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Please read our FAQ and Disclaimer before proceeding.

This file informs any copier about the potential drawdown and volatility in our algo’s performance:

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Key Takeaways:

The algorithm achieved a total net risk-reward (RR) of 802.52 in 234 trading days of 2024.

Daily Perspective (234 days)

• 65 days (27.8% of total days) resulted in losses.
• 19 days (8.1% of total days) had a daily drawdown of about 10% or slightly more.
• The average RR per day was 3.63.
• 65 days (27.8% of total days), the algorithmn hit its daily profit target by end of Tokyo session.
• 101 days (43.2% of total days), the algorithmn met its daily profit target by end of London session.
• There were also stretches of two or three consecutive losing days

Weekly Perspective (46 weeks)

• 7 weeks (15.2% of total weeks) ended with losses
• The best week achieved +51.24 RR
• The worst week was -12.62 RR
• The average week was 17.45 RR

Here is a list of loss-making week
Week of 12 Jan 2024: -12.36%
Week of 9 February 2024: -4.25%
Week of 8 Mar 2024: -5.06%
Week of 17 May 2024: -12.62%
Week of 28 Jun 2024: -10.59%
Week of 27 Sep 2024: -5.79%
Week of 8 Nov 2024: -10.76%

Count of Losing Days for 46 Weeks

# of Losing Days	Occurrences	Percentage
0	10	21.7%
1	13	28.3%
2	17	37.0%
3	6	13.0%
4	0	0.0%
Total	46

These results show why it’s important to stick with the algorithm, even during losing periods. Forex trading is a game of probabilities, and as long as the win rate stays positive, we should keep using it.

I don’t add money to my account midweek, especially after 2–3 winning days, since the chances of a losing day increase.

This also proves the value of running the algorithm all week long. There’s no clear pattern to predict which days will lose money, so skipping specific days isn’t a smart move. The only exceptions might be public holidays, when markets often move sideways and lack direction.

On 1 Dec 2024, we signed up to be a signal provider. We deposited a US $1,000 into our MT4 account and we ran our BluFx algo. This is a temporary account to get ourselves familiarized with IC Social.

Our performance fee was set at 0%. After leaving it for two weeks, there were 4 traders who started copying our trades.

IC Social sent us an email informing us the account sizes of our copiers:

Looking forward to our official “launch” in 2025.

Our algorithm is continually improving as we feed it more data. It’s becoming more reliable.

While it’s usable in its current form already, we enhanced it further and devised more entries. Our algo worked the way we wanted now, it’s becoming more disciplined, and it survived some brutal sideway market conditions.

August to late September 2024 (MT4 account, Raw spread)

Indicators:

• Modified version of moving averages
• Certain filters to detect the overall trends to filter out sideways markets

The setup:

• Patterns with high success rates were kept, and lower-performing ones discarded
• Runs on a server close to our brokers, using an MT4 setup
• Strict stop-loss, no dollar-cost averaging
• Trades across Asia, London, and New York sessions.
• Instead of aiming for higher RR of 2 – 3x, the same result can be achieved by having 3 successful trades of 1 RR.

We primarily developed this algorithm for our own use, we’re considering sharing it with a limited number of users. We’re excited to further refine this algorithm in the coming weeks.

Lots of brain power and computing resources required ahead!

Support Line / Demand Zone = price reaches these key level, it tends to bounce back UP

Resistance Line / Supply Zone = price reaches these key level, it tends to bounce back DOWN

What makes a valid support line / resistance line?

1. The key mistake is most traders look at 5M – 15M timeframe (TF). Those lines tend to be noisy and untested. The minimum you shoud look at it 1H timeframe.
2. Find a level with most rejection or contact points. When you have more than 3 contact points, the more valid it is.

3. To initiate a position, you need to ensure your SL is placed appropriately. You do not want a scenario where place comes, touches your SL and bounce back up fiercely. In the second image, there is a potential of 3 – 4 RR. I tend not to stretch my RR too much.

Extras:

1. There is no right or wrong on how you can draw resistance / support lines. Personally, I focus on the true bodies of the candles, this is where the battle is happening.
2. You would also like to see whether price rejections quickly or continues to stay around the region. If it’s the latter, the rejection is not fierce enough and it increased the odds of your trade idea not working out.

The key is to be patient and do not overtrade or take subpar trade ideas.

Almost one month of results is in… here are snippets of our baby funded account for demonstration:

For the period between April to May 2024, BluFX grew the account from $1,468.88 to $5,549.83 — representing a gain of $2,877.68.

Non-exhaustive list of enhancements to our algorithms (total >20)

• Enhanced our algorithm’s pattern recognition capabilities, allowing it to detect and act upon candlestick patterns with greater accuracy and timeliness.
• Multiple adjustments to our adaptive sell loss function. These changes are designed to safeguard profits and minimize losses.
• Improved our order flow to reduce slippage
• Fine-tuned our algorithm to avoid poor entry points during directionless market conditions. This adjustment minimizes the likelihood of unprofitable trades.
• Developed a comprehensive performance tracking dashboard to provide transparency and insights into algorithm performance.
• …. and others.

The work never stops!