the operation of BLUATLANTICO
has been suspended until further notice
The BLUATLANTICO Expert Advisor is an automatic trading system designed specifically for the currency market, developed by Umberto Mennini, Saverio Berlinzani and Angelo Melis, on behalf of Saveforex. BLUATLANTICO is a contrarian-grid, dynamic and variable spacing trading system, in which important volatility filters have been inserted which have historically limited its operation during erratic phases, proving to be efficient even during flash crashes that have occurred in recent years . There are, in the system, a maximum of 15 exchange rates, chosen specifically for their statistical decorrelation, and designed to increase portfolio diversification, with the main objective of reducing drawdowns. The statistics that will follow (Performance, Draw Down etc.) have been carried out on the basis of the recommended setup, but it must be borne in mind that these could be reduced depending on the risk predisposition of the individual user. The system does not work with an Equity of less than 29,000 EUR / GBP / USD, due to a security issue wanted by the system builders.
The BLUATLANTICO system works optimally in trading range situations, while it tends to produce drawdowns in moments of strong volatility. Therefore, these characteristics must be considered before starting to use it, and its operation must be thoroughly understood. Despite this, even in conditions of strong volatility, and thanks to the insertion of filters related to it, backtesting statistical analyzes have shown an excellent stability of the system, which has proven to be very reliable in the nine years analyzed.
The BLUATLANTICO system was conceived and perfected taking into account the intrinsic and structural characteristics of each currency pair examined, therefore also considering the interest rates (safe haven currencies and investment currencies), so as to adapt it to the volatility and correlations present on the market in conditions of risk on / risk off, which from time to time change the structure of the different price actions.
It is good to remember that the backtesting period was specifically chosen from 2010 to 2018 included, excluding the years of the great financial crisis (2008-2009). This is not because the system would not have been profitable (indeed, the system would have performed very well anyway) but because the absolutely anomalous Bid-Ask spreads of that period, as anomalous the period itself can be considered, would have made the backtest unrealistic.
The backtest is based on an initial capital of 1,000,000 EUR. The DD is calculated on the basis of the initial capital of 1,000,000 EUR and not on the maximum capital reached. The performances are calculated in simple and non-compounded capitalization, therefore without adjusting the exposition to the new capital reached.
It is important to point out that the results shown below refer to a capital to which the defined MK 1.0 scheme is applied, that is the one considered by the manufacturers to be the most aggressive, which is however modifiable and adaptable to the needs of each customer, through the application of more prudent schemes such as MK 0.66, MK 0.50, but also MK 0.33 and MK 0.20, in a sort of taylor made program that makes the model totally flexible to the needs of the user, in terms of the maximum chosen Draw down, well aware of the fact that this ratio (Profit / Max Draw Down) remains the same for all MKs, ie higher than 2. In the example shown below we will highlight two cases, namely MK 1.0 and MK 0.50, to allow full understanding of the system and the possibility to choose the size of your risk profile at will (SEE NOTES AT THE BOTTOM OF THE PAGE).
The backtest does not take into consideration any human intervention, it is fully automated. Despite this, the system provides for the possibility of manual interventions at the discretion of the user.
The BLUATLANTICO system has numerous portfolio protections, linked to volatility, Max drawdown and maximum portfolio exposure. By the choice of its builders, it excludes two months of operation, the entire month of August and the period from 15 December to 15 January, two moments that usually statistically highlighted, in the past, very high volatility due to the lack of liquidity linked to the summer period and at the end of the year, in which large market makers and liquidity providers usually reduce their operations, with the consequence that volumes decrease significantly causing erraticity often irrational and in some cases true and own potentially dangerous flash crashes.BLUATLANTICO - STATISTICS
EQUITY WITH MK 1.0
The total performance was 475.63% in 9 years, in simple capitalization, equal to 52.84% per year. The Max DD was 23.46% on 17 September 2012. The average DD is very low, around 2.37%.ANNUAL RESULTS (MK.1.0)
As can be seen from the distribution of profits by year, 2016 was the most profitable year, while 2018 was the least performing with a + 42.97%. The portfolio shows a standard deviation of returns equal to 7.91%, very small compared to the average of results, symptom of balance and linearity. In this regard, it should be remembered that the price actions of the years in question were very different from each other, with significant variability in the short and medium term volatility.
• 2010 / +55.67%
• 2011 / +56.89%
• 2012 / +45.34%
• 2013 / +49.11%
• 2014 / +44.49%
• 2015 / +60.44%
• 2016 / +68.47%
• 2017 / +52.26%
• 2018 / +42.97%
The statistics of the portfolio with MK 0.50 have been completely reduced by exactly 50% compared to the portfolio with MK 1.0. The total GAIN of the system was 237.81% in 9 years, in simple capitalization, equal to 26.42% per year. The Max DD was 11.73% on 17 September 2012. The average DD is very low, around 1.18%ANNUAL RESULTS (MK.0.50)
It is important to note that it is not possible to reduce the MK to a number lower than 1 if we consider an initial capital of approximately 33 thousand Euros. The explanation is due to the fact that, being the BA a grid system that gradually increases the exposure, the operations must start from a minimum exposure that cannot fall below the micro lot (0.01 or 1,000 units of the first currency) of the MT4. The accounts must therefore be made considering a 33,000 Euro account as a basis and its multiples as a subsequent setup. That is, assuming that 100,000 Euros is the capital available to us, we will be able to choose to use only a part of it, for example 33,000 Euros or 66,000 Euros, but we will not be able to employ less than 33,000 Euros. On the other hand, we could choose to use 50,000 Euros, which due to the rounding of the initial LOT (which always occur by default) would become 33,000 Euros. To choose to use only a part of your capital just reduce the MK to a number lower than 1.0. This problem of the impossibility of reducing the MK for accounts less than 33,000 Euros is eliminated where the broker allows a minimum sale lower than the micro lot. There are brokers that offer so-called 'nano lots', which is 100 units of the first currency instead of 1,000. If you have an account in nano lots it would be possible to request a BLUATLANTICO Expert Advisor calibrated ad hoc for this type of account.