Stock Market Day Trading Robot Software / Robot Info

Robot Info

 

Robot Stock Trading System Info

 

My Trading Robot is truly a unique stock trading robot. It watches a basket of stocks in real time and then alerts when the robot finds a trade. All subscribers receive the robot's buy/sell alerts in REAL TIME over AOL instant messenger, what the average gain usually is, and what the stop should be. All gains and stops are dynamically calculated and are based on the last 2 weeks (approx) of trading action from what actually happened. So if the average gain long on GRMN is 1.39, that means over the last 2 weeks, for every single long trigger that happened, the average gain achieved at peak was 1.39 points profit. Over time the numbers vary depending on the market conditions. The more prone a market is to trend type action, the larger the gains will be on average. The less prone a market is to trend type action, meaning really choppy action, the numbers will drop over time. The Robot can and does adapt to any and all market conditions.

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THE ROBOT DOES NOT TRADE PENNY STOCKS - THIS IS THE REAL DEAL

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The robot uses many proprietary technical indicators that are not in any book, seminar or manual. They were custom developed over the last 7 years and have been in use on a daily basis for discretionary trading. The robot applies the same set of rules to all stocks watched. There is no optimization, genetic algorithms or anything else that would curve fit the results. The robot is able to trade on any time frame, from minute based charts to tick based charts. Since the rules are fixed, it does not matter. The robot is currently using all tick based charts for every stock. It could just as easily use 5 minute charts (the standard for most technical analysis programs) but this creates some problems for anyone wishing to trade: you are imposing an artificial time frame on a stock, and as such are more prone to false moves.

 

Everyone knows that certain times of the day are more active than others. Using minute based charts, you are making the assumption that the volume and trade level is evenly spaced throughout the day. Tick based charts one day may have 150 bars, and another day, if super active, may have 400 bars. This definitely makes a big difference to trading and signals. Now the robot does work fine on minute based charts, but it works even better on tick charts. On tick based charts, when the market is active, 1 bar might only last 30 seconds, and when inactive, it might take 5 or 10 minutes to finish the bar. This enables the robot to catch signals sooner when the market is active, and to avoid false signals when the market is slow.

 

The robot waits until a bar is completed (tick based) to issue any signals. The reason for this is very simple - its easy for any technical based system to get tripped up intra-bar with a signal 10 seconds into the bar that completely reverses 1 minute later (robot uses tick, time is for reference only). This avoids a lot of false signals and noise. Once a signal is determined and verified, it sends this out in real time to all subscribed members via AOL IM. Included in the alert is the Symbol, Trigger Price, Average Gain, and Stop Price. In order for a trade to be tracked, the trigger price has to be broken by at least .01. Once this occurs, the trade is tracked until the signal is lost. The trade is trailed up from the original stop price by the amount of the gain achieved. So if the trigger price is 50.00 and the stop is 49.60, once 50.00 trades, the robot will move the 49.60 stop up by the amount of the peak gain. After 10 min, if the peak gain is 0.75, the new stop price is 50.15. For obvious reasons of usability, reporting back every stop price change creates an overload of information. However, most trading platforms these days have a trailing stop feature which can track the peak price and move it accordingly should anyone want to follow and learn from the robot. Once the robot is 65% or more to the target range, the stop is moved up to the entry price + .01 so the trade cannot lose.

 

It is assumed that anyone watching the robot trade will be knowledgeable of current market conditions and adjust expectations accordingly. All of the robots targets are the average gained long or short - it does not happen every time - nor would it be even remotely believable if it was reported as so. There are times where most longs will go very little, then stop out, or conversely, most shorts will go very little, then stop out. However, the average gains reported by the robot include all this noise, including trades that only go 5c then stop out. On average, the peak gain to peak loss during a trade on all stocks is 2:1. This means if a trade has an average gain of 1.00, the expected average loss would be 0.50. Obviously this ratio varies by stock and changes over time depending on that individual stock and the trading activity.

 

The robot is able to tell you about this type of behavior by telling you if the trend is uncertain, or favorable. Favorable trades means given the exact same situation (technically, several factors) for this stock and a signal occurs, does a long or a short position usually make more money. Favorable means the trade direction of the signal usually makes more money, risky means usually the opposite makes more money. This does not mean to fade the signal when it is unfavorable. All it means is longs don't do as well as shorts gain wise - longs might make .68 and shorts .88 -- however this does not take into account doing the opposite of the signal - only if similar stock conditions happened, and a short signal occurred, it would generally make more money. Uncertain means be on guard for price reversal on the signal prematurely and expect it to happen often if market conditions are poor for that direction. It boils down to price action - has the stock been acting better WITH the trend, or AGAINST the trend lately - this can and does vary over time. Just because a stock is in a downtrend does not mean longs wont gain - sometimes they can be more powerful than if the stock was in a slow uptrend.

