Ivo Luhse

By Ivo Luhse, robot trader & founder of Evestin Forex - Follow me on social media:


Why do we make the claim that our trading robots have character?

It’s because our trading robots use real manual trading strategies professional traders use. Unlike a majority of automated trading systems (trading robots) that are created with lagging indicators and past price action (fitting the price curve), our robots have been coded to trade manual trading systems I’ve personally been trading with since 2012.

The trading strategies we use for our robots are not the latest new thing. In fact, they’re tried, tested and true – manual trading strategies that have worked for decades well before Evestin Forex robots where created. All these trading strategies work with or without automation. All we’ve done is taken these trading strategies and automated them so anyone can use them.

Thanks to automated backtests we now have a solid statistical proof that these strategies have an edge in the markets. This gives us a huge confidence to trade these strategies removing any guess work and emotions from trading. You can rely all your trading on probabilities and statistics. This is a very important aspect of trading. As and engineer I struggled to trade just on my mentor's recommendation. I needed a statistical proof that his strategy works. This is when I started my journey into Automated trading by creating a robot to do automated backtests for me.
And the rest, as they say, is history. I now trade only using robots and have build 4 robots I trade with today.

I’m going to lay out a detailed explanation of all 4 of the trading strategies my robots use below.

Some people on my team said I was crazy to expose my trading strategies. However, I’m like Richard Dennis, the creator of famous turtle traders, when he said the following:

I always say that you could publish my trading rules in the newspaper, and no one would follow them. The key is consistency and discipline. Almost anybody can make up a list of rules that are 80% as good as what we taught our people. What they couldn’t do is give them the confidence to stick to those rules even when things are going bad.
— Richard Dennis

By providing a detailed explanation of the trading strategies our trading robots use, I believe is the only way you’ll be comfortable trading them and have the confidence to stick by them even during the rough times.

Meet our robots

Satoshi

Satoshi EA

Satoshi robot trades using Japanese candlestick patterns.  I first learned about Japanese candlestick patterns from my mentor Andrew Mitchem

I immediately saw the great potential in trading using candlestick patterns, as they gave me easy to spot visual clues about the market’s direction.

Candlestick charting first appeared sometime after 1850. Much of the credit for candlestick development and charting goes to a legendary rice trader named Homma from the town of Sakata. It is likely that his original ideas were modified and refined over many years of trading eventually resulting in the system of candlestick charting that we use today.

There are more than 30 different candlestick patterns but this is not a lesson about candlesticks. All you need to know is that Satoshi trades only the four highest probability reversal patterns:

  • Hammer - Bullish reversal pattern

  • Shooting Star - Bearish Reversal Pattern

  • Bullish Engulfing - Bullish Reversal Pattern

  • Bearish Engulfing - Bearish Reversal Pattern

For these patterns to be valid, the market has to be in a clearly definable uptrend/downtrend…even if it’s a short-term trend.

To define a trend, Satoshi uses Bollinger bands and will only take reversal patterns if they appear at or near the Upper Bollinger band for Sell trades or near Lower Bollinger band for Buy trades.

Unlike the Stock market, the Forex market rarely trades in strong trends. This makes the Japanese reversal pattern strategies an ideal fit for the Forex market.

It’s common to see the price bouncing from the Lower Bollinger band to the Upper Bollinger band and back down once more.  Majority of these bounces will be picked up by these 4 patterns - Hammer, Shooting star, Bullish engulfing and Bearish engulfing

EUR/USD Daily chart with Japanese candlestick reversal patterns

For entries, Satoshi uses Limit orders at an 80 percent retracement of the setup candle. This comes to a rounded Fibonacci retracement level of 0.786.

This is a happy medium between a good Risk:Reward Ratio and missing out on possible profitable trade.

Stop Losses are placed below the setup candle for Buy orders and above the setup candle for Sell orders.

Satoshi divides its entries into three parts to attain the most profit the market is willing to give us. Stop Loss and entry price is the same for the three orders, but there is a difference in Take Profits.

•    TP1 - 120% extension of the setup candle
•    TP2 - 160% extension of the setup candle
•    TP3 - 220% extension of the setup candle.

These levels are rounded Fibonacci numbers and also coincide with daily pivot point Support/Resistance lines S1/R1 for TP1, S2/R2 for TP2 and S3/R3 for TP3.

