Safety nets for the Vertuma FX Bot
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Our curent trading pairs From time to time we add or remove certain pairs depending on the market and global economic conditions. We evaluate our pairs based on safety and risk and generally only run pairs that have a low volatility profile. At the moment we have 7 active pairs running in our trading bot, which are the following:
Active Pairs:
EUR/AUD - (ACTIVE)
EUR/USD - (ACTIVE)
USD/CAD - (ACTIVE)
USD/CHF - (ACTIVE)
GBP/USD - (ACTIVE)
AUD/NZD - (ACTIVE)
CAD/CHF - (ACTIVE)
Offline Pairs:
EUR/GBP - (OFFLINE)
EUR/JPY - (OFFLINE)
USD/JPY - (OFFLINE)
USD/CAD - (OFFLINE)
NZD/CHF - (OFFLINE)
Safety net 1 - Manually closing losing trades Losing trades that are above 0.2 lot sizes (for a €10.000 account) will be closed manually if they are ~ 5 pips away from their target level. A situation like this will rarely occur, but can definitely still happen. We will manually close such a trade for every client at the same time. Which will usually result in small loss/profit or breakeven.
Safety net 2 - Non-trading account for unexpected economic events We ask from all our clients that they make a second non-trading account that will hold 15% of the starting trading balance of their trading account. That means on a €10.000 trading balance, your second account will have a balance of €1.500. When the drawdown reaches 50% we will instruct our clients to transfer the balance of their second account into their active trading account. This will ensure for a lot more breathing room, even in the worst-case scenarios. Reaching a drawdown of 50% on our algorithm is extremely hard to achieve but still within the realm of possibilities. This could be achieved by rare economic events that only occur once every 5 or 10 years, and we like to be prepared for such rare events.
Safety net 3 - No trading when drawdown reaches 50% This safety net will be coded into our algorithm and will activate automatically when the drawdown goes beyond 50%. So if the drawdown reaches 50% the bot will automatically stop opening new positions and will only work with the current open trades. When this mode is activated, it means that our bot doesn’t make any new trades at all, to prevent new additional layering trades that could only make it worse.
Safety net 4 - Different trading pools For every €1.000.000 trading pool we create an additional account where we are running the Vertuma FX Bot on. This means that trades will be a bit different in “position taking” as well as the timing of such trades. As we grow, our clients will be spread out between different trading pools and their trades in position, timing and drawdow will be different compared to others. We are doing this to stay under the radar from other big trading firms/organizations, as they usually have acces to a lot of order information and they could try to liquidate our trades if they become too big. For that reason we like to stay under the radar of such trading firms/organizations and try to avoid getting the attention from these types of entities.
Following economic news events Our team will constantly follow the news and stay up to date about big economic events or announcements. If we think that certain economics events can heavily effect the results of our bot, we will either temporary switch off the concering pair(s) or completly shut down the bot temporary, depending on the situation/news. By activily tracking these global economic updates we hope to offer a better and safer trading service to your clients and community.
Optional feature: Adjusting the risk exposure The risk exposure of our trading system is already really low but we do offer a feature which lets our clients customize the “risk exposure” settings. You can lower or increase your risk exposure with these settings. You can lower the risk with a maximal additional 30% or increase your risk with a maximal additional 50%. With this feature you can tailor the risks levels to your liking if you ever feel the need to do so. Increasing your risk means more profit and a higher drawdow and reducing the risk means less profit and an even lower drawdown. The standard settings of our trading system (algorithm) is already running on a low risk exposure level, but if you ever feel the need to alter the risk exposure level you can do so with this feature.