The Strategy
Obviously we are not going to unveil the ins and outs of our unique trading strategy. Still, for transparency reasons we want to explain a few key concepts in order for you to be able to decide whether HalcyonFX is the right choice for you or not.
This does of course not represent the entirety of HalcyonFX’s strategy but should at least give you a general idea about the nature of trades HalcyonFX takes, so you can assess if the strategy aligns with your personal risk tolerance.
Following the Trend
Since the likelihood of a trend continuation is generally higher than that of a trend reversal, HalcyonFX principally trades in the direction the price is moving in the larger picture. Trends do, of course, change eventually, however, this does not happen nearly as quickly and frequently as we are often inclined to think which is why trading against the trend is rarely advisable. HalcyonFX therefore always bases its trades (amongst other factors) on trend direction and strength. And should the market actually turn for good, HalcyonFX can quickly adapt and has numerous other techniques in its arsenal to deal with changing conditions.
Alternatively, you can always open new positions yourself (or through other trading bots) and have HalcyonFX mange them using the techniques mentioned below
Securing Profits
Nothing hurts more than seeing nice green numbers on your open trades only for them to turn red a day later. That is why HalcyonFX secures its profitable trades with a trailing stoploss making sure those beautiful gains do not slip through your fingers due to sudden market reversals. HalcyonFX leaves your trades just enough room to breath and find their way so they do not get stopped out before their big profit surge. Once that surge is beginning to unfold, HalcyonFX closely follows its development in order to catch your profits before they fall back down again.
Cutting Losses
Sometimes losing small is just as important as winning big, even if it does not feel equally rewarding. Luckily, trading bots like HalcyonFX do not have feelings and thus do not fall victim to irrational decisions based on fear or hope but instead consistently adhere to their strategy. Making the right choices at the right times is not easy. Still, in trading you cannot always make the correct predictions so even more importance falls on the way you handle being incorrect. A crucial aspect in that regard is cutting your losses before they become overwhelming. HalcyonFX constantly evaluates the market situation and closes losing trades that have little chance of recovering any time soon.
Averaging & De-escalation
In the financial markets you can regularly observe prices first taking a hit in the opposite direction before embarking on the anticipated course. Usually, those detours are limited and you will be in profit sooner rather than later. However, occasionally detours extend into entire journeys of their own or change the price structure entirely rendering a return to your entry level more and more unlikely. In such situations HalcyonFX can look for pullback opportunities and enter additional trades in order to move your breakeven closer to the price and thus recover unfavorable entries. However, as additional trades also mean additional risk, HalcyonFX also employs a unique de-escalation algorithm gradually reducing position size as the price develops.