Balumbo offers completed trading algorithms to its members, changing depending on last month's most profitable trades. However, Balumbo also offers to customize your trading algorithm depending on your own personal preferences. Customizing your algorithm could be more of a risk than what we already have configured for you, but it could also help you increase potential profits. Hopefully, this guide will help you understand more about what Balumbos algorithms has to offer.

Configuration documentation

Introduction of the algorithms

How do our algorithms work? Our algorithms change depending on profitability from month to month. We strive to deliver the best product we can offer to our customers, working hard to develop more and better algorithms suitable for the current market behavior. Unfortunately, an algorithm won't have the exact same result every month, thus it is important for our algorithms to be flexible and dynamic which we continue to constantly try to improve. Your satisfaction over trades and our products are our number one priority.

 

By default, our algorithms trade during bullish markets and tries to find entries before potential uptrends and during trend pullbacks

Stop-loss, take-profit

Changing stop-loss and take-profit can have a huge impact on both win rate and profit returns. Let's say your trading algorithm gets a buy signal and opens a trade for you. If your stop-loss is too low, for example, -0.5% and the price drops below this your algorithm will sell your trade and it will result in a loss. This is a common mistake for many trades as a lot of the time the price could increase shortly after, resulting in a missed possible profitable opportunity. Having it too high on the other hand, could result in a bigger loss. The same principles go for take-profit. Having take-profit too low or too high can result in a missed profitable opportunity.

Relying on technical analysis and excluding emotions will give you the edge you need in trading, hence relying on the default dynamic settings is a good idea.

Our algorithms do not instantly secure profits as fast as the price reaches the take-profit, but lets the winners run for more profitable trades

Timeframe to trade on

Changing the timeframe will also determine how many trades will be executed. Having a low timeframe could mean more winning trades, but it could also mean more losing trades. In general, the 15-minute timeframe is not recommended as it could be more inaccurate in determining if the market is in a bullish or bearish direction. Higher timeframes generally have an easier time determining bullish or bearish market direction. The most profitable timeframe for Balumbo so far is the 45-minute timeframe. 

An example of determination between a winning and a losing trade could be your stop-loss to take-profit. Lower timeframe such as the 15-minute timeframe with more trades does not necessarily equal a bigger profit return, comparing it to for example the 45 minute or 1h timeframe.

Summary

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