Data is the new oil, at Squareoff we firmly believe there are lot of hidden gems if we dig deep with the data. For months we have been working on this machine learning bot to generate a consistent returns with higher winning accuracy with least risk.
We did forward test with the ML bot by running it live in our own account with 2 lacs capital, 1 lot in Nifty and 1 lot in Bank Nifty weekly options, since Sep 2020, it generated around 45% returns in last two months with winning accuracy of greater than 65%. Please note that its directional option selling strategy.
How does Machine learning bot works?
Unlike our other trading bots which works based on price patterns and other historical data, ML bot works based on live data that includes everything price, volume, Open interest, volatility, we added as much as data we can, so that the BOT can quickly analyze the datasets and make buy/sell decisions.
By trading with 2 lacs capital, the bot has given only 9% drawdown so far. The max loss happened so far in a day is 10k with Nifty & 10k with Bank Nifty and average number of trades in a day will be around 2 or 3 trades. We do not have backtest for ML bot, the structure is so complex that its hard to backtest like any other simple strategy, the bot was trained to find alpha with huge historical intraday datasets and later we forward tested it by deploying our own capital. So the give info is for short period of forward test sample days only, there are days where the ML bot could trigger multiple trades (as high as 12 to 15 trades in a day) and it never uses any targets but has predefined stop loss of 25% as a part of our risk management. we recommend users to trade with only just one or two lots for few months and gradually scale up the size. Trade this bot only with the capital you can afford to lose, we see ML bot could be a big game changer with dynamic analysis, over the longer run it should generate higher returns.
The ML bot trades on both Nifty and Bank Nifty, based on the live data it shorts ATM CE or PE, and keeps a risk management stop loss with each trade. The ML bot will keep changing the positions from CE to PE or PE to CE based on incoming data. It works like Stop and Reverse system, if the data suggest to short Call option, it shorts ATM call option and waits for PE signal to appear, if the data suggests to short Put option, then it will squareoff the existing call option, cancel the existing Call option stop loss and initiates PUT option strike.
The default stop loss is kept as a part of risk management, in case of any issues from broker side due to which connection gets lost, then ML bot users will be at risk if we don’t keep a stop loss in the order book, thats why bot places default stop loss, but when next order is triggered, those SL orders are cancelled along with squaring off open positions. We recommend to trade this bot with minimum 4 lacs as capital per lot.
Machine learning bot will be available for all our existing bot subscribers without any additional cost. If you are not a subscriber, then you can access all our 15 trading bots at Rs.29500 per year. You can subscribe using this link https://rzp.io/l/alicebluebots You cannot subscribe only to ML bot, as its not a standalone bot. Currently, it works only with Aliceblue and Angel Broking. You can take free trial using this link https://squareoffbots.com/
We always recommend subscribing to all bots instead of individual bots because, at Square off we always work on innovative trading ideas, so we keep developing new strategies and implement it as a bot, all bots subscribers will get access to any new bots we develop without any additional cost.
The Machine Learning bot has made around 1.5 Crores over all profits which is more than 60% returns in last 1 year(as on Dec 2021), however few months was rough in between, due to market volatility back to back stop loss was hit and the strategy was in drawdown phase, but eventually it recovered from drawdown and made new equity high . That’s why we always say be disciplined and stick to the trading bot for longer period, users who see streaks of losses would stop trading the bot thinking it stopped working, and users who traded with over leverage would have blown up their capital during drawdown phase. But all bot users who traded with correct leverage was able to sail through drawdown phase easily. We recommend to trade with 4 lacs per lot to trade this strategy. live profits of ML bot can be checked here http://performance.squareoffbots.com/
All you have to do is, just login to https://squareoffbots.com/ with your Aliceblue id and give input (no of lots you want to trade) to ML bot. Every day login is mandatory as per compliance process, you can give input to bot every day between 8am to 9am. The orders will get executed automatically in your aliceblue account along with stop loss orders, by end of the day BOT will auto squareoff the orders. So once you authenticate the bot in the morning, there is no manual intervention required.
Profits made for one lot
On a monthly basis, this ML bot is very consistent. Here’s the last one year monthly profit made by the bot for one lot, we recommend 4 lacs capital to trade with one lot. The best month was Dec 2020 where it made Rs.47,000 gross profits and worst month was in Jan 2021 where it lost Rs. -2500. When it loses the loss is capped and when it makes profits, it makes big. Only 2 months were negative in the last one year.
Even if we look at the daily profits for the last one month, it did not fluctuate much on the downside, it keeps the risk to the minimum and generates consistent profits. Remember, these are actual live performances of the bot for the last one year, it’s not a back test report.