How the RoboMiner works

[Forex Goldmine]

The objective in designing Robominer was to achieve a risk level in forex trading comparable to other forms of investment. The method used by Robominer is grid trading, and the pairs selected exhibit relatively narrow
historical trading ranges—in each case, a total range of about 2640 pips.

This 2640 pip range is divided into 66 sub-ranges, corresponding to the size of an average wave in each pair. Above the centre point of the range, Robominer opens only sell (short) trades and below the centre it opens only buy (long) trades. If the pair remains within its 2640 pip historical range, no more than 33 trades can remain open at a loss creating a drawdown on the account balance. (No trade will be closed until it is 40 pips in profit.) The total accumulated drawdown for AUDNZD would then be $1525 ($2319 for EURCHF). As long as the account balance covers this potential drawdown (plus an extra margin of safety), the likelihood of a margin call and loss of funds is kept to a manageable minimum.

Robominer will open long positions when the price is below the centreline and short positions when the price is above the centreline, closing each trade when it reaches its profit objective (50 pips). Trades that remain open will not result in a margin call as long as the drawdown is covered by the account balance. To ensure that the drawdown is not exceeded, the default BalanceFactor and LotSize values should be used. We recommend trading both pairs (AUDNZD and EURCHF) if possible for an added
measure of safety.

When Balancefactor is set to zero, Robominer operates as if the balance ere $3,500 as long as the actual account balance remains relatively low.

This figure is increased by steps up to a maximum $7,500 when the actual
account balance reaches $100,000 and safety becomes more important than growth.

Details of the calculations involved in the design of Robominer are given in the document titled “Proof” which is available in the download section of the site.