Guidelines for smart use of Braintech strategies

Allocate capital effectively:

• Minimum allocation: each strategy requires a minimum amount of capital to operate correctly. If the allocation is too low, the strategy may not activate or may become ineffective.

• Balance risk and return: allocating too little limits potential gains, while allocating too much can increase overall portfolio risk.

Note: make sure each strategy has enough capital to function properly.

Using multiple strategies with caution:

• The benefit of diversification: running multiple strategies simultaneously can reduce overall risk, but only when done thoughtfully.

• Avoid over-exposure: allocating capital across too many strategies without a clear plan may lead to excessive fragmentation and weaker results.

Note: avoid enabling too many strategies without a balanced allocation. Spreading capital too thin can reduce performance and make results harder to achieve.

Monitor and optimize your strategies:

• Analyze performance: use charts and historical data to evaluate which strategies are performing well and which may need adjustment.

• Adjust allocations when needed: if a strategy isn’t performing as expected, reallocating capital may improve overall results.

Note: regularly review your portfolio and adjust strategies based on performance and market conditions.

Match risk to your personal tolerance:

• Use the Risk Controller: adjust each strategy’s risk level according to your goals and risk appetite.

• Don’t overlook cumulative risk: if multiple strategies run with high exposure, total portfolio risk increases significantly.

Note: track your exposure frequently to prevent overall risk from becoming excessive.

Other factors related to automated trading strategies:

Commissions

What they are: fixed fees charged by the broker each time a position is opened or closed. They may be a fixed amount or a percentage of the traded volume (e.g., $7 per lot).

Impact on Braintech strategies:

• High-frequency or scalping strategies are more affected by commissions.

• Excessive commission costs can erode net profit, especially on low timeframes or strategies with small targets.

Spread

What it is: the difference between the Ask (buy) and Bid (sell) price of an asset. It is an “invisible” cost paid at execution.

Impact on Braintech strategies:

• High spreads reduce execution precision.

• On volatile assets like XAU/USD or NASDAQ, spreads may widen during turbulent market conditions, causing less optimal entries or unwanted stop losses.

• Braintech strategies are optimized for medium-to-low spread conditions.

Slippage

What it is: the difference between the requested price and the actual execution price, typically caused by volatility or low liquidity.

Impact on Braintech strategies:

• It can alter the effectiveness of automated orders, especially during economic news releases or in illiquid markets.

• It may compromise expected stop losses or take profits.

• Using a VPS (as recommended by Braintech) reduces latency and minimizes slippage risk.

Swap (Rollover)

What it is: a cost (or gain) applied when holding a position overnight, based on the interest rate difference between the two currencies involved (in the case of Forex).

Impact on Braintech strategies:

• Medium/long-term strategies may accumulate negative swaps if positions remain open for extended periods.

• Some assets (e.g., XAU/USD or indices) have significant overnight swaps that should be considered within the risk evaluation.

Disclaimer: the information provided on this page is for educational and informational purposes only and does not constitute personalized financial advice, investment solicitation, or recommendations. Any investment decision must be made independently or with the assistance of a qualified financial advisor.