As Dalio and I get acquainted, I continue to be impressed. Being paranoid by nature, I wonder if I have done something within the settings to make the bot work too hard. I am not certain, but maybe I did…
My problem, I believe, is at this setting. The “Lot Size Type” has two settings: “Fixed Lot Size” and “Auto Lot Size”. With an account of $100,000 or more, “Auto Lot Size” is an option. But, this yielded overly large lot sizes.
What this chart shows:
- Not all of my $100,000 arrived at the same time. I had fixed lot settings of 0.04 then. The red trades indicate this.
- The blue trades were trades placed when I was still using “fixed lot settings” and the full $100,000 was in the account.
- The rest of the orders took place after I “thought” I understood how “auto lot sizing” worked. Based on the trades entered while on AUTO, I don’t think I did.
The settings for this bot are 0.01 per $10,000. Based on this chart, I am pretty sure I have the settings correct. Ideally, the auto setting will automatically boost the lot size up 0.01 every time the account increases by $10,000. (i.e. When the account grows to $110,000, the “Sell Next Lot” should grow to 0.11.)
What did all of this accomplish?
- It may have cost me some gains. If the market does things the bot is equipped to easily navigate, I could make more by upping the lot sizes. But, if the market gets really crazy (think “black swan”), I will be in a much better place.
- If my conservative lot settings are set up correctly, then I don’t have to touch the bot at all. I only have to admire its work. However, if the past is any indication of the future, the bots have another plan.
