Octane vs GBPUSD: Capitalizing on Drawdown Opportunities - Algorithmic Trading 4UAlgorithmic Trading 4U

Octane Wrestling GBPUSD

When I told my wife, “The bot is in drawdown.”, she got concerned. I let her know, “Without drawdown, you don’t make money. Drawdown means opportunity.” Fortunately, Octane is equipped to navigate those opportunities. While GBPUSD continuing to dive and the BUY positions are FAR AWAY from where the trade was entered, Octane is opening SELL trades. As the drop continues, Octane is still making money for the account. Hedging is a beautiful thing!

Even with drawdown in the mid-teens, I am not worried. Octane has handled worse conditions. As long as it continues to take advantage of the market conditions, I will watch the account grow. No doubt, if the drawdown reaches the high-teens, Octane will shift into equity protection mode.

As I check the bots activities on my phone, I try to hop inside the head of the algorithm(s). (It does have 8 algorithms.) I see the BUYS and the SELLS. As it juggles this forex pair, it is also juggling a series of AUDCAD (nearly 20). It also has a series of USDCAD trades exceeding 20. With these 3 forex pairs (mainly the GBPUSDs), it is little wonder the drawdown is over $20,000.

As the GBPUSD continues its downward trend, Octane has opened 3 trades where it is profiting from the downward move. I know it creates profit or reduces drawdown. Beyond that, I am glad I have a bot to manage this. Octane continues to be the most passive alternate investment in my portfolio.

I do keep kicking myself whenever I think of how I dumped Octane to chase the NURP bots. My reunion with Octane hasn’t all been stellar, but it has not been losses. Being hardheaded, I am just hopeful the summer losses instilled in me the caution I needed. When all is going well, you see no reason to put on the brakes. With a better than $5,000/month average, I won’t quickly be chasing any other bots that promise 10% monthly gain. Is caution a synonym of contentment?