I've always had a simple goal to make a small percentage profit per day. With the power of compounding in financial markets it really turns into a large amount over time.
Hey everyone, my name is Jacob and today I'm going to be discussing how my stock market trading bot makes 1% profit per day. I'm going to explain to you how it works and why it's extremely powerful thanks to the 8th wonder of the world compounding. I also made a youtube video on it here.
So my automated trading system is pretty simple, it uses historical data combined with volume and some machine learning to forecast potential future prices. These predictions are not 100% accurate but instead provide levels of support and resistance for technical analysis, my trading bot then goes long or shorts depending on the direction of the market and how it crosses these generated prediction points. I primarily trade the futures market, I think it's the best instrument for day trading as it provides decent leverage and liquidity is never a problem. There is also tax benefits and is not subject to the Pattern Day Trading rule.
Anytime my trading bot enters a position, it aims for a 1% profit and risks between 0.5%-0.7% per trade. Not the greatest risk to return ratio but it's above 1 which is great, as long as I have an above 50% win ratio (which I do) it's profitable. My trading bot completely makes all decisions on it's on and I simply monitor it to make sure it's working correctly. It provides such a competitive advantage as it can execute trades immediately.
I've been working on trailing stops to potentially increase these percentages especially on the wins side but I am only back-testing right now and have no hard data to back it up, I'm pretty excited about these potential results and pumped to see them trade real-time.
I talk more about my trading bot below, I hope you find value in this :