The beautiful thing about our trading algorithms is that you can control the risk variable. You could increase risk or reduce risk depending on your risk tolerance. In this video, I’m going to go over a certain account that has the risk settings a tad bit too high in the best way possible. Without further ado, let’s jump right in.
Welcome back! If you’re new to the channel, my name is Matt Jimenez. I’m an entrepreneur who has worked with the greatest minds in finance over the last several years, and I’m here to impart to you guys everything important to me. In this video, I’m covering the Yellen bot. Last week, I made a video covering the – hold on, espresso break – the Yellen bot on espresso.
Now, the Yellen bot on espresso is essentially the most aggressive setting that you could set on an account. But in this video, I want to talk about toning down the risk, putting down that cup of espresso, and maybe substituting it for a normal cup of black coffee. The analogy here is basically just reducing the risk from high to just a little high. In this video, we’re going to go over exactly what that looks like in terms of performance.
Now, enough rambling. One more sip and let’s look at the charts.
Okay, so this is the Yellen high risk. As you can see here, this is a 1 to 200 leverage on this brokerage account. Typically, when you have higher risk settings, you want to have higher leverage possibilities because it will utilize the leverage to help it perform as efficiently as possible. Typically, I actually prefer it to be 1 to 500. Again, none of this is financial advice. This is simply what I do for my own accounts and what makes me comfortable in my trading accounts. The reason being is because when you have greater leverage, since these softwares are extremely active, it’ll use more leverage but for smaller movements. That’s why you have such great performance. When the leverage is lower, you actually can’t take on enough leverage when needed in the higher risk parameters. Again, this is just from personal experience and none of this is financial advice once again.
Now, this account was made back on October 22nd, 2023, and today’s current date is June 2nd, 2024. So it hasn’t been a year yet, and the account has already done 63%—6349 to be exact. The daily change is 22%, the monthly average is 6.84%, and the unrealized drawdown that has occurred was 31%. Not sure what happened there, but that is far higher than what is typical on the accounts. But again, these drawdowns are unrealized, so they never reflected in the actual account balance, just in the equity curve.
With that being said, typically with the drawdowns being higher, the upside is greater. While we may have seen a larger drawdown, a lot of times the different strategies that are implemented in these softwares typically will size into these drawdown positions, which will ultimately offset them as they recover and ultimately return a greater profit. Again, I will say it: past performance doesn’t indicate future performance, and this is simply for educational purposes.
So, this account was started with $50,000 and there has already been a withdrawal of $220,000, so about half is already taken out from the initial investment. Now, the account balance is currently sitting at $57,135. Profit-wise, it’s done $17,995 this year. And again, guys, this is just for the year of 2024. So it’s June now, meaning we haven’t even gotten through the majority of the year yet. It’s done a total of 4,701 trades, and the profitability of those trades is 76%. So it won 3,564 trades out of these 4,701, which means we lost 1,137 trades, representing 24% of the total trades taken.
Swinging over to the profit factor, one of the most important things to look at, we are at 1.66, which is good. Anything above a one is what we’re shooting for.
Now, scrolling down to the bottom, let’s look at our favorite thing, which is the bar chart. The account was started in October, but it was started in the very last days of October, so there really weren’t any trading days. I think there was maybe one trading day, if that, and it was at the end of the week. That month was only a 0.3% change because there was only one trading day in October. Technically, the account started a full month in November.
In November, it did 2.51%.
In December, it was 15.34%.
Popping over to 2024, in January we did 9.29%.
In February, we did 3.45%.
In March, we did 10%.
In April, we did 5.56%.
In May, we did 5.28%.
Now, this software clearly did not perform as well as the espresso one did. Espresso makes me perform better as well, but nonetheless, this was an extremely profitable software considering that it’s never seen a losing month so far. Overall, it has a profit factor of 1.6, which is again very good and what you want to look for when you are looking to get a trading software or adopt any trading strategy.
If you’re interested in how you can get your hands on a Yellen bot, maybe you put it on espresso, maybe you don’t – the link is down in the description for you or in the comments pinned at the top. But if not, please leave me a like, comment, and subscribe. And like always, my friends, espresso!Please visit Results Of High Risk Settings On Trading Algo | Yellen Bot to watch the full video on YouTube!
