Our company started to work on developing trading strategy based on widely known Camarilla strategy in 2010. In 2014, on the basis of this strategy, Shadow Camarilja advisor was created, trading intraday and on the break though of the constructed channel accordingly with Camarilla strategy calculations.
During the process we found the areas that got the most guaranteed profit beyond the boundaries of calculated intraday Camarilla channel. This zone can be defined as the channel's "shadow".
Initially, the strategy was developed for safe trading, without any use of the "martingale" or averaging systems. So the advisor is not leaving the loss making positions to float free in the market, but closes them by StopLoss, entering the market on the new trading day not dragging the loss making positions behind.
Average relation of profit positions to the loss making positions is 30 to 1. It's 30 profit positions per 1 loss position. With the use of 10-15% of the deposit for market entry, "Shadow Camarilla” gains stable income starting from 100% annual. Maximal result during the tests is 573% in 2012 with the GBP/USD pair. With the drawdown not exceeding 11%, with the StopLoss values of 95 points and average profit of 35-75 points.
Full description of the software is available at soft4forex.com
Expected return, growth of balance in a year with reinvestment of the received profit.
Expected return, monthly account balance increase.
Trading instruments, currency pairs used for trading in the presented strategy.
Few trading options exist for the potential losses limitation.
StopLoss - closure of loss making position by predetermined level in percents from the deposit, or in points range. This option is considered the most safe in trading.
Hedging - partial of full overlap of loss making position on account of profits gained with closed positions, in any direction and any traded instrument.
Averaging/breakeven - additional averaging position opening, in the same direction as loss making position. Following closure of all positions taking part in averaging, in total profit. This method is considered one of the most risk involving, with constant growing load of the deposit, in case if the trend is moving against the opened positions.
Martingale - averaging positions opening with exponential lot volume increase, in relation to previous loss position opened in the same direction. This method is considered the most risk involving, but at the same time, one of the most effective as well, if there is no long term trends on the market, such periods known as "flat market". We don't recommend to disregard the risk management recommendations, not to exceed the coefficient to more than 1.5 - 2.
Lock - market position opening on set range in points or in percents from the deposit amount. Lock position is opened in opposite direction from the loss making position, with the same volume, or with the same lot exponent. Volume of the lock position depends of the algorithm of trading strategy, and a purpose of the lock position in this strategy. Lock position can be used to prevent the deposit from drawdowns with trend reversals with following withdrawal in profit.
- StopLoss in points
Trading account type - Brokers are offering different account types with different trading conditions. One of them is difference in provided market price feed.
Standard - 4 digits past comma, in format of 1,1234.
Extended - 5 digits past comma, in format of 1,12345.
When determining the range of price movement in points, in analytics, projections and discussions, four digits after comma is taken into account.
Example : price went from 1,20002 to 1,30007, it means that the price change for 100 points(one figure). If to say that the price is in this case went for 1005 points, it will be wrong. As the fifth digit is not a whole point, but one tenth of a point.
- Extended - 5 decimal places (1,12345).
- Standard - 4 decimal places (1.1234).
The minimum amount of security for safe trade with a minimum position volume of 0.01 lot for each instrument used in the trade.
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