Forex Growth Bot takes the trader expression “cut your losses short, let your profits run” really serious, which runs only on EURUSD M15.
The entry is based on a volatility indicator which runs on two different periods. When the volatility is changing, a trend is considered to have started and the EA (EXPERT ADVISOR) will open a position. From here, every of the mojo stays in position management that is, if the market goes against it, the position will be promptly closed with an average loss of 30 pips and the EA will wait for other transaction to take place. If, however, the market moves in the precise direction, it start to add to the existing position until it reaches up to 5 times its initial size. Sometimes the market will backtrack and the positions will not always run their course, but when they flow, they do so nicely.
During the course of such a basket of positions, the EA will close some of them and open othersoccasionally. Forex growth bot is a bit of a black box, but it works quite well both in back testing and in forward testing.Overall, the win ratio is only about 40%, but this is more than compensated by the fact that the average profit trade is more than twice bigger than the average loss trade. It is the very definition of a trend-following robot.
It is notable that the bot opens and closes its positions only at the start of each bar and that it does not send a stop loss andtake profit target with each order. The take profit can be a minor advantage if your broker’s out to get you, but it can also be a hindrance if your internet connection goes down or if your VPS crashes.
When it comes to configuration, it can easily be called lackluster. It lacks all the bells and whistles that other EAs shower you with. There are 3 parameters for controlling the volatility settings which should not be touched unless you want to optimize it for a different pair and timeframe.Running it on EURUSD M15 is recommended, but it can be run on other pairs as well so feel free to experiment. Regarding the position sizing, you can input the number of lots manually and the manual states that you should use 0.01 lots for balances lower than $250 and 0.1 lots for balances above $2000. However, it is advisable to use no more than 0.1 for each $5000 in your account (this translates to 0.02 lots per $1000), perhaps going as low as 0.01 lots per $1000 balance, this depends on the drawdown tolerance.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.