Our previous articles dealt with the Sniping Method - a unique TS designed in the Futures Trading and Stock Exchange Faculty at the Masterforex-V Academy. It allows successfully trading any instrument, be it stocks, futures or even the spot forex market.
The method is based on a set of extremely clear rules built on tested and adjusted algorithms. When kept, they can produce consistent profits at all phases of the market - both the growth and the decline.
The flexibility of the TS is another advantage: if they want, any trader that understands what the system is about can use it as basis for their own trading systems and adapt it to their preferences.
Recently we proved by experiment that these algorithms achieve good results when trading RTS futures. This allows Sniping Method to be used not only in US markets, but also in Russian and Asian stock markets.
As rules are extremely clear and rule out any ambiguous interpretation of signals we have written an automated trading system (ATS) - SnipingBot. Its results exceeded our expectations by providing 252% of net profits in two months of independent trading in a rather complex market (July-August 2011)...
Its performance is impressive. Of course, we tested the TS on a small account first, trading currencies and CFDs for the RTS futures, metals, sugar, S&P500 etc. Such diversification helped smooth out the balance curve and avoid a steep drawdown because a number of traded instruments move in opposite directions (for example, gold grows well when global stock indexes decline).
The next step will be to connect the robot directly to stock and futures markets in a more sizeable account. We expect such robots to operate as part of a fund in the future.
Does this involve a complete refusal to trade manually? Of course, not - we still trade manually, using proprietary approaches and algorithms. Based on some observations, fully automated systems perform best of all on futures markets due to their high liquidity and round-the-clock operation. Stocks, on the contrary, are still more suitable for manual trading, it being flexible and having full control of the situation.
Use of a set of proprietary indicators and clear algorithms enables putting a short stop-loss to make profits both in intraday and medium-term intervals. Here's a recent sample trade, TNE, where sniping method algorithms were used:
Profit: +22 cents with a risk of 7 cents, the risk-to-reward ratio is 1/3!!!
It is obvious from the above example (one of many) that the system went into the positive with a good profit-loss ratio. This case involved an algorithm of a rebound from a sloping channel boundary (combined with working along the trend and given clear signs of a large buyer in this share).
Many people that come to the stock market after the forex or futures point out that it is easier to trade stocks because of lower risks and better smoothness of the traded instrument. Most importantly, it is learning to select the 'right' stocks. This is an example of a stock selected by one of our students: it moved nicely within a sloping channel from open to close:
Of course, you will always be positive if you work selectively, only with such stocks. I would also like to say that no single currency pair or futures can offer such smooth and clean movements.
And the main thing that this trading method is based on is:
1) one should trade only the instruments for which the method has been developed. There are certain selection criteria in place.
2) one should keep to the fundamental principle of trading - 'cut your losses and let your profits run' - in the very interpretation of risk management rules when it really works.
3) one cannot be in the market all the time. Sometimes it is better to 'sit on the fence during the time of trouble', when the market meets certain criteria.
You can see further details of the fundamental principles of sniping in a short video
