Day Trader: Price Action for Long Position with High Volatility for Medium and High Liquidity Stocks (TA)

Overview and Suitability: This robot is a sophisticated trading robot designed for beginner traders interested in trading high-volatility stocks with medium and high liquidity. This robot leverages price action and technical analysis to capture trading opportunities during periods of increased market volatility. Its strategy involves making approximately 43 trades over a given period, ensuring that trades are infrequent but strategically timed.

The robot activates after a significant volatility increase of 8% or more, allowing it to enter trades during market corrections or dips. It operates under the assumption that price movements will reverse after a volatility surge, providing optimal entry points. With a take-profit level set at around 4% for long trades and 7% for short trades, it efficiently captures profits while limiting potential losses. The fast stop loss feature ensures that losses are minimized, with a risk range of 2% to 15% per trade, depending on market conditions.

Designed for long-biased trading, the robot focuses on executing long positions to reduce the complexities and risks associated with short selling. However, it is equipped to handle both long and short trades intraday, making it adaptable to various market scenarios. With a win rate exceeding 70%, this robot is ideal for beginners looking for a reliable, less frequent trading strategy.

Strategic Features and Technical Basis: The robot is built around several key strategic features aimed at maximizing profitability in high-volatility environments:

• High Volatility Focus: This robot is calibrated to detect and trade when market volatility increases by 8% or more. This ensures that trades are only executed under optimal conditions, making it highly effective at spotting profitable opportunities in fast-moving markets.
• Long-Biased Trend Trading: The robot primarily focuses on trading in the direction of prevailing trends with a bias toward long positions. By identifying pullbacks and corrections in an upward trend, the robot aims to capitalize on price recoveries and sustained upward momentum. It also takes advantage of downward trends but maintains a strong preference for long positions to align with the upward movement of the market.
• Price Action and Technical Indicators: Using technical analysis, the robot identifies key support and resistance levels and monitors price action to determine entry points. Its reliance solely on technical analysis makes it suitable for traders who prefer a data-driven, objective trading approach.
• Intraday Short Focus: Although the robot favors long trades, it is capable of executing short trades during the day. To avoid the risks associated with overnight positions, all short trades are closed by the end of the trading day, ensuring that traders are not exposed to overnight market fluctuations.
• Fast Stop Loss Mechanism: A critical feature of this AI robot is its fast stop loss, which helps limit potential losses in volatile markets. This mechanism allows the robot to quickly close losing positions, safeguarding overall capital and locking in profits from winning trades.

Position and Risk Management: The robot employs robust position and risk management techniques, making it suitable for beginners who seek a structured approach to trading:

• Risk Management: Each trade has a stop loss set between 2% and 15%, depending on the market conditions. This ensures that the risk per trade is managed and controlled to prevent significant losses. The robot’s strict risk management system is essential for preserving capital, especially for beginners.
• Profit Capture Strategy: The take profit is set at around 4% for long trades and 7% for short trades. This ratio helps maximize gains while minimizing exposure to market volatility. The robot aims to lock in profits as the price moves in the desired direction, ensuring that traders consistently benefit from favorable market movements.
• Drawdown Recovery: In the case of drawdowns, which can reach up to 25%, the robot is designed to recover positions swiftly by taking advantage of market corrections. This ability to recover losses enhances long-term profitability while keeping risk under control.
• Win Rate and Reliability: With a win rate exceeding 70%, this AI robot provides traders with a high probability of success. This feature is especially appealing for beginners who seek a reliable and consistent trading strategy.

Trading Dynamics and Specifications:

Maximum Open Positions: Low, maintaining focused and strategic trading rather than volume, which is suitable for managing high volatility with precision.
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): High, suitable for traders who are focusing either on high profit or low drawdown for potentially higher returns that makes it an ideal for all levels.
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 audience. Actual Subscription Fees: Net performance results may also deduct the actual subscription fees paid by the user for access to AI Robots.