Holly AI in automation is now available

Holly AI is here for Brokerage Plus in Trade-Ideas! They officially released Holly for automated trading on March 25th, 2019. For anyone who already has the Premium version of Trade-Ideas with the Brokerage Plus license can automatically have access to the new Holly AI tab. Let’s dive and take a look in details of how it works and what to expect!

What is Holly AI?

Holly AI is Trade-Ideas built-in trading robot. They offer 3 different segments of the AI that all share the same types of strategies, but each segment will trade different types of stocks throughout the day. They’ve been running this automation tool for a few years now, however, if a trader wanted to take the same trade as their AI, you would have to manually enter the trade after the trade signal was alerted in your broker account.

During the night the day before the next trading session, Holly will rebuild or re-optimize the strategies with the latest market data and the AI part will decide which strategies to activate for the upcoming session. Therefore each trading day has a newly optimized version of the strategy in hopes to catch the latest market trends.

Holly Segments
The different segments of Holly AI

But which strategies should I pick? If I follow all of them I will have too many trades opened!

That’s totally up to you to decide. Each strategy name can be found on Trade-Ideas’s website and you can see what that particular strategy will be searching for in the markets to trade. Additionally, each Holly segment while may trade the same strategy on the same day will look at different types of stocks to trade. So if the Bullish Trend Change strategy gets alerted in the 2 different segments at the same time, they won’t be the same ticker.

Holly in Action
Holly in Action

What are the trading configuration available with Holly AI automation?

Once you’ve opened up Brokerage Plus and you’ve opened a new Holly AI tab, you can right-click anywhere and get this prompt:

Right click Holly AI Tab in Brokerage Plus
Right click Holly AI Tab in Brokerage Plus

All of the long and short trading instructions have the same option. The Reenter Trading instructions is a Holly AI special option. If you get stopped out of the position but then the trade retraces back in the direction of the original trade by 50%, you can choose to reenter the trade using the original stop. Here you could change your risk value to be something different from your original entry. This gives Holly a second chance to take the trade.

Here’s a list of the settings you have. I’ve highlighted 3 that we will discuss in more depth:

Holly AI settings
Holly AI settings

1. AI Trade Mode

Risk on / Risk off:

  • Risk on means that if the volatility is in your favor, then Holly will hold onto the trade longer and it will not honor your timed exit and let the trade run until the end of the day. If the stop loss is reached, the trade is exited regardless.
  • Risk off means that if the volatility is against you, then Holly will honor your timed exit. If the stop loss is reached, the trade is exited.

Here you can pick if you want to have your trades to be either Risk on/off, or let Holly decide for you. In my testing, I found that letting Holly pick for you seems to be the better of the 3 options.

2. Position Sizing

This setting is just like the setting for when you automate your own strategies. You can pick either fixed dollar amount, fixed share amount, or my personal favorite being based off the stop loss. This option will take your entry and the stop loss and calculate the number of shares to trade with based on the maximum amount of dollars you are willing to lose on the trade.

3. Limit Offset

For some reason, the default value for this is -0.11 cents which is a lot. I’d recommend using a value of -0.02 or -0.01 depending on how much latency you have between your trading computer and the markets.

Inside the market means that it will put a limit order 0.02 cents above the trigger price for a long position. So if the trigger price for a long trade is $30.50, you’ll have a limit order sent to the broker for $30.52. The opposite is true for short positions.

What to expect with Holly AI?

Honestly, the performance of Holly is just okay. Most days I find she breaks even. But every once in a while she gets that one day when it catches all the right trades and it totally beats the markets. However those days are rare and with the rest of the average performance, I find that either using Risk on or Risk off, you won’t be retiring from your job and living off of Holly’s gains any time soon.

I’d recommend that you go to the different segments of Holly, pull up all the historical data, copy/paste it into excel or google sheets and run the numbers. Pick and choose one or two strategies that you might like, or that she performs best with and on run with that. Do your homework on her past performance both Risk on and Risk off before jumping in and putting all your money at risk on Holly.

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