US Trading Robot – A month update


The objective of this robot is to make an average of 1% return every day. So if you’ve started with $2,000 you should be ending up with $30,000 by the end of the year. 1,400% return on investment! This is of course optimistic and doesn’t make sense. How is that even possible? Let’s dig in.

The advantages of having a robot are that you don’t have to do it yourself. First, the robot is quick, millisecond quick. Second, it doesn’t have emotion, which is very important in trading. It doesn’t feel bad when making bad trades, it doesn’t feel greedy when making profits. Finally, it can trade n number of stocks at a single time. So, imagine trading 100 stocks at a time; TSLA, AAPL, MSFT, etc.

That is the good part? But how is it going to be executed? Well after a month of trying a different strategy, tuning the hyperparameters, replacing different stocks and 3 am fixing the code. Here is my thought and setup so far.

1- Set up a reversal strategy with SMA, EMA and ATR confirmation. Most of the positions are being held for only a few minutes.
2- Use long and short positions, which now is a good time for shorting.
3- Set up a 1 to 5 take-profit/stop-loss ratio. So it will keep the position longer and forcing to make profit until the market really going down.
4- Setup a telegram notification system, so I can wake up and read the logging report.
5- This is written with Laravel PHP, so Node.js devotee can lose their mind.

I’ve reset the demo account for a few times after making major code changes. So this is the latest result starting from 7 May until 14 May.

The stocks that the bot is trading are
XLE, AMD, NET, MSFT, AAPL, CRWD, NFLX, QCOM, RIVN,
MU, QQQ, ADBE, NVDA, INTC, SPY, CSCO, PYPL, GOOGL,
TLSA, FB, TWTR, SQ, NIO, ARKK, IWM, MRNA, ABNB.

On average the bot is making 400 trades everyday (open and close position). All trades are done while I’m sleeping… zzz

Initial Capital – $1,000,000 (Demo account / fake money)

Date Equity Profit Changes High/Low Comment
7/5/22 $1,000,000 $0 0
10/5/22 $993,561.77 -$6438.23 -0.64%
11/5/22 $998,128.17 $4566.4 0.46%
12/5/22 $991,893.28 -$6235.17 0.63%
13/5/22 $1,001,997.46 $10,104.18 1.01%
14/5/22 $1,016,218.25 $14,220.79 1.4% $1,016,678.25/$997,547.62 Add shorting algorithm