Preparation for trading

The trading results using the Phantom Flow All-in-one indicator, whether in manual mode or with the use of a bot, directly depend on how responsibly you approach backtesting the algorithm for each instrument. Yes, hypothetical results based on historical data do not guarantee future profits, but at the very least, you will have substantial grounds for making trading decisions.
You can use a backtester on the TradingView or ATAS platform, as they provide identical results based on the selected settings. However, the backtester in the ATAS platform offers a wider range of settings, faster performance, and the ability to select a specific period for backtesting. It may take some time for you to understand the rules and approach to the process of backtesting a trading system. Here are some recommendations that can help expedite this process:
  • Pay attention to the commission, especially on lower timeframes, particularly in the cryptocurrency market.
  • Do not strive to use low timeframes, more active trading does not always lead to higher profitability, on the contrary, it can result in the opposite, as mentioned in the previous point.
  • In the ATAS platform, you have the ability to select the backtesting period, which allows you to test a vast amount of data and also break it down into intermediate data for a more visual representation.
  • You will have combinations of timeframes and instruments for which it is simply impossible to find suitable parameters. Sometimes it is easier to change the instrument or timeframe to achieve better results.
  • We cannot guarantee that your intervention in automated trading can improve the results, but in some cases, when there is an understanding of the market context, it is optimal to use the bot in a semi-automatic format.
  • The number of instruments traded simultaneously should not be too large (so that you can monitor and control trading on each instrument), but it should also not be too small (for trade diversification).
  • Approach the risk selection for a trade responsibly. Pay attention to the Max drawdown field in the backtester window, and also compare these values, taking into account simultaneous trading on multiple instruments. In some cases, the profitability of one instrument over a period can be nullified by a too high risk on another instrument.
  • Do not consider automated trading as a completely autonomous system; you need to regularly check its functionality. Trading bots are a means to eliminate the routine from your trading, but not a way to replace it.
  • Please note that diversification through increasing the number of tradable instruments works best when there is low correlation between them.
  • Most often, finding optimal parameters helps increase the risk-to-profit ratio, but in this case, the win rate of the trading system decreases. In this situation, you should consider adding a condition for moving the stop loss to breakeven.
We hope that by following the aforementioned recommendations, you have managed to select the parameters for several tools. Now you can proceed directly to the start of automated trading.