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ROBOT FAQ

 

How do I know if the Robot works or not:

 

 

This one is easy. Since its FREE, go to the sign up page, enter your name and email and start watching it. Don't take anything on this website for granted. That is the easiest way to see how the signals happen, what kind of gains it makes and overall the feel for the robot. Also from the IM, you can use commands to query the stats on any stock the robot is trading. It will give you average gains long and short, last signal time and price, number of trades it has done, Starting date, Market Trend and a bunch of other information.

Unlike MARL and a bunch of the other junk/so called robots out there, this is the real deal. It trades real stocks everyone has heard of and does not promise anything other than what you can witness yourself. It is designed to educate viewers about trading and teach them through watching it trade in real time. It does not nor will it ever trade penny stocks, bullitin board or other junk like that. It can just as easily trade GE (and make money) as it can CME. All of the stats on the front page are derived from the last 10 days of trading. The Points Gained on the home page is the total points gained by the robot, from which the total drawdown of all trades has been subtracted (This feature currently broken on home page). This is probably the most fair representation you will ever find for any trading system like this. Take the gain, then take out the amount that gain went against you during the trade - and that is the recorded gain. This gives you a true representation of the incredible edge the robot has.

Does it ever lose? Of course it does. However the Points Gained INCLUDES points lost via any draw down, INCLUDING TRADES THAT GO 0.10 UP AND THEN GO 1.50 DOWN. In this case, the points gain recorded would be -1.40. The robot does not make money on every stock every day. Some days certain stocks its totally in sync with, other times almost every move is faded that starts. What is important is over time on a basket of stocks traded all the time, it is generally right. It also adapts to all market conditions. How does it do this? Well that part is a secret but I can tell you it has 100% to do with the proprietary trend shift signals it uses which can detect a change in sentiment even when price is still going in the opposite direction sometimes. Again I am sure you don't believe me - and rightly so. I don't care as I know the robot works and I use it to find great ideas each and every day. As it costs nothing to view the robot at present, why not SIGN UP NOW and see for yourself over a few days or weeks and judge for yourself.

 

 

What is the deal with the percentage returns on the front page:

(This is currently broken, apologies)

The returns on the front page are reported by the robot which records the gains and losses for each and every trade that triggers that the robot is following. When you are day trading, you may trade the same stock 5, 10, or even 15 times during the day. If at the end of the day, you made a net 7 points from trading (points gained) and the stock was trading at 100, the actual percent return (if you want this) is 7%. 7 points / 100 dollars per share. It does not matter if you traded it 10,000 times. You can only be long or short, one at a time. So you use the money, then close it out, and repeat. At the end of the day, you still only needed enough money to trade the stock 1 time.

So when you put this across a basket of 30-40 names and do the same type of thing every day on them and then figure (approximated, crudely) hypothetical annual returns, this is why they seem so high. In reality ALL THAT MATTERS is the points made, the percentage gained is irrelevant. I only have that up there because most people do not understand if I tell them the robot made 27 points today. That does not equate to anything meaningful. In reality what that means is whatever unit size you bet (share size) you multiply it by the points gained to get profit. So if your average trade size is 200 shares, and the robot made 27 points, that equates to 27*200 = $5400.00. Again, remember the ROBOT IS NOT TRADING REAL MONEY, does not deal with real world issues, so that (theoretical) gain is unachievable - however it does have major, significant edge and does regularly find large, short term winners. Read more to find out why.

 

How do I interpret the Points Profit:

(currently broken on front page)

The Points Profits reported as gained on the front page are NET POINTS. What do I mean by NET POINTS? Well every time you put on any trade, whether short term, or an investment there is a drawdown. That is the amount the trade moves against you before going in the desired direction. The NET POINTS are the total max points made less the total max drawdown for all trades. In other words this is showing you the EDGE. In addition, a majority (from viewing the data, I dont have stats) of the trades the robot does, the max drawdown happens AFTER the runup, meaning you were profitable first, then it fell apart at some point. A much different situation from behind to recover type trading.

To put it in perspective, if you trade 100 stocks for a 0.50 max gain every time, but in doing so the trade goes against you 0.50 at first or at any time during the trade before its closed out, the NET POINTS are 0. Sure you might think you make 50 points, but the way the robot calculates the NET POINTS, that is 0 points gained. Even if you closed out the trades for an average of 0.25 gain, the robot would record this as 0 gain because there is no edge. It becomes no different than a coin flip. It is easy to see the edge the robot has from this example, but again do not take my word for it, watch the robot trade for a few days and determine for yourself.