GBP/USD Bullish engulfing pattern Entry example

We trade Satoshi on four major currency pairs and Gold on Daily charts.

  • EUR/USD
  • GBP/USD
  • USD/JPY
  • AUD/USD
  • XAU/USD

While other cross currency pairs can be added, we stick with just the major pairs to avoid correlation. (Most days cross pairs and major currency pairs will produce very similar trades)

What to expect from Satoshi robot

  • On average 5 trades per month split into 3 parts.
  • Average Win rate of 60% 
  • Average Risk : Reward ratio of 1:1.13
  • Positive expectancy 0.28R
  • Average trade length: 5 days

Backtest results (2011-2017) risking 2% of account per trade

Download full list of trades

  • Average yearly profit: +22%
  • Average monthly profit: +1.8%
  • Maximum Drawdown: - 10.4%
  • Profit factor: 1.7

Satoshi robot stats

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Gunner

Gunner EA robot

The Forex market is unique in that it trades 24 hours a day. Before trading closes in New York, the market in Sydney reopens - 24 hours of market trading, five days a week. It closes down only for the weekends.

After more than 10,000 hours of chart watching, I noticed the market open Monday morning has specific, predictable price action.
It generally retraces against the move from the week prior, if the currency pair had a strong one directional move through the whole previous week.

This is due to profit taking that is happening after such a strong move and because traders in Asia are cautious in taking any large positions before the market opens in both Europe and the U.S. They typically wait for these markets to provide them with the direction the market is going to take for the week. It’s why Mondays tend to be very different than other days in the market. Gunner uses this market phenomenal with amazing success.

Gunner can take up to 2 trades each Monday from these two currency baskets:

  • Basket Nr1 - EUR base pairs (EUR/USD, EUR/JPY, EUR/CAD, EUR/AUD)
  • Basket Nr2 - GBP base pairs (GBP/USD, GBP/JPY, GBP/AUD, GBP/CHF)

The only downside of trading during the early hours of market open is the larger spreads and market gaps. This is why it is very important to trade Gunner robot only with our recommended brokers. Other brokers can have very large weekend gaps and weekend spreads of up to 30-50 pips making this strategy untradable.

What to expect from Gunner robot

  • Most weeks 1-2 trades on Mondays
  • Average win rate of 65%
  • Average Risk:Reward Ratio of 1:1.2 (initial R:R 1:05)
  • Positive expectancy of 0.45R
  • Average trade length: 1 day

Backtest results (2010-2017) risking 2% of account per trade 

Download full list of trades

  • Average yearly profit: +19.2%
  • Average monthly profit: +1.6%
  • Maximum Drawdown: - 3.0%
  • Profit factor: 2.34

Gunner robot stats

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Fey

Fey EA forex robot

Fey is the most special robot with an extraordinary trading strategy.
She uses the W.D. Gann modified Astro-trading strategy, a practice that relates to the movements of celestial bodies to events in the financial markets.

The idea, Market Wizard W.D. Gann had, was when the Moon or any celestial bodies like planets and stars moved into a new cycle, it could have an effect on people’s minds and, in turn, affect the financial markets.
This is especially true if the price had a strong trend when the moon changes cycles, as it tends to mean the trend can stall or even reverse.

I am not an expert on W.D. Gann’s strategies, but this method was provided to me by a fellow trader who has spent a lifetime studying W.D.Gann. With his permission, I’ve automated this strategy. I was quite sceptical at the beginning. But it was easy for me to test this strategy out since I just had to alter the moon cycle times to some random times. It was my surprise when all the random times generated negative results while the correct moon cycle times generated great profit year after year.

Fey is like Satoshi in that she uses Bollinger bands to determine the trends. She trades on the EUR/USD currency pair since it’s the most traded currency pair in the world and has the best effect for this strategy.  She doesn’t make a lot of trades per month – one to two on average.  The win rate (~36%) is low for Fey robot so you need to be disciplined and patient when trading this strategy but the Risk: Reward Ratio is very good, up to 1:5 so it is very rewarding when Fey delivers these extraordinary high rewarding trades when you least expect.

