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Algorithm risk analysis is a systematic process of identifying, assessing, and managing uncertainties that may impact success. It carefully examines various factors that impact objectives, such as schedule delays, cost overruns, quality issues, stakeholder satisfaction, etc.

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Newton's pool, Newton's fractals - a type of algebraic fractals.
Regions with fractal boundaries arise when approximating the roots of a nonlinear equation using Newton's algorithm on the complex plane.

Genetic algorithm: This is a more advanced method of optimizing parameters. It uses principles of natural selection to find optimal parameter values.
These parameters are well-suited for optimization using a genetic algorithm.
Now let's add the logic of the genetic algorithm for the automatic optimization of these

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Risk management is an important aspect of trading that helps protect capital from significant losses and ensures long-term stability.
Capital management is effective management of capital and position sizes. It helps maximize profits and minimize losses.

🤑Risk management is an important aspect of trading that helps protect capital from significant losses and ensures long-term stability.
Money management is the effective management of capital and position sizes. It helps maximize profits and minimize losses.
When I studied at a prop trading company, my mentor always said "we proceed from risks" "we include risks in advance in transactions, in positions, in the trading system" "risk money management comes first" "learning to accept losses in time is also the basis of risk money management" and so on...
Some aspects of money management:
Fixed position size. Determine the size of each transaction so that the loss in the event of a market decline does not exceed the set risk level. After successful transactions, do not increase the position size so as not to expose yourself to unnecessary risk.
Maintaining sufficient capital. Never use all your capital in one transaction. Leave yourself a sufficient reserve to be able to participate in subsequent transactions and recover losses.
Reinvestment of profits. If the trade is profitable, consider partial reinvestment of profits to increase your capital and scale trades.
Don't throw away, don't cutlet, don't put all your eggs in one basket, competent distribution and management of position volumes.
Recognizing a loss in a trade on time and closing the trade (cut the elk).
Stop losses calculated in advance, before entering the trade.
One of the most terrible and potentially dangerous violations of risk money management is dragging losses and averaging your losses with leverage, loading your deposit even more and more. The result in most cases is sad, either you cut the elk even more or liquidate the deposit.
I've been through all this more than once, the market teaches painfully, harshly and uncompromisingly.
It is important to remember that trading is associated with risks, and the results can be individual depending on experience and personal discipline. Competent risk management at a distance neutralizes all losses with profit and brings a positive result to the account.
In the SECRET algorithm, I took into account all and more points and made a multi-stage risk and money management as much as possible. The loss in the most severe outcome, during a spill, during a black swan, etc., should not exceed 16% on the deposit, I left the averaging grid and trade with one order, the shoulders are not higher than 2 shoulders, algorithmic stop, a hard stop on the transaction is -8% and on the deposit -1.6%.
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Telegrм @kryptohunter0

Genetic Algorithm: This is a more advanced method for parameter optimization. It uses the principles of natural selection to find the optimal parameter values.
These parameters are excellent for optimization using a genetic algorithm.
Now let's add the logic of a genetic algorithm to automatically optimize these
parameters.
The genetic algorithm will iteratively find the optimal values for the listed
parameters based on the results of the trading robot. The main stages:
1. Initialization of the population: Creating an initial set of random combinations
of parameters.
2. Fitness assessment (fitness function): Each set of parameters is tested
by a robot, and its effectiveness (for example, profit) is evaluated.
with
3. Selection: The most successful combinations are selected to create the next
generation.
4. Crossover and mutation: Combining the parameters of successful robots and adding
small random changes to find the best solutions.
5. The cycle repeats until the optimal parameters are found.
I will add this logic to the robot's code.
We can embed the genetic algorithm into a separate module that will
interact with the robot. Here's how you can do it:
1. Define the parameters for optimization.
2. Let's write a genetic algorithm for iterations over the parameters.
3. Let's link this to the robot to test combinations of parameters.
What does this code do?:
1. Initialization of a population with different combinations of parameters.
2. Performance assessment (fitness function) for each member of the population through
simulation work.
3. Crossover and mutation to create a new generation of parameter combinations.
4. The process is repeated until the specified number of generations is reached.
You can integrate this code into existing logic and link it to your robot. You will need
to replace the simulate trading with robot call with a real test run working with
the passed parameters.
I successfully use this method of genetics in my algorithm and in my trading on the cryptocurrency exchange. Good luck.
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Telegrм @kryptohunter0

This is a mode that uses a fixed percentage of the account balance for each position copied from the lead trader.
The user sets the total investment amount in the portfolio, and the system adapts the volume of copied trades, proportionally distributing investments according to the entered amount.
Advantages of the mode:
maintains a proportional weight of the portfolio relative to the lead trader's portfolio;
helps manage risk, since the trader determines the exact amount allocated for the trade in advance.
will maintain the correct risk management mathematics.
Disadvantages:
position sizes may change depending on the account balance if you transfer funds and your account is constantly changing.
It is important to remember that copy trading is associated with financial risks, it is recommended to consult a specialist before making decisions.
Specifically, in my algorithm, it is highly recommended to use Fixed Ratio, just choose the right amount of funds for you.
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Telegrм @kryptohunter0