What’s New in My Automated Day Trading Strategy? Here’s the Latest Update
Day Trade Dispatch #2
Hey folks!
As promised, here is my latest update about my automated trading journey.
Last week, I left the bot running, and it was performing well with around 5% net profit.
However, due to unusually high market volatility this week (the USA sold a significant amount of their reserve BTC), the bot entered trades that reversed after a few hours, and I ended the week with about a 5% loss.
It’s not much, and it was a good learning experience. I discovered one of the last improvements needed for the strategy.
I added a 1.5% stop loss when going long and a 1% stop loss when going short to reduce my drawdown.
This adjustment sacrifices about 4% of the projected profits but provides much better protection against those extra volatile movements.
Here are the projections with the new strategy:
Updated Strategy Performance Report for ETHUSDT with Optimized Strategy
Overview
This report provides a comprehensive analysis of the trading strategy performance based on the most recent backtest data for ETHUSDT with a newly optimized strategy, adjusted for the period from 24 June to 2 August 2024.
The strategy is evaluated based on key performance metrics including win rate, profit factor, max drawdown, and capital growth projections with periodic contributions and compounded weekly gains.
Strategy Details for ETHUSDT
- Net Profit: 47.92 USDT over 5 weeks
- Gross Profit: 116.03 USDT
- Gross Loss: 68.11 USDT
- Max Drawdown: 4.17%
- Profit Factor: 1.704
- Percent Profitable: 68.45%
- Number of Trades: 187
- Average Winning Trade: 0.91 USDT
- Average Losing Trade: 1.15 USDT
Capital Growth Projections
The initial capital for the strategy is set at $155 for ETHUSDT. The strategy’s capital is updated weekly based on the net gains of the week, with compounded gains, and additional contributions are made periodically:
- Monthly Contributions: $50 monthly.
- Special Contributions: $100 every 26 and 52 weeks instead of the regular $50.
Weekly Return Rate Calculation for ETHUSDT
- Weekly Average Net Profit: 9.584 USDT
- Weekly Return Rate: 6.183%
- Adjusted Weekly Return Rate (after fees): 6.178%
Projections
The strategy aims to grow the capital to $2 million. The capital growth projection, considering the updated strategy details, compounded weekly gains, adjusted weekly returns, fees, and additional capital contributions, is outlined below:
- Target Amount: $2 million
- Duration: Approximately 145 weeks to reach $2 million.
- Weekly Capital Projections (first 10 weeks):
- Week 0: $155.00
- Week 1: $164.58
- Week 2: $174.70
- Week 3: $185.40
- Week 4: $244.94 (includes $100 addition)
- Week 5: $260.07
- Week 6: $276.06
- Week 7: $292.97
- Week 8: $370.95
- Week 9: $393.86
Graphical Representation
The graph visualizes the capital growth trajectory towards $2 million over approximately 145 weeks, with monthly and special contributions marked.
Summary
- The strategy starts with an initial capital of $155 and aims to reach $2 million in approximately 145 weeks.
- Weekly return rates are adjusted to account for trader and maker fees.
- Regular contributions of $50 monthly and $100 every 26 and 52 weeks significantly boost the capital growth trajectory.
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