What to expect from Fey robot

  • 1-2 trades per month
  • Average win rate 36%, with most trades closed for Break-even
  • Average Risk:Reward ratio 1:5
  • Positive expectancy: 1.16R
  • Average trade length: 1 day

Backtest results (2010-2017) risking 2% of account per trade

Download full list of trades

  • Average yearly profit: +8.6%
  • Average monthly profit: +0.7%
  • Maximum Drawdown: -4.1%
  • Profit factor:  2.84

Fey Robot Stats

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CABLE

Cable robot Evestin Forex

Cable is our newest addition to our portfolio. Cable robot uses the liquidity contracts between the quiet Asian session and the very active European session. While you can trade the Forex market 24 hours a day, not every hour in the market will be the same. The Forex market has 3 very distinctive trading sessions Asian (or Australian) session, European (or London) session and US (or New York) session. And each of these sessions will have different activity levels for different currency pairs due to the local currency supply and demand, international trade routes and central bank locations.

The two Currency pairs that you can see the biggest differences are GBP/USD and EUR/USD These two currencies will be very quiet during the Asian session and typically trade in a tight range as there is just no demand for these currencies in Asia. But then in the European session, these currency pairs are the most traded and very active. If you ever heard of London breakout strategy you will know what I'm talking about. Cable robot uses a variation of London breakout trading strategy. But instead of looking for breakouts Cable robot trades reversals in the Asian session 2 hours before London open. The idea is that since there is no demand during Asia for these currency pairs any breakouts before London session will be reversed.

Cable robot is our most active robot taking trades nearly every day. However, Cable robot needs good activity during European trading sessions so if there is no activity (moves smaller than 100 pips) Cable robot will be paused until the high activity in the markets is back.

What to expect from Cable robot

  • One average 1 trade per day when Average Daily Range on EUR/USD and GBP/USD is above 100 pips.
  • Average win rate 75%
  • Average Risk:Reward ratio 1:0.6
  • Positive expectancy: 0.2R
  • Average trade length: 2 hours

Backtest results (2010-2017) risking 2% of account per trade

Download full list of trades

  • Average yearly profit: +9.3%
  • Average monthly profit: +0.8%
  • Maximum Drawdown: -4.5%
  • Profit factor:  1.76

Cable Robot Stats

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Robot Dream Team

Best forex robots

While every one of our trading robots is an excellent trading robot based on a solid, proven and tested real life manual trading strategy. The real magic happens when you place all of them in a single portfolio to trade on one account. Allowing robots to work in a team spreads the risk, reduces the drawdown periods and improves the returns.

When market phases change from trendy to range-bound markets your robots will perform differently and if you only trade a single trading strategy or a single robot you can endure prolonged drawdown and stagnation periods until the market phase changes again to favour your one trading strategy or one trading robot. But if you trade with multiple robots, like we do here at Evestin Forex. Each with totally different trading strategy, each with its own strengths in different market conditions. This robot dream team will cover for one and each other. If one robot is underperforming under certain market conditions other robots will make a profit.

This is the real secret how professional traders spread the risk across multiple trading strategies and achieve the consistent results with controlled risk. Don't make a mistake many traders do by placing all your eggs in one basket or trying to predict market phases in advance. No-one can predict the market!  Creating a portfolio of multiple robots to diversify your trading will ensure consistent growth in any market conditions year after year. 

Evestin Forex Portfolio of Four robots Backtest results (2010-2017) risking 2% of account per trade

Download full list of trades

  • Maximum Drawdown: -10.2%
  • Longest stagnation period: 133 days
  • Probability of a losing month: 20%
  • Largest profitable month: +19.5%
  • Largest losing month: -5.5%
  • On average 20 trades per month
  • Average win rate 68%,
  • Average Risk : Reward Ratio 1:08
  • Positive expectancy: 0.25R
  • Profit factor: 1.91
  • Average yearly profit: +59%
  • Average monthly profit: +5%

Evestin Forex Portfolio stats

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TRY EVESTIN FOREX ROBOT PORTFOLIO ON YOUR OWN ACCOUNT 

 Try our 4 robots on your own Live or Demo account for FREE. We give full unlimited 30-day Free access to our trading robots and our servers. Come and check how our trading robots can change your trading. I'm sure you'll Love them.

To your trading success!

Best,

-Ivo



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