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CODING TRADING AUTOMATIONS | July 17 | Michele Rossi — Transcript

by FunderPro · 4,102 words · 773 segments · language en · Watch on YouTube

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  1. 0:04Welcome. Welcome back everyone.
  2. 0:10Glad to be here. Good morning everyone
  3. 0:12and welcome. Today we are starting a new
  4. 0:16four-part live series about trading
  5. 0:19automation, expert advisors, and trading
  6. 0:22bots.
  7. 0:48This series is proudly sponsored by
  8. 0:50Funded Prop and throughout this session
  9. 0:52we will use the Funded Prop environment
  10. 0:54as a practical reference. So, the goal
  11. 0:57is not to simply to show you how to
  12. 1:00automate a strategy. The goal is to
  13. 1:02understand how to build an automated
  14. 1:05system that is
  15. 1:07um logical, measurable, and compatible
  16. 1:11with the rules of a prop firm. And
  17. 1:13before we begin, let me remind you of
  18. 1:15something important. During today's live
  19. 1:18you can use the code live to receive 15%
  20. 1:21off Funded Prop challenges, instant
  21. 1:23accounts, or or futures account. I will
  22. 1:26mention it again later, but for now
  23. 1:28let's focus on the real subject of
  24. 1:31today's session. Why coding a strategy
  25. 1:35can completely
  26. 1:38change the way you trade.
  27. 1:41Let me start with a question.
  28. 1:43Have you ever watched a video where
  29. 1:45someone presents an incredible trading
  30. 1:47strategy?
  31. 1:48Maybe they show you a few perfect
  32. 1:51trades, they draw some lines on the
  33. 1:54chart, they explain the entry with
  34. 1:57complete
  35. 1:58um
  36. 1:59they go uh for uh
  37. 2:03a a a new a new rule and then an after
  38. 2:06rule and then another one.
  39. 2:09And then they show you a back test and
  40. 2:13say, "Look at the results. This strategy
  41. 2:17works."
  42. 2:18After that, they tell you to back test
  43. 2:20it manually. So, you start scrolling
  44. 2:23through charts. Okay? You do like this,
  45. 2:26no?
  46. 2:27You go on TradingView, you select your
  47. 2:29chart, your time frame, you
  48. 2:34you go back
  49. 2:36in
  50. 2:36and then you start doing like this,
  51. 2:40right?
  52. 2:41You These are This is the the
  53. 2:45sell. Then you go and you place your
  54. 2:47sell and so on and so on and so on.
  55. 2:52Well, good.
  56. 2:54Um
  57. 2:55After that,
  58. 2:57you start
  59. 3:00recapping and after hour
  60. 3:04and hours and hours of back test because
  61. 3:06it requires time, 10 hours
  62. 3:09become 50, then you mark entries,
  63. 3:14exits, stop losses,
  64. 3:16and targets. Eventually, you have
  65. 3:19hundreds of examples and the results
  66. 3:23might look
  67. 3:25really really good.
  68. 3:28It looked promising.
  69. 3:29You begin to believe that you have found
  70. 3:33something special.
  71. 3:35Then you take the strategy live and
  72. 3:37suddenly the results
  73. 3:40that looks very good on the equity curve
  74. 3:45of the back test
  75. 3:47starts to look something like this,
  76. 3:53right? You happens
  77. 3:58the results are completely different.
  78. 4:01The market seems slower. The entries do
  79. 4:04not look as clear.
  80. 4:06You hesitate. You enter too late. You
  81. 4:09move with a stop loss. You close the
  82. 4:11winner too soon. You skip a trade,
  83. 4:13maybe, because the previous one was a
  84. 4:15loss.
  85. 4:18And
  86. 4:19at the end of the month, you realize
  87. 4:21that the strategy you tested is not the
  88. 4:24same strategy you traded live.
  89. 4:28The back test was one system. Your
  90. 4:31emotions created another one.
  91. 4:34Then, usually, the guru
  92. 4:38appears with the next big idea. The next
  93. 4:42big great idea. This indicator that
  94. 4:44makes the strategy work.
