Our bots are rule based and do not follow Eliott Wave principles or other technical analysis that can be seen here or there. We have a way to represent financial market space which is quite different:
STEP 1: Gross signal
1. First as financial markets look chaotic, you need some fixed points that will matter. Of course as markets move, they are not that fixed after all ...
2. Second, you need to define a scale so that you know when you travel a lot to or from these fixed points
3. Third, you need a rule whether to follow the movement past a certain point (trend following) or to go back (mean reversal)
STEP 2:
Can we filter out some noisy gross signals that do not bring value to long term strategy so that we can reduce number of trades ?
STEP 3:
Once I have a valid signal, how much should I trade ?
And answering these questions with a systematic approach is what we do. And then we combine these algos to smooth the drawdowns.