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


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

It’s because they’re based on real manual trading systems professional traders also use. Unlike a majority of automated trading systems (trading robots) that were created with lagging indicators and past price action (fitting the price curve), our robots were designed from manual trading systems I’ve personally been trading with since 2012.

The trading strategies we use are not the latest new thing. In fact, they’ve been tried, tested and true – manual trading strategies we know work. All we’ve done is taken the trading systems and automated them so anyone can use them.

I’m going to lay out a detailed explanation of these trading strategies below.

Some people on my team have said, I was crazy to expose my trading strategies. However, I’m like Richard Dennis, the creator of 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 in our trading robots, I believe you’ll be more comfortable trading them and feel confident to stick by them even during the rough times.

Meet our robots

Satoshi EA

Satoshi EA

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

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 candlestick patterns, but Satoshi focus on the four highest probability reversal patterns:

•    Hammer/Shooting Star
•    Bullish Engulfing/Bearish Engulfing

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.  90 percent of the bounces will come after the Hammer/Shooting Start or Bullish Engulfing/Bearish Engulfing patterns.

EURUSD chart with Japanese candlestick reversal pattern examples

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.

GBPUSD Bullish engulfing pattern Entry example

Satoshi is ordered to trade 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 setups)

What to expect from Satoshi EA:

  • 3-5 trades per month split in 3 parts.
  • Average Win rate of 62% 
  • Average Risk:Reward ratio of 1:1
  • Positive expectancy 0.24R

Backtest results (2010-2015) - 2% risk per trade (aggressive mode)

Download full list of trades

  • Average yearly profit - 27.3% (uncompounded)
  • Average monthly profit - 2.3%
  • Maximum Drawdown - 8.9%
  • Profit factor - 1.77

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Gunner EA

Gunner EA robot

The Forex market is unique in that it trades 24h 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, should the currency pair have had a strong direction through the hole previous week.

This is 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 different than other days in the market. Mondays feel like everybody is waiting for someone to make the first move.

It kind of reminds me of school dances where the boys and girls are standing on opposite sides, waiting for one person to make a move. And, once that person made the brave move, everybody else gets in on the action.

Gunner uses this market phenomenal with amazing success. It takes up to three trades from three different baskets:

  • Basket Nr1 - EUR base pairs (EURUSD, EURJPY, EURCAD, EURAUD, EURGBP)
  • Basket Nr2 - GBP base pairs (GBPUSD, GBPJPY, GBPCAD, GBPAUD, GBPCHF)
  • Basket Nr3 - All currency pairs (EURUSD, EURJPY, EURCAD, EURAUD, EURNZD, EURGBP, EURCHF, GBPUSD, GBPJPY, GBPCAD, GBPAUD, GBPCHF, AUDUSD, NZDUSD, AUDCAD, AUDCHF, AUDNZD, USDCAD, USDCHF, USDJPY, AUDJPY, NZDJPY, CADJPY, CHFJPY, CADCHF, NZDCAD, NZDCHF - 27 pairs in total)

The only downside of trading during this time is the large spreads and market gaps. This is why the Stop Loss for Gunner has to be quite large – 100 pips.

What to expect from Gunner EA:

  • Most weeks 1-3 trades on Mondays
  • Average win rate of 83%
  • Average Risk:Reward ratio 1:0.5
  • Positive expectancy 0.24R

Backtest results (2010-2015) - 2% risk per trade (aggressive mode)

Download full list of trades

  • Average yearly profit - 43% (uncompounded)
  • Average monthly profit - 3.6%
  • Maximum Drawdown - 5.8%
  • Profit factor - 2.33

Click the image to enlarge it

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Fey EA

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 zodiac sign, it could have an effect on people’s minds and, in turn, affect the financial market.
This is especially true if the price had a strong trend when the moon entered the new zodiac sign, as it tends to mean the trend will stall or 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 lifetime studying W.D.Gann.

With his permission, I’ve automated the strategy. I was quite sceptical at the beginning. But it was easy for me to test the strategy out since I just had to alter the moon ingress times to some random times. It was my surprise when all the random times generated negative results while the correct moon ingress 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.
While the moon changes zodiac signs once every two or three days, there’s not always a strong trend during a changeover.  The good thing about Fey is that should the reversal trend occur, the risk:reward ratio is very good, up to 1:5.

What to expect from Fey EA:

  • 1-2 trades per month
  • Average win rate 38%,
  • Average Risk:Reward ratio 1:4.5
  • Positive expectancy: 1.09R

Backtest results (2010-2015) - 2% risk per trade (aggressive mode)

Download full list of trades

  • Average yearly profit - 16.6% (uncompounded)
  • Average monthly profit - 1.4%
  • Maximum Drawdown - 6.6%
  • Profit factor - 2.79

Click the image to enlarge it

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Dream Team

Best forex robots

Every one of our trading strategies are tried and tested real-life trading strategies that we’ve automated so anyone else can use them.

Still, they are unique.  We’ve combined them into a single portfolio that lets us diversify our trading and smooth out the equity curve to ensure consistent growth in any market conditions year after year.

 

 
 

Evestin Forex Portfolio of three strategies Backtest results (2010-2015) - 2% risk per trade (aggressive mode)

Download full list of trades

  • Average yearly profit - 84% (uncompounded)
  • Average monthly profit - 7.1%
  • Maximum Drawdown -  14.7%
  • Largest profitable month - 27.6%
  • Largest losing month - 7.1%
  • 10-20 traders per month
  • Average win rate 68%,
  • Average Risk:Reward ratio 1:1
  • Positive expectancy: 0.36R
  • Profit factor - 2.03

Click the image to enlarge it

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START 30-DAY FREE TRIAL TODAY

 Try our automated trading systems on your own Live or Demo account for FREE. We give FULL unlimited access to our trading systems and servers when you sign up to 30-Day FREE TRIAL. Only pay if you're 100% satisfied with our trading systems. I'm sure you'll Love them.

With a smile,

Ivo :-)

 

*Past performance data used for illustrative purposes only and is not necessary a guide to future performance



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