  95. 4:47This is the indicator. So, I created the
  96. 4:49indicator for TradingView. So, you buy
  97. 4:51the indicator, you buy the signal, you
  98. 4:54join the private community, maybe you
  99. 4:56buy another course.
  100. 4:58But the real problem has not changed.
  101. 5:01You still do not know whether the
  102. 5:03strategy has a genuine edge.
  103. 5:07You still do not know
  104. 5:10which rules are essential.
  105. 5:13You still do not know what happens when
  106. 5:15market conditions change.
  107. 5:17And you still depend on your
  108. 5:19interpretation
  109. 5:21in real time.
  110. 5:22This is where automation becomes
  111. 5:26powerful.
  112. 5:30Not because it's magic. Not because a
  113. 5:32bot can predict market, and definitely
  114. 5:34not because a bot can guarantee profit.
  115. 5:38A bot simply follows instruction
  116. 5:43much better than we can do.
  117. 5:46If the instructions are poor, then the
  118. 5:49bot will execute poor instructions
  119. 5:52faster and more consistently than a
  120. 5:55human trader.
  121. 5:56But, if the rules are clear, tested, and
  122. 6:00properly designed,
  123. 6:03automation can help us remove
  124. 6:05unnecessary discretion, enforce risk
  125. 6:09management, and evaluate a strategy with
  126. 6:12much greater consistency.
  127. 6:15That is the real purpose of this series.
  128. 6:19We are going to start with a trading
  129. 6:21idea, transform it into objective rules,
  130. 6:25test it using TradingView and Pine
  131. 6:28Script,
  132. 6:29analyze the results, adapt the risk to a
  133. 6:32prop firm environment, and eventually
  134. 6:35turn the logic into a working expert
  135. 6:39advisor.
  136. 6:40Whether you're going to be trading with
  137. 6:42a
  138. 6:43um
  139. 6:45CFD account or a future account,
  140. 6:49it does not matter.
  141. 6:52Just change the
  142. 6:55the rules.
  143. 6:58The rules can change,
  144. 7:00the environment can change,
  145. 7:03but the the purpose
  146. 7:06of this
  147. 7:07is unchanged.
  148. 7:10And because this series is sponsored by
  149. 7:13Funded Prop, we will use Funded Prop
  150. 7:15Classic Two-Phase Challenge as our main
  151. 7:19example. This is what I like most.
  152. 7:21Because to me,
  153. 7:23Funded Prop Classic Two-Phase Challenge
  154. 7:28have the best ROI
  155. 7:31ever. Let me show it to you.
  156. 7:38If you go to Funded Prop website,
  157. 7:41you can change the language from here,
  158. 7:42of course.
  159. 7:44And you scroll down.
  160. 7:46This is what I like, classic two
  161. 7:51phase.
  162. 7:53This one, right here.
  163. 7:57You have
  164. 7:59a
  165. 8:00uh
  166. 8:02right here, like the challenges. You
  167. 8:04have a classic, let's say you got a 100k
  168. 8:08challenge.
  169. 8:09You have the phase one, where you have a
  170. 8:12profit target of 10%, you have a maximum
  171. 8:15drawdown of 5%, that's great. You have
  172. 8:19daily daily drawdown. You have a max
  173. 8:21drawdown
  174. 8:22overall 10%.
  175. 8:25Crazy. Crazy good. And
  176. 8:27look,
  177. 8:29you have unlimited duration of the
  178. 8:31challenge.
  179. 8:33That is your edge.
  180. 8:36Probably they will cut this part. They
  181. 8:39don't want you to know this.
  182. 8:41It's unlimited. You don't have to rush.
  183. 8:45Okay? For the pro, don't cut this down.
  184. 8:47This is very important to help people.
  185. 8:50Then you have a second phase, you need
  186. 8:53to reach a 5%, which is
  187. 8:57quite good.
  188. 8:58Still have a 10% of maximum drawdown and
  189. 9:01unlimited time.
  190. 9:04Then you go live.
  191. 9:06And what you make is yours.
  192. 9:0980/20 split profit, 80 goes to you.
