Strategy AG Capital

All information about the trading algorithm

Detailed Description of the Trading Algorithm and Return Calculations

The AG Capital trading algorithm is a systematic strategy that combines mathematical models and risk management. Its primary goal is to generate stable profits in volatile markets, avoiding both excessive risk and passive waiting.

Key Operating Principles:
Averaging: The algorithm uses a protective averaging strategy that automatically adjusts position opening and closing levels when the market moves against the initial entry. This allows for a lower average entry price and increases the likelihood of profitability during a correction.

Position Sizing: The volume of each trade is automatically calculated based on the instrument's volatility and current capital. This prevents excessive risk exposure from a single unsuccessful trade.

Diversification: The algorithm trades 10+ financial instruments, including currency pairs (EURUSD, GBPUSD), indices (S&P 500, NASDAQ), and commodities (gold, oil). Diversification reduces the dependence of results on movements in one specific market.

Expected return: 1% to 3% per day

This is a target range based on backtesting and historical data. It's important to understand that returns are nonlinear: there will be days with returns above 3%, days around 1%, and periods of correction (drawdown). The algorithm prioritizes capital preservation, so it may reduce activity during periods of high uncertainty.

💰 Calculating Potential Returns for Different Amounts and Timeframes

The calculations below are based on compound interest (reinvestment of profits) and illustrate three scenarios: conservative (1% per day), moderate (2% per day), and optimistic (3% per day). These are mathematical projections and not guarantees of results.

Investment: $100

Investment: $1,000

Investment: $5,000

⚠️ Critical Clarifications and Risk Factors

Nonlinearity and Drawdowns: In practice, 260 consecutive days of stable profit without corrections are impossible. The calculations do not take into account periods of drawdowns (losses), broker commissions, and copying fees. The actual growth chart will be undulating.

Compound Interest is a Powerful Tool: These calculations clearly demonstrate the power of compound interest. However, for it to work, you must reinvest your profits and allow the algorithm to operate over the long term.

Risk of Capital Loss: Trading in financial markets always involves risk. A full or partial loss of your deposited funds is possible. These calculations are mathematical models and do not guarantee returns.

Influence of Deposit Amount: As can be seen from the tables, the initial amount significantly affects the absolute result. However, the algorithm's effectiveness is measured in percentages, not in currency. The algorithm works the same for both $100 and $10,000.