>>> 1-General concept
The robot analyzes the market only during the opening hours of the stock market, i.e. between 9 a.m. and 5:30 p.m. (French time) for the CAC40 and DAX40 indexes, and between 3:30 p.m. and 10 p.m. for the S&P500 index. For the rest of the time, if there is a position in progress, it will be maintained.
Every minute, our servers analyze each share, for all French markets for the R2CAC robot (or for the German market, for the R2DAX robot and for the American market for the R2SP robot).
This analysis allows us to determine the trend on each stock.
After studying the entire market, the robot then compiles the results to determine a leading indicator of market sentiment.
Based on these indicators, our robot then examines the situation, and determines according to the current trading position whether to close the position, open a new one or reverse the position.
Schematically, here is how the robots work:
From the market indicator, the robot uses sets of trading parameters (see point 2-Different decision modes) to make trading decisions, generating trading signals.
The robot then applies several methods of money management and risk management (see point 3-Multifactor risk management):
- the robot applies its integrated money management to optimize its performance and manage risk
- a risk management module based on the concept of VaR (Value at Risk) is applied in order to modulate the size of the positions according to the probability linked to the mathematical risk of the system
All of these calculations are performed in an average of 100 milliseconds, or about 0.1 seconds.
The decisions and the trading signal are then made available to all R2D2 trading subscribers via the expert advisor installed in the Metatrader 4 (MT4) trading platform.