Another way to look at the front page stats - if the robot Points Profit, for example, is 350, and the Total Trades is 700, this tells you that every single trade (averaged) had a max gain of 0.50 (350/700) per trade. I do not know of any other trading tool out there that can put that kind of edge in the hands of the public.

When was the last time every trade you did had that kind of edge? And this is reported from only the last 10 days. The statsistics are updated each and every day, so its a rolling 10 days back. Just think about it for a second... if you had a crystal ball that said any stock you trade will go up 0.50, would you throw that information away? I doubt it. I could report stats for the last 40, 60 or even 90 days. If people do want to see it, the stats are basically exactly the same as for 10 days, with a bit higher drawdown because the more data you throw at it, the less it is able to adapt to a new, short term situation. However the robot works off of statistics and too much data muddies the situation and there is no reason I have found to keep that much data loaded into the robot.

The robot is able to adapt to any current market conditions, but loading more data in does not make it do that better. It only needs a nominal amount of data (about 20 days or so) to operate efficiently.

 

What timeframe does the Robot trade on:

 

 

 

The robot uses tick charts. A proprietary formula is used to figure out for each stock the appropriate tick settings to use intraday. All stocks are wached on tick settings from 40-4000 ticks. Once every 2 months or so, the tick settings will be adjusted by the program to adapt to current market conditions. This has nothing to do with any program settings, none of which are optimized - the rules are fixed for each symbol exactly the same, it simply adjusts to the activity level of the stock. The tick setting varies with market conditions because of trading activity. A better setting gives a quicker signal when one is determined. The robot can work on any time frame (many tick variations to 30 min charts tested) but has never been optimized for the "best" time frame, nor even attempted at so. The difference is subtle, but once you go down that path, you have the possibility of curve fitting the results by then going into other aspects. The robot performs so well, there is no need or want to ever do that.

The robot is capable of using higher time frames, as discussed above but was designed primarily as a day trading robot, not a swing or buy and hold robot. Once you get into longer time frames, the risk of a large overnight gap against you, or adverse news items increases dramatically. All this forces you to do more homework. What news is due out tomorrow? What earnings are due out that might impact this trade? Try this x 20 or 30 names and you will see what I mean. There is nothing wrong with swing trading or investing, but an automated robot is best suited to short term trading.

 

 

How are the stocks determined that the Robot is trading:

 

 

 

The robot is capable of trading almost any security it tracks. The goal when trading is to maximize gains. So the stocks it is currently trading (about 160 names) all have big gain potential. Sure it could trade INTC, MOT, GE etc, but the average gain for a symbol is directly related to HOW MUCH IT IS CAPABLE OF MOVING. So if you load it up with stocks that have a .25c range high to low for the day, its kind of hard for the robot to make 2.00 gain on a stock like that since it never moves that much. The current stocks can and are replaced with others over time. Basically you want high velocity stocks that are active. If I switch the robot to swing trade mode (by using 10 min to 30 min charts), then its totally fine to play stuff like GE, MOT, INTC etc. Users are able to customize a watch list from the global list the robot trades.

 

 

 

Why does the Robot only trade intra-day:

 

 

 

The robot was designed from the ground up to be a DAY TRADING ROBOT and capture as many short term moves as it can identify. There are tons of swing trading sites out there, along with newsletters, recommendations, emails and other ways to find longer term trades. There is very little anyone ever does with intra-day trading because of the dynamic nature of the market and the difficulty in finding any solution that works over time. Also due to the aggressive nature of the robot, of course it is not for everyone. In fact it probably only is appropriate for less than 5% of investors/traders out there. Anyone wishing to learn from the robot by watching it is welcome to do so. Also the robot is being artificially restricted to a maximum of 160 symbols. The reason for this is simple - beyond that number it starts to be impossible to follow and the computing horsepower to watch each tick goes up dramatically as you scale up to hundreds of names. What is the point of receiving 38 buy signals and 12 short signals all at the same time - unless a computer is trading it, its worthless information. No different than having 25 news feeds open on your desktop in real time - sure it looks neat, but its information overload.