  193. 9:15Pretty straightforward. This to me, for
  194. 9:18automatic trading, for bot trading,
  195. 9:25have the best
  196. 9:27ROI, return of investment.
  197. 9:32You buy this challenge,
  198. 9:36you spend with my code, you have 15%
  199. 9:39off.
  200. 9:43100K classic
  201. 9:46$500, use the code live, you get 15%
  202. 9:50off. It's $458.
  203. 9:53In euro is something about 400 euros.
  204. 9:58And you have $100,000
  205. 10:01to play with.
  206. 10:04One trader at a time, no more than 1%
  207. 10:06risk per trade. You find a good
  208. 10:08strategy, good back test, and you're
  209. 10:10good to go.
  210. 10:12Let's go back to our thing.
  211. 10:15Um
  212. 10:19I really like Let me tell you why I
  213. 10:21really like the classic challenge.
  214. 10:24For this project,
  215. 10:26I really like this type of environment
  216. 10:30because the rules, as you can see, are
  217. 10:33relatively clear and the structure is
  218. 10:36easy to understand.
  219. 10:39So, again, 10%
  220. 10:42drawdown and 10% target in phase one, 5%
  221. 10:45target in phase two. It has 5% max
  222. 10:48maximum daily drawdown, not a problem.
  223. 10:51We're not going to go more than one
  224. 10:52trade per day
  225. 10:54and no consistency rule. That makes it
  226. 10:57an interesting environment for traders
  227. 11:00who want to develop a structured
  228. 11:02approach without having to build their
  229. 11:05entire plan around a complicated
  230. 11:08consistency calculation. Of course,
  231. 11:10rules can change and every trader must
  232. 11:13check the exact conditions of their
  233. 11:15individual account before trading. The
  234. 11:17information shown inside the account and
  235. 11:20the official Founder Pro terms always
  236. 11:23take priority. It's very important for
  237. 11:26you to read it. But, the important point
  238. 11:28is this, Founder Pro allows the use of
  239. 11:31EAs and trading bots when they are used
  240. 11:35fairly. When the trader owns the system
  241. 11:39and when the automation does not exploit
  242. 11:42latency, platform errors, delayed
  243. 11:45prices, or other unfair advantages.
  244. 11:49Okay?
  245. 11:52This is it.
  246. 11:53You can think this is not good. You can
  247. 11:56think it's good. If you don't think it's
  248. 12:00good,
  249. 12:01grab your personal $100,000
  250. 12:05and go trade with that. You can do
  251. 12:07whatever you want. But for just $400,
  252. 12:11you can have 100k to play with. You have
  253. 12:13to follow their rules. Their money,
  254. 12:16their rules. Okay? Keep that in mind,
  255. 12:19always.
  256. 12:21That is exactly the type of automation
  257. 12:23we are discussing. We are not talking
  258. 12:26about exploiting the platform. We are
  259. 12:28not talking about trying to trick the
  260. 12:30execution
  261. 12:33copying somebody else's trade or buying
  262. 12:35a black box system that you do not
  263. 12:37understand. We are talking about taking
  264. 12:41your own logic,
  265. 12:43testing it properly, and using
  266. 12:45automation to execute it in a
  267. 12:48disciplined way. Let me ask you
  268. 12:51something.
  269. 12:52When you trade, do you have your rules
  270. 12:54written down somewhere? Do you have a
  271. 12:56piece of paper with your rules?
  272. 12:59Or do you normally look at the chart and
  273. 13:01decide in real time whether something
  274. 13:03feels like a good opportunity?
  275. 13:06Write rules in the chat if your strategy
  276. 13:10is already written down. Let me see.
  277. 13:14And write chart if you mainly make your
  278. 13:18decisions by
  279. 13:20looking at what is happening in the
  280. 13:22moment. Let me see.
  281. 13:26Rules.
  282. 13:27Rules.
  283. 13:28Chart.
  284. 13:30Okay.
  285. 13:31Chart, chart, chart, rules, rules. Okay,
  286. 13:34mixed.
  287. 13:35There is no right or wrong answer.
  288. 13:39Most traders start with the chart.
