Our company started to work on developing trading strategy based on widely known Camarilja strategy in 2010. In 2014, on the basis of this strategy, Shadow Camarilja advisor was created, trading intraday and on the break though of the constructed channel accordingly with Camarilja strategy calculations.
During the process we found the areas that got the most guaranteed profit beyond the boundaries of calculated intraday Camarilja channel. This zone can be defined as the channel's "shadow".
Initially, the strategy was developed for safe trading, without any use of the "martingale" or averaging systems. So the advisor is not leaving the loss making positions to float free in the market, but closes them by StopLoss, entering the market on the new trading day not dragging the loss making positions behind.
Average relation of profit positions to the loss making positions is 30 to 1. It's 30 profit positions per 1 loss position. With the use of 10-15% of the deposit for market entry, "Shadow Camarilla” gains stable income starting from 100% annual. Maximal result during the tests is 573% in 2012 with the GBP/USD pair. With the drawdown not exceeding 11%, with the StopLoss values of 95 points and average profit of 35-75 points.
"Smart Close” system of profit fixing is applied in advisor. This function allows to fix the profits just in time, to exclude the possible "mischief" of the Brokers when the profit is fixed. Closing the position by using specific calculations that sometimes can close the position before reaching the physical TakeProfit values equal to the current spread range. Which excludes the price freezes by not so honest Brokers.
Traditionally, our company always builds in some form of trader awareness, like voice notifications or the info panels, making the use of any advisor or trading strategy easier.
Few info modules are used in "Shadow Camarilja” advisor. In form of a voice messages and text/graphical indications.
Voice message is played with closed and opened position, and other activities.
At the beginning of a trading day, advisor indicates the levels on which the positions will be opened with lines. With the info panel at the top left corner of the chart indicating planned profit in points if the position will be opened on projected levels.
In case if there are no conditions for market entry, info panel will indicate the absence of any trading activity and the reason for it happening (the projected level being too tight or too wide).
For increased trading accuracy, a filter is used that excludes the trades opening for channels breakthrough or increased market volatility. The Ichimoku Kinko Hyo indicator is used as indicator in this filter.
"Shadow Camarilla” has a constant monitoring and self-diagnose module enabled at all time. Info panel will notify he trader about its condition - working, expecting the trading conditions or disabled.
At the bottom part of the chart we've placed the info panel that informs he trader about trading conditions on used trading account and trading statistics - profit in currency and in points, amount of profit and loss making positions.
Instructions to Forex advisor Shadow Camarilja v.2.0