Day Trader: Price Action Bot for Medium Volatility Stocks (TA)

Overview and Suitability This robot for Medium Volatility is designed to open trades during spikes in market volatility, particularly during upward phases. It enters trades on pullbacks following a volatility surge of 10% or more. This bot is tailored for beginner traders, focusing exclusively on long positions, which simplifies trading decisions. Take profits are strategically set at 4%, while stop losses range from 2% to 10% per trade. With a win rate exceeding 70%, the bot offers a robust entry into trading, though users should be aware that drawdowns can reach up to 25%. Fortunately, positions tend to recover quickly.

Strategic Features and Technical Basis The robot leverages significant spikes in volatility to identify profitable trading opportunities. By focusing on moments of heightened market activity, it maximizes the potential for gain.

Price Action Trades are initiated based on a thorough price action analysis. This involves studying past price movements to predict future trends, ensuring trades are made with the best possible insight.

Position and Risk Management The bot maintains an average holding period of 1 day, allowing for quick adjustments to market conditions and reducing exposure to prolonged risks.

This bot is ideal for day traders who are looking to capitalize on rapid market movements. It primarily trades penny stocks, which can offer high returns but also come with increased risk. As with all trading, there is a risk of financial loss. Traders should fully understand these risks and seek independent advice if necessary.

The bot employs a disciplined approach to risk management, setting stop losses between 2% and 10% to minimize potential losses. Its win rate of over 70% provides a level of confidence, but users should be prepared for possible drawdowns of up to 25%.

Trading Dynamics and Specifications:

• Maximum Open Positions: Medium, allowing for diversified exposure while managing concentration risk.
• Robot Volatility: Medium, offering a balanced approach between capturing significant market movements and mitigating sharp declines.
• Universe Diversification Score: High, indicating a broad array of instruments to hedge against sector-specific downturns and enhance profit opportunities.
• Profit to Dip Ratio (Profit/Drawdown): Medium, offering a balanced profit vs. drawdown scenario that makes it an ideal intermediate and experts.
• Optimal Market Condition Medium: If the current market volatility is Medium then you should use the Best Robots in Medium Volatility Market (VIX is Medium - this indicator is coming soon).  

Disclaimer:  Disclaimers and Limitations 

Simulated Performance: All simulated performance results are derived solely from real-time calculations using historical data. Algorithms receive minute-by-minute historical prices and other data from Morningstar and generate trades in real time based on these historical inputs, effectively eliminating any hindsight bias. 

Actual Performance: All actual performance results are derived solely from real-time calculations using current data. Algorithms receive minute-by-minute current prices and other data from Morningstar and generate trades in real time based on these current inputs, effectively eliminating any hindsight bias. 

Gross Performance: Gross performance results do not deduct any fees or expenses. These results reflect the total returns generated by the AI Robots without considering the costs associated with accessing the service. 

Net Performance (current performance chart): Net performance results deduct fees to provide a more accurate representation of returns experienced by the user. These deductions can include: Model Fee Deduction: Net performance results may deduct a model fee equivalent to the highest subscription fee charged to the intended