  289. 13:42This is completely normal. The problem
  290. 13:45begins when the
  291. 13:47when we confuse an idea with a complete
  292. 13:50system. For example, somebody may say
  293. 13:55um I buy when the market is strong.
  294. 13:58That makes sense to another human being.
  295. 14:02But a computer has no idea what strong
  296. 14:05means.
  297. 14:07Does strength mean that the candle is
  298. 14:10large?
  299. 14:12Does it mean that price is above a
  300. 14:14moving average? Does it mean that the
  301. 14:16market has
  302. 14:18a broken has broken a previous high?
  303. 14:22Does it mean that volume is increasing?
  304. 14:23Does it mean that the market has moved
  305. 14:25in a certain number of points?
  306. 14:28Before we write any code, we need to
  307. 14:30define the answer.
  308. 14:33This is the first major transformation
  309. 14:37in systematic trading.
  310. 14:39We take an interpretation and turn it
  311. 14:42into a condition.
  312. 14:44We take a feeling and turn it into a
  313. 14:47measurement. We take a story
  314. 14:50and we turn it into a sequence of
  315. 14:53instructions.
  316. 14:55That is why coding a strategy is so
  317. 15:00valuable.
  318. 15:01Even if you never intend to use the
  319. 15:05final bot. Let me drink a little bit of
  320. 15:08water.
  321. 15:09Um let's check on your questions.
  322. 15:20Nice.
  323. 15:22Great.
  324. 15:25Beautiful.
  325. 15:30Back to our stuff.
  326. 15:32Um
  327. 15:38So,
  328. 15:45the process of
  329. 15:46coding
  330. 15:48a strategy forces you to be honest.
  331. 15:52Exactly when do you enter?
  332. 15:55Where do you place the stop loss?
  333. 15:57Where do you take profit?
  334. 16:00What happened What happens if the signal
  335. 16:03appears
  336. 16:04while another trade is open?
  337. 16:07What if
  338. 16:08the spread becomes too large?
  339. 16:11What happens if you have already lost
  340. 16:14money that day?
  341. 16:17What happens if the market reaches the
  342. 16:20target, but the the candle has not
  343. 16:22closed?
  344. 16:23What happens if important economic news
  345. 16:27is about to be released?
  346. 16:29A discretionary trader may answer these
  347. 16:33questions differently every time.
  348. 16:37A coded system cannot.
  349. 16:40The computer needs a precise answer.
  350. 16:45This is also where
  351. 16:47we need to understand discretion.
  352. 16:51What is discretion? Discretion is the
  353. 16:53part of a decision that changes
  354. 16:57according to interpretation. I'm reading
  355. 16:59right now.
  356. 17:03Definition of discretion.
  357. 17:07Part of a decision that changes
  358. 17:09according to interpretation,
  359. 17:12emotion, or personal judgment. Sometimes
  360. 17:15traders
  361. 17:16call it experience. Sometimes they call
  362. 17:18it intuition. Sometimes they say they
  363. 17:21never
  364. 17:23I mean they are reading the market. And
  365. 17:25sometimes let's be honest.
  366. 17:27It is fear
  367. 17:30and excitement wearing a professional
  368. 17:33suit.
  369. 17:35Those butterflies in your stomach may
  370. 17:37feel very important, but they cannot be
  371. 17:41reliably
  372. 17:43programmed.
  373. 17:44Do you really want to base the survival
  374. 17:48of your capital of a prop firm account
  375. 17:51on whether you feel confident today?
  376. 17:57Ask this to yourself. Do you want to
  377. 18:00risk to increase
  378. 18:04Sorry, to increase your risk
  379. 18:06because you had three winning trades?
  380. 18:09Do you want to skip a valid setup
  381. 18:11because the last trade was a loss?
  382. 18:14Or because you just don't feel
  383. 18:16confident?
  384. 18:19If you can explain your strategy
  385. 18:22clearly,
  386. 18:23then
  387. 18:25you can start reducing this question. If
  388. 18:28you can write it down, you can challenge
  389. 18:31it. If you can measure it, you can test
  390. 18:34it. If you can test it, you can improve
  391. 18:35it.
