The LangArn Strategy
A disciplined, adaptive, and risk-managed approach to trading.
Core Philosophy: Trend is Your Friend
The LangArn bot is fundamentally a trend-following system. It does not try to predict market tops or bottoms. Instead, its primary goal is to identify the market's main direction (uptrend or downtrend) and only take trades that align with that trend. This disciplined approach has evolved into two distinct versions of our algorithm.
Alan06 vs. Alan07: A Technical Comparison
To provide both stable performance metrics and a dynamic live trading engine, we maintain two parallel versions of our algorithm. Alan07 is the "Product" version, providing the consistent backtest data you see on our site. Alan06 is the simpler, active version used for live signal generation.
| Component | Alan06 (Live Engine) | Alan07 (Product Engine) |
|---|---|---|
| Strategy Logic | Uses a 2-regime model. It determines the primary trend (uptrend or downtrend) using an EMA crossover and applies one of two parameter sets. It does not distinguish between strong and weak trends. | Uses a more adaptive 4-regime model. It first identifies the primary trend, then uses the ADX indicator to determine if the market is strongly trending or ranging (sideways), applying one of four distinct parameter sets. |
| Backtesting Model | Performs a basic portfolio simulation assuming a fixed capital amount is used for every trade, without an overall limit on the number of open positions. | Runs a more realistic portfolio simulation with a fixed total capital and a limit on concurrent open positions. This provides a more accurate performance picture as it cannot take every signal if capital is fully deployed. |
Adaptive Logic: Different Playbooks for Different Markets
A single strategy rarely works in all market conditions. LangArn's key advantage is its ability to adapt. Using long-term Exponential Moving Averages (EMAs), the bot determines if the market is in a bull (uptrend) or bear (downtrend) phase. The Alan07 model takes this a step further by also analyzing if the market is strongly trending or moving sideways, allowing for even greater adaptability.
Explainable & Transparent: No Black Box AI
Our algorithm is not a "black box" machine learning system. Every trade is based on a clear, explainable set of rules derived from established technical analysis principles. We believe in transparency, and our strategy's logic is designed to be understandable, not mysterious. You will always know the technical basis for the signals you receive.
Built-in Risk Management
Profitability is meaningless without capital preservation. Every single trade generated by LangArn has a pre-defined exit strategy. The bot uses a dynamic stop-loss that combines two methods:
- An initial stop-loss based on Average True Range (ATR), which adapts to current market volatility.
- A Trailing Stop-Loss that follows profitable trades to lock in gains as they grow.
This ensures that every position has a calculated risk limit from the moment it is opened.
Have Questions?
We believe in transparency and are happy to answer any questions about our methodology. Reach out to us directly at: panasun.pu@gmail.com