 

 

 

How does the Robot identify trades:

 

 

 

The robot uses a series of proprietary trend change formulas, along with an extensive set of qualifying rules and statistics to pick trades it thinks will go up or down. Nothing the robot uses to identify trades is in any book, manual, seminar, or program that has been published anywhere. They are exclusive to the robot. Even the way the robot watches the stocks is exclusive. Some stocks it may use a 232 tick chart, others it may use a 1008 tick chart, or even 1400 tick chart. No matter what those settings are, the rules it follows remain the same and are applied across each stock in the same way. There are no optimizations of any kind on any stocks. The rules are applied and the robot uses them to trade the stock. Each trade, once triggered, is followed until stopped out or it loses the signal. All gains, and losses (drawdown) are tracked and recorded. All these stats are available thru the robot interface. On average, the gains:drawdown ratio is 2:1 or better for most symbols. Over time of course this varies. There may be times where its 4:1 and times where its 1:4 on some symbols depending on the market and that sector. The robot is able to adapt over time to any market conditions. As the robot continues development, there will be a feature implemented whereby it can watch 100 names, and only show trigger alerts on the top 30 performing names for the last 10 days. This would be a dynamic list that changes from day to day depending on how the robot does on that symbol over time. Currently, users are able to customize the watch list from the 160+ names the robot trades, but it is not possible to see only the "best performing"names at present, although with a bit of homework (robot commands) these can be figured out.

 

 

What is the best way to follow the Robot:

 

The robot is designed to be a trading tool - it is not the holy grail nor is it the road to untold riches. It does uncover an high amount of profitable trades(defined as going in the trade direction a decent amount), both long and short. Because of the dynamic nature of the market, profit targets and ranges are only an estimate based on current conditions AND historical statistics. However a good deal of additional statistical information is available to anyone watching the robot trade. The average gain and average loss are available, and every trade has a fixed stop that the robot adheres to that trails the trade up. It is not designed to be a buy and hold or sell and hold strategy or method of any kind - in fact if you wait until the signal is gone, more than likely you will have given back way too much of any gains achieved or even now be at a loss. The choppier the market, the higher the likelyhood this will happen, the more trendy the market, the less likely this is to happen. The robot is designed as an educational tool only, and is in no way a financial advisor of any kind or sort - any other use is at your own risk.

 

 

What does a signal look like :

 

The alerts come over AOL IM and look like this :

635 I have a short signal on WMT on break below 51.27

The initial caution price is 51.73

The target range for WMT is 51.09 to 51.03

Once filled I will set a trailing stop on WMT from 51.86

Trend Status on WMT is uncertain.

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WMT trade will only be tracked if it trades at least .01 below the trigger price of 51.27.

The initial caution price is a monitor price for the first 15 minutes its in the trade. Statistics on the robot show that trades that do not violate this price in the first 15 minutes of trigger (approximate) perform far better than those that do violate that price.

The trend status is telling you the trade is either uncertain, or favorable. An uncertain trade is one where given similar conditions on the stock and a short signal occurs, the short will on average do better than the long. Uncertain trades have to be monitored more closely as they can reverse easier against the trader. Favorable trades are ones where the trade direction vs stock action are aligned. The stats shown via IM are the stats for that condition only -- in other words if the condition above was favorable - the average gain might be 2.23 instead of 1.29. All statistics are derived in real time from monitoring the trades. One note as example - an uptrend does not guarantee a favorable trend if long - over time stocks change and often the best shorts (biggest gains) can occur when a stock is in an uptrend IF the trigger is right.

The max stop price is a hard stop that trails the price. The robot will exit the trade if this stop is hit. This hard stop does move up over time by the exact amount of the peak gain achieved so far. These stop changes are not relayed over as it is just too much information happening to see the stop on 12 stocks change every 1 minute or so (or even every few seconds, if the market is in a big trend).

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When the robot exits a trade (either stopped out or loses signal) the following will be sent out:

1201 I lost the short signal on WYNN with a max gain of 1.18

1201 My exit price at signal loss was 105.33 for an exit profit of 0.25

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The exit price is given for reference only, as is the exit profit (or loss) at signal loss. The robot is not designed for anyone to hold trades until the signal is lost. For example, the average gain on the WYNN short, when that signal was given, was 0.74 cents. So once its beyond this or close it should be monitored very very closely and exited when appropriate. If the trend and market conditions are really good - it could go far far beyond the target. If conditions in the market are not that good, and the stock is choppy, it could go much less. The average gain is given as a reference target to watch for.

The other message that will be sent across is the following:

801 I lost the long signal on AMZN, the trade never triggered.

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This happens when a signal is set, but the threshold price is never crossed and the stock fails. It lets you know that the robot is no longer monitoring that symbol for a trade at the current time.