  392. 18:36And if the rules remain stable, you can
  393. 18:40automate them.
  394. 18:42Now, the first stage is not programming.
  395. 18:45The first stage is documentation.
  396. 18:48We need to explain what market
  397. 18:52we are trading, which instrument we are
  398. 18:55using, which time frame we are using,
  399. 18:58and during which hours the strategy is
  400. 19:02allowed to operate.
  401. 19:04We need to define the entry condition,
  402. 19:07the stop loss,
  403. 19:09the profit target, and the maximum risk.
  404. 19:14Right?
  405. 19:16We also need to define
  406. 19:18what the strategy
  407. 19:21does not do.
  408. 19:23Does it trades
  409. 19:25during
  410. 19:27news?
  411. 19:35Does it hold position overnight?
  412. 19:38Does it hold position over the weekend?
  413. 19:40Does it open multiple trades in the same
  414. 19:43direction?
  415. 19:45Does it trade when the spread is
  416. 19:48unusually wide?
  417. 19:51These questions are especially important
  418. 19:54when working with Funded Pro.
  419. 19:56During the challenge phases, Funded Pro
  420. 19:59currently allows new trading.
  421. 20:02News trading, sorry. However, on Funded
  422. 20:05account, news trading and news holding
  423. 20:07require the swing add-on.
  424. 20:10Weekend holding also require the swing
  425. 20:13add-on. That means the bot must know
  426. 20:17which account stage it is operating in.
  427. 20:22A strategy that behaves correctly
  428. 20:25during a challenge may violate the
  429. 20:27Funded account conditions if it
  430. 20:29continues to hold position through the
  431. 20:31restricted news period or over the
  432. 20:34weekend without the appropriate add-on.
  433. 20:38This is why we do not design a bot first
  434. 20:41and check the rules later. We design the
  435. 20:44bot with the rules already inside their
  436. 20:46key structure.
  437. 20:48The same principle applies to drawdown.
  438. 20:51If the classic account has a 5% daily
  439. 20:54drawdown and a 10% overall drawdown, the
  440. 20:57bot should not be designed to walk
  441. 21:00constantly on the edge of those limits.
  442. 21:04The objective is not to use every
  443. 21:06available percentage. The objective is
  444. 21:09to
  445. 21:10build a system that can survive normal
  446. 21:13losing periods.
  447. 21:15If the strategy needs to
  448. 21:18risk
  449. 21:195% in one trade to produce its results,
  450. 21:23it is probably not suitable for a
  451. 21:26disciplined prop firm approach.
  452. 21:28A professional system should understand
  453. 21:31how much risk is acceptable before it
  454. 21:34thinks about how much profit is
  455. 21:36possible. Let's see a simple example.
  456. 21:40So,
  457. 21:42imagine that we want to create a trend
  458. 21:45following strategy
  459. 21:48that buying on retracements.
  460. 21:53We say, "I want to buy when the market
  461. 21:56is moving upwards."
  462. 22:00Right here.
  463. 22:02That is the idea. Now, we need to
  464. 22:05translate it.
  465. 22:06Maybe the price must be above the 200
  466. 22:13EMA.
  467. 22:19200 period EMA. Maybe the moving average
  468. 22:23must be pointing upward.
  469. 22:29Maybe price must break the highest point
  470. 22:32of the previous 20 candles.
  471. 22:38So, we buy right here.
  472. 22:45Maybe the trade can only be opened
  473. 22:49during a specific session
  474. 22:53like the let's say New York session.
  475. 23:05>> Maybe the stop loss is placed at one and
  476. 23:08a half time the average true range.
  477. 23:20Right?
  478. 23:22ATR
  479. 23:24We place our stop loss right here.
  480. 23:37Maybe the target, the TP
  481. 23:41is
  482. 23:42um
  483. 23:44two times the initial risk. So, we have
  484. 23:46a
  485. 23:48one to two
  486. 23:49risk to reward.
  487. 23:51Maybe we have a 1.1. Maybe we have a one
  488. 23:56to 1.5.
  489. 24:02Now, we have something that can be
  490. 24:05tested.
