, structured hedging aligned with real-time market behavior.

Risk controls are deeply embedded. The algorithm continuously monitors trades, deploying successor orders and defensive layers when necessary. In chaotic conditions, it issues context-based hard stop-losses—not as a sign of failure, but as a deliberate capital-preservation measure. This removes emotion from decision-making and ensures strategic consistency.

To measure performance, I created a proprietary Capital Efficiency Ratio (CER): monthly return divided by average floating loss. A high CER reflects not just profitability, but efficiency in risk deployment and capital use.

The algorithm has proven resilient during major market crises since 2020, including COVID-19, Brexit volatility, the Russia–Ukraine war, JPY depreciation, and trade wars. Through all phases—calm or chaotic, trending or range-bound—it has remained disciplined, adaptable, and focused on long-term sustainability.