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.
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. 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 3 lacs as capital per lot.