  491. 24:07Notice that we did not necessarily make
  492. 24:10the strategy more complicated. We made
  493. 24:13the language more precise.
  494. 24:16This is what Pine Script allows us to do
  495. 24:20inside TradingView.
  496. 24:25You have the Pine Script
  497. 24:26and you can code it. It's quite simple
  498. 24:29today
  499. 24:30that you can use
  500. 24:33ChatGPT or Claude or any AI system
  501. 24:37to
  502. 24:38encode your strategy. You can talk about
  503. 24:41the strategy in plain English
  504. 24:44or Italian or whatever language you use
  505. 24:48and he's going to be created a so set of
  506. 24:52rules
  507. 24:53and these set of rules are going to be
  508. 24:55coded into Pine, which is the the first
  509. 24:59language that I advise everybody to
  510. 25:01start with.
  511. 25:03This is not the best one. This is not
  512. 25:05what institutions are using, but this is
  513. 25:08a starting point.
  514. 25:11Okay?
  515. 25:13Of course, we should not treat
  516. 25:15TradingView backtest as a perfect
  517. 25:18representation of live trading.
  518. 25:20There are limitations.
  519. 25:23Lot of.
  520. 25:26Historical data may not perfectly
  521. 25:28reproduce the broker's feed. Slippage
  522. 25:31can change, spread can widen, liquidity
  523. 25:33can disappear.
  524. 25:35Uh the order may be filled at a
  525. 25:37different price than expected, but Pine
  526. 25:39Script is extremely useful for research.
  527. 25:43It allows us to test the same rules
  528. 25:44across thousands of historical candles.
  529. 25:48It allows us to change one parameters at
  530. 25:51a at a time. It allows us to see the
  531. 25:54equity
  532. 25:55the drawdown, the number of trades, and
  533. 25:58the behavior of the strategy during
  534. 26:01different market conditions. Like, for
  535. 26:03example, I have this strategy that I
  536. 26:05coded, and we're we're going to talk and
  537. 26:09and I'll walk you through this strategy
  538. 26:11very soon.
  539. 26:13And right here, you can see
  540. 26:16how it performed
  541. 26:19in the past. You have the total profit
  542. 26:22and loss. This is a period of time. This
  543. 26:24is
  544. 26:25April 5th,
  545. 26:282026
  546. 26:29to July 17th, 2026. So, it's about 3
  547. 26:33months period. It performed with a 5%
  548. 26:37profit, maximum drawdown 2.5%, 6% win
  549. 26:40rate, and a profit factor of 1.3. And it
  550. 26:44also
  551. 26:45take into consideration, let me see if
  552. 26:47it's properly
  553. 26:49uh
  554. 26:50Uh, okay, maximum bar detailization.
  555. 26:56Okay, we can we can add the commission
  556. 26:58like 0.25
  557. 27:01per contract.
  558. 27:02We can add couple of points of slippage.
  559. 27:05We can add
  560. 27:13lot of slippage, a little bit of
  561. 27:15and and you can see you can see how it
  562. 27:17change. It went from 5% to 3%.
  563. 27:211.3 profit factor to 1.2.
  564. 27:24And you have a lot of statistics down
  565. 27:26below and as well as a list of all the
  566. 27:31trades taken.
  567. 27:32And you can go back and say, "Did this
  568. 27:35strategy
  569. 27:36would this strategy have passed a
  570. 27:39challenge account, yes or no?"
  571. 27:41This is the first step. So, that's why
  572. 27:44this is very important to start from
  573. 27:46here.
  574. 27:48Um
  575. 27:51So,
  576. 27:52that is already a huge improvement
  577. 27:55compared with manually scrolling through
  578. 27:58charts for hundreds of hours.
  579. 28:01Manual backtesting can help you
  580. 28:03understand individual examples.
  581. 28:06Automated backtesting helps you evaluate
  582. 28:09the system consistently.
  583. 28:11The danger comes when we start treating
  584. 28:14the backtest as a promise.
  585. 28:17A backtest is not proof that the future
  586. 28:20will look the same.