 

 

Should I follow and trade all the Robot's picks:

 

 

 

Emphatically No - the robot is not a financial advisor, nor does it have any information about anyones financial means or ability to withstand substantial losses that can occur with short term trading.The robot is for educational and informational use only and IS NOT TRADING AN ACTUAL ACCOUNT AND ALL RESULTS, EVEN LIVE BROADCAST TRADES, ARE HYPOTHETICAL. It is very very active and is not designed so that someone can follow and execute all the trades it does. It can and does act faster than a human can at times when the market is moving fast. While watching the robot, it can and does give good information in real time, and possibly some great trade ideas. However it is suggested that everyone watching the robot trade consult a qualified financial consultant prior to engaging in any and all trading activity. The robot is also a computer program, which due to its nature, can and probably does have some bugs in it that affect performance. While every effort has been made to get rid of them, there is no way to ensure there are none. Also since the robot is not trading real money, its ability to continue to trade is unhampered by any string of losses it may accrue - whereas an investor/trader may not be able to continue to follow the trades after a string of losses, thereby hindering any potential gains which may occur in the future.

All gains shown on this website and by the robot thru the use of looking at its statistics are HYPOTHETICAL, as they have not all been traded in real time with real money. Anyone watching the robot should keep this in mind. The effect of slippage and/or commissions on any results have also not been taken into account in any way. All historical returns are the result of putting the rules of the robot to work back in time and tracking what would have happened going forward. Mytradingrobot.com makes no guarantee of any historical or future performance of the robot and is not an investment adviser of any kind. All considerations of the robots performance should be determined from watching the real time signals over several weeks and determining whether the method and information works or not for your situation and not from anything published on this site. Because the robot is a computer program, there may or may not be significant errors that are undetermined that could be affecting the performance results, both good and bad. Every effort has been made to determine the statistical back test results are correct and not in error but are not guaranteed in any way or form. Watching the robot trade live and seeing it work properly and make or lose money does not guarantee future performance in any way.

 

 

 

What is the best way to use the Robot:

 

 

 

The Robot will send out its picks in real time to all subscribed viewers. Once a signal is sent, the robot waits for the price break to begin tracking the trade. The average gain achieved for that type of trade is given, as is the stop the robot is using. All of the gain stats reported are the average runup amount to peak. Loss stats (drawdown) is kept separately. On the front page of this site is the Total Points Gained over the last 10 days - this number includes all drawdown amounts that occured in the last 10 days. In other words, if a point total of 350 points is shown, this is INCLUSIVE of subtracting all drawdown peaks that occured on every trade. So if a trade on AAPL has a peak gain of 1.38, and while the trade was tracked it went .68 below the entry price (at any time, including after it has made the 1.38 gain), the recorded gain for AAPL would be 1.38 - 0.68 = .70 gain for the front page statistical calculations. THIS FEATURE IS CURRENTLY NOT WORKING

Anyone watching the robot might have a different view of where to take profits, cut off, place a stop and/or not trade a signal. The robot always applies the same rules every time. Also anyone watching the robot is assumed to have real time intraday quotes. Everything the robot does happens in real time, without that you are working with a handicap that cannot be overcome. Most of the robots trades only last from 5-30 min max, with an occasional one that may last for a few hours IF the trend persists. Also some trades, if initiated near the close will be held overnight by the robot and closed out the next day.

 

 

 

Why are the Robots gains posted in points and not percent:

 

 

 

All of the Robots gains each day are reported in total points gained: Since its not a fully automated trading machine, all it can do is track the trades until they either get stopped out or lose the signal. In order to compute true percent gained, one would have to know how much money is being traded, how many shares etc. The robot is a trading tool, not a trading system. As such it is perfectly fine to compute the points gained per day. The approximate percent gained per day is computed by figuring out the avereage price of all the stocks traded per day, and then figuring the percent gained in total points off that number. Since the robot is 95% daytrading (vs holding overnight), it is using assumed leverage (again no fixed dollar amount) to do the trades. The robot is capable of 100% daytrading (no overnight ever) - however it does add a significant amount to the return by holding some trades overnight without adding much to drawdown. Also the same stock is usually traded multiple times each day, both long and short. The only way to figure out how much you made is to add the points together, then figure it on the price off the stock.

As such, in order to be as conservative as possible, ALL NET POINTS GAINED AND REPORTED ARE THE SUMMATION OF (MAX POINTS GAINED) - (MAX POINTS DRAWDOWN) during all trades. In other words its taking any gains and subtracting any amount it may have gone against that trade direction. There is no other trading tool ever that uses this method to report results. This is basically eliminating the drawdown and showing the net edge by using this tool by assuming you lost that amount from the return. This method may be changed over time to address other issues, but will be disclosed on the site. All statistics are derived from the robot reporting them back. Because the robot is a computer program, there can be errors in the calculations due to unforseen circumstances or logic errors. All stats, trades, and messages should be considered 100% hypothetical at all times as the robot is not actually executing any trades with real money.