The Panda Robot is specifically designed to trade news events without requiring knowledge of the market’s direction after the news release. It utilizes buy stops and sell stops to enter trades in alignment with the market’s movement. Here’s how the Panda Robot strategy works:
Before the news release, the market may be either trending or consolidating. However, the strategy does not focus on the market’s pre-news behavior. Placement of Orders: Approximately 60 seconds prior to the news event, the Panda Robot places Buy Stop orders a certain number of points above the current market price. Simultaneously, it also places sell stops the same number of points below the current market price. Additionally, stop-loss orders and take-profit levels are set for all the positions.
News Release Reaction: When the news is released, the market typically experiences a spike either upwards or downwards in response to the figures provided. Let’s consider a scenario where the market decides to move downwards (sell direction). In this case, the Panda Robot will activate our sell order. Stop Loss Management: As soon as the trade goes into a profit of 30 points, the stop-loss order is adjusted to the breakeven level. This action is taken to protect our positions, ensuring that even if the market reverses, we exit the trade without any losses.
Trade Exit Scenarios: Reversal: If the market reverses and hits the breakeven stop-loss level, we exit the trade without incurring any losses. Continuation: If the market continues moving in the sell direction, the stop-loss order will trail the price until it reaches the predetermined take-profit level (TP). Once TP is reached, all our positions will be closed, resulting in the maximum profit.
Panda operates using a proportional entry mode, which means that it executes trades based on the size of your account. We have implemented this functionality by introducing a positioning factor. The positioning factor is a value or setting that divides into your account balance whenever the robot intends to trade. For instance, if your balance is $500 and the positioning factor is 50, the calculation would be (500/50) = 10. Consequently, the robot will initiate 10 sell stops and 10 buy stops. As your balance increases, the EA (Expert Advisor) will also increase the number of trades. Additionally, there can be a maximum limit on the number of trades to prevent the EA from surpassing the maximum value set by you. This ensures that smaller accounts do not open an excessive number of positions, while larger accounts can accommodate more positions. Accordingly, as your account grows larger, the EA will progressively open more trades.
Panda utilizes TradAPT technology to ensure its operation in fully automatic mode. To achieve this, we have developed an Expert Advisor (EA) that undergoes extensive testing for each news event and specific instrument with a designated broker. Through optimization, we determine the best settings for each news type, taking into account the unique movements associated with it. Parameters such as stop loss, buy stop, and take profit levels are tested rigorously to identify the most profitable configurations.
Once we identify the optimal settings, we incorporate them directly into the customer version of the EA, ensuring that all relevant parameters are readily available. When the EA detects an upcoming news event of the same type, it automatically switches to the pre-configured settings without requiring any user input. This seamless transition enables efficient and timely trading, maximizing potential profits.
News types that have not proven to be consistently profitable are disregarded, and the EA refrains from trading them. This approach guarantees that the bot exclusively engages in news events that have a historical track record of generating consistent profits. All operations performed by the bot are fully automatic, eliminating the need for user intervention.
As a result, users can confidently deploy the bot with a tested broker and specific instruments. We recommend brokers with fast execution and zero slippage for optimal performance. Feel free to engage in a chat with us to determine if your broker can seamlessly integrate with Panda.
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Disclaimer: Please note that trading involves substantial risk and is not suitable for all investors. Past performance is not indicative of future results. Vestor Finance does not guarantee any specific outcome or profit. Clients should carefully consider their financial situation and risk tolerance before engaging in any trading activities.