  587. 28:22It is evidence. And evidence must be
  588. 28:26questioned.
  589. 28:28If I keep changing the parameters until
  590. 28:31the results look perfect, I may be um I
  591. 28:36may simply be over fitting the strategy
  592. 28:41to the past.
  593. 28:43I can create a system with a beautiful
  594. 28:46perfect historical results that fails
  595. 28:50as soon as the market changes.
  596. 28:53We will talk about overfitting in
  597. 28:55another video or join my YouTube channel
  598. 28:58Michele Rosso official and I've already
  599. 29:01talked about overfitting in depth.
  600. 29:05So the objective is not to find a
  601. 29:07perfect moving average.
  602. 29:11The objective is to understand the
  603. 29:13behavior of the system.
  604. 29:16How often does it trade? How large are
  605. 29:19the average wins and losses? How many
  606. 29:22losing trades can appear in a row?
  607. 29:25What is the maximum historical drawdown?
  608. 29:28Does the system work only during one
  609. 29:31specific year? Does it depend on one
  610. 29:34market event? Does it still behave
  611. 29:37reasonably when we include costs and
  612. 29:41slippage as I showed you?
  613. 29:43These questions are much more important
  614. 29:46than simply asking whether the backtest
  615. 29:49made money.
  616. 29:51A strategy can produces a 30% return but
  617. 29:55suffer a 25% drawdown.
  618. 29:59May be much less useful than a strategy
  619. 30:02that produces a smaller return with a
  620. 30:04more controlled equity curve.
  621. 30:07Especially in a prop firm challenge,
  622. 30:10survival comes before acceleration.
  623. 30:14Funder Pro gives us an environment where
  624. 30:16automation can be used as part of a
  625. 30:18structured process. The bot can help us
  626. 30:21respect the risk limits, avoid impulsive
  627. 30:25decisions, and execute the same logic
  628. 30:28across every valid setup. But the
  629. 30:31advantage is not that the bot can ignore
  630. 30:34the rules. The advantage is that the bot
  631. 30:37can help us apply them consistently.
  632. 30:41This is
  633. 30:43That is a very different way of
  634. 30:46thinking.
  635. 30:47The bot should know how much to risk. It
  636. 30:51should know when to stop trading for the
  637. 30:53day. It should know when the spread is
  638. 30:56too high. It should know whether a
  639. 30:58position is allowed to remain open.
  640. 31:02Whether a news event is approaching.
  641. 31:04What to do if an order is rejected.
  642. 31:07Where many people make a mistake is
  643. 31:10exactly this. They focus on the entry
  644. 31:13signal because the entry looks exciting.
  645. 31:16But, the entry is only one small part of
  646. 31:19the overall system.
  647. 31:21Remember, keep in mind execution,
  648. 31:24position position sizing,
  649. 31:27um
  650. 31:28risk limits, trade management, and
  651. 31:31monitoring
  652. 31:32are just as important as the entry.
  653. 31:37A working bot
  654. 31:41is not simply a green arrow on a chart.
  655. 31:46A working bot is a complete process.
  656. 31:51Stay with me. Bear with me. We're
  657. 31:54talking
  658. 31:56theory. We're going to look at it in
  659. 31:58practical, but we need to understand
  660. 32:01first
  661. 32:03what the bot does. It receives data. It
  662. 32:07identifies a valid condition. It
  663. 32:10calculates the position size
  664. 32:12automatically. It sends the order. It
  665. 32:15set the stop loss and the target. It
  666. 32:17manages the opening range, the open
  667. 32:20trade, sorry. It record the results, and
  668. 32:23it knows when not to trade.
  669. 32:27And in the next live
  670. 32:30next
  671. 32:31Friday, so next week on Friday we go
  672. 32:34live Monday morning. We go for a
  673. 32:38fundamental and preparation of the week.
