This guide is for new ProQuant users to setup your own trading bot with Trading212. A few easy steps and you're good to go!
Step 1 - Install apps
Install following apps:
Step 2 - Setup API key
Create Trading212 account and get API key
- Open the Trading212 app
- Create your free Trading212 account
- Go to settings -> API Keys and create new API key
Step 3 - Enter API key in ProQuant
Create ProQuant account and enter API key
- Open ProQuant app
- Go to: Settings -> Connect to Brokers -> add new connection
- Enter API key from step 2
Step 4 - Follow a strategy
Before we start following a strategy, what key ratio's are important?
Stop Loss Impact
Look for strategies with low SLI (Stop Loss Impact) values, lower than 15 is reasonable. Lower SLI means that you are better protected against sudden unfavourable market moves
Date started
A new strategy with a few wins does not automatically means it wil be a great strategy. You could expect better results with a strategy which is stable for months.
Win/Loss Ratio
The win/loss ratio is the ratio of the total number of winning trades to the number of losing trades. It does not take into account how much was won or lost, but simply if they were winners or losers
A high win/loss ratio, above 0,50, means the strategy will have more winners than losers.
Graph
Look at the chart! Is it a straight line up, or will it show lots of ups and downs? A stable chart is better.
Max Drawdown
A drawdown is usually quoted as the percentage between the peak and the subsequent trough. If strategy hits €100 as a peak, and it dropped to €90 before moving back above €100, then the strategy witnessed a 10% drawdown. Strategies with lower than 50% Max Drawdown are reasonable.
Profit Factor
A Profit Factor above 2 is outstanding. Obviously, the larger the number is, the better.
Basically Profit Factor of 2 means that if I invest 1 Euro I can expect to get 2 back. So a profit factor equal 1 means that if you invest 1 Euro, you get back exactly the Euro you invested.
- You've found a good strategy? Great! Click on Follow
Enter funds for trading in the next screen
- Enter Funds for trading. This is the maximum amount the strategy can lose before it will be stopped by ProQuant. So your maximum you can lose is €50. The lowest amount possible is around €20.
- Click next
In this screen you can switch between trading modes. If you are ready to trade with real money, select that option and click on Run with Automated Trading.
Congratulations! You've started your first Automated trading bot using ProQuant! No other actions are required for this trading bot, everything is automated. All you have to do now is to wait for new trading positions to be opened. It depends on the strategy how frequently it will trade. Some trading bots will execute multple trades per day, others only a few per week. All trades can be seen in both the ProQuant app as in the Trading212 app.
My advise is to run multiple trading bots simultaneously to diversify your risk. It is possible to run up to 99 trading bots!
Good luck and check my ProQuant account for more available strategies!
