As the name suggests, Inertia Trader, is a completely automated Forex robot that successfully exploits the concept of price inertia, which means it completely focuses on the physical properties of price momentum.
What exactly does that mean?
Inertia Trader is constantly monitoring the market for sharp price movements. When these movements occur, the system will determine if the inertia is enough to keep the price moving in that direction or if it is a temporary movement.
If the inertia is strong enough, Inertia Trader will take trades in the direction of the momentum at the close of the bar. Each trade uses a hard stop loss and hard take profit to protect your account just in case of emergency.
The take profit is always about a third larger than the stop loss. This ensures a positive reward for risk on every trade. No large stop loss is used, ever. This positive ratio gives Inertia Trader a strong edge of the market in the long run regardless of current or overall market conditions.
Because the system trades on the close of the trading bar, any strategy testing done against historical data will match live trading very closely. It is also because there is no internal repainting of any kind in the system.
And because the system is entirely based on fundamental market principles and not on past historical data, the system does not need to be regularly optimized.
What about high risk trading tactics?
Inertia Trader does not use any high rick trading tactics. This means:
* NO Martingale
* NO Position Averaging
* NO Grid Trading
* NO Arbitrage
* NO Hedging
* NO Scalping
* NO High Frequency Trading
* NO Long-term Floating Drawdown
It is fully compliant with all Forex brokers including US-based brokers that require FIFO. It also does not require any highly leveraged trading accounts.
Inertia Trader is not spread-sensitive or slippage-sensitive, which means it’s compatible with more brokers, even brokers that aren’t the most reliable.
The system also has multiple filters and certain delays to make sure there aren’t any spiked spreads or abnormal slippage periods such as during abnormal news. Essentially, protecting your account from any abnormal and risky movements.
Don’t worry if any of the trading strategy confused you. You don’t need any trading experience or knowledge to install and run Inertia Trader.