  674. 32:41On Wednesday,
  675. 32:43we go for an update on the fundamentals
  676. 32:46intermarket and sentiment analysis. And
  677. 32:48if we find a um
  678. 32:52a a good
  679. 32:54uh entry, of course, we trade live. And
  680. 32:56on Friday, we talk about how to
  681. 33:01start from an idea,
  682. 33:03develop the idea, code the idea,
  683. 33:06optimize the idea, validate the idea,
  684. 33:10and
  685. 33:11create a working strategy and a working
  686. 33:14bot, and then deploy live on a prop firm
  687. 33:18account.
  688. 33:21Okay?
  689. 33:24So,
  690. 33:25we will take a strategy idea,
  691. 33:30and we break it down into objective
  692. 33:34rules.
  693. 33:35We will look at what can be
  694. 33:40coded
  695. 33:49and what is
  696. 33:51still discretionary. And the reason that
  697. 33:54session will be very practical. So, I
  698. 33:57want you to arrive with one strategy
  699. 33:59idea in mind. I already have mine, but I
  700. 34:03want to
  701. 34:04hear and know about you what you want to
  702. 34:06make. We're going to do it together.
  703. 34:08It could be based on breakouts, moving
  704. 34:10averages, market structure, support and
  705. 34:12resistance, liquidity, momentum,
  706. 34:14whatever.
  707. 34:16ICT concept, whatever you like. But you
  708. 34:19must be ready to answer one question.
  709. 34:23What exactly must happen before your
  710. 34:27strategy is allowed to enter a trade?
  711. 34:31That is where the real process begin.
  712. 34:35In the third live, so
  713. 34:38the third week, this is the first
  714. 34:41we talk about the second, I'm talking
  715. 34:42about the third, we will test the first
  716. 34:46version and analyze whether the results
  717. 34:49are robust or simply attractive. And in
  718. 34:53the final live, so the fourth
  719. 34:56Friday live, I will show you the
  720. 34:58complete bot, how it operates and how
  721. 35:01the parameters can be adapted to your
  722. 35:05own trading plan.
  723. 35:07The bot will be
  724. 35:09um
  725. 35:10shown to you guys.
  726. 35:13Okay?
  727. 35:14And so the whole process
  728. 35:17you're going to see the whole process
  729. 35:19starting from the idea to the final
  730. 35:21working bot, so you can do the same.
  731. 35:24Reminder that a bot is a tool
  732. 35:27and the trader still needs to understand
  733. 35:29the logic.
  734. 35:30Choose the appropriate settings, test
  735. 35:33the system, and verify that the account
  736. 35:36conditions are respected. That is
  737. 35:39exactly why the series is important.
  738. 35:42This series is truly really important.
  739. 35:45We are not just pressing a button and
  740. 35:47hoping for the best. We are learning how
  741. 35:49to think like system developers, like a
  742. 35:52quant. Before we finish, let me leave
  743. 35:55you with one sentence. If you cannot
  744. 35:57define the strategy, you cannot test it.
  745. 36:01If you cannot test it, you cannot
  746. 36:04evaluate it. And if you cannot evaluate
  747. 36:07the logic, you should not automate it
  748. 36:10and not trade it. If you want to follow
  749. 36:13this entire process, make sure to join
  750. 36:16the next live, subscribe to the channel,
  751. 36:18leave a like, and ask any question in
  752. 36:21the comment section if you're
  753. 36:22re-watching this video.
  754. 36:24I will answer any question. So, we will
  755. 36:28start from the recap next week. So, even
  756. 36:31if you missed today's session, and I
  757. 36:33advise you to watch it again, you will
  758. 36:35be able to follow along. And remember,
  759. 36:38if you want to take advantage of the
  760. 36:40Funded Prop promotion, the code live
  761. 36:43that you can see down below or up above,
  762. 36:45I don't know, it gives you 20 Sorry, 15%
  763. 36:49at the moment of today on Funded Prop
  764. 36:52Challenge account, instant account, or
  765. 36:54futures accounts. The code is available
  766. 36:57during this live and extra 30 minutes,
  767. 37:00but the real value of this series is not
  768. 37:02the discount. The real value is learning
  769. 37:05how to build a process that is clear,
  770. 37:09testable, and repeatable. Thank you guys
  771. 37:11for being here with me today. I'll see
  772. 37:14you again next week.
  773. 37:16Peace.

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