Forex Growth Bot

[rsmereka]

This review is about the Forex Growth Bot which I purchase from here. I have no affiliation with anyone in conjunction with this review.

I purchased the basic version for now. There are two other versions which add more features. I may consider the power version later.

Forex Growth Bot (or simply FGB) is a trend trader that trades the M15 EURUSD chart. The author says that other currency pairs are possible but this would require the more enhanced version of this EA.

Being a trend trader, the risk:reward is very good at somewhere in the neighborhood of 1:2. Also being a trend trader, the EA can enter periods consisting of months of flat activity or drawdown (closed trade, not floating).

I placed this EA on a EURUSD M15 chart and set the lot size to 0.06. The basic version of this EA has no MM (fixed lots only) and I am going to use the formula 0.01 (one micro) per $500.
Link: http://www.myfxbook.com/members/rsmereka/forex-growth-bot/198691


Rick

[Merrygoround]

My honest opinion about this bot... it scares me. I am afraid of running it with a normal lotsize. Look at the official myfxbook. There are months with only losing trades. I cannot stomach that kind of development on my account. So I consider it a nice bonus if it wins with small lotsize, but no more.

[Alex1981]

Hello,

I'm totally new here. I have a question that may sound stupid :

How do you plug your robot to your forex broker plateform? I mean, I have french bank and really don't see how the robot could make automatic orders with my account. (It's Keytrade Pro, if anyone knows...)

Idem, How do you plug the robot so that the robot has access to the live exchange rates?

Thank you!
Alex

[rsmereka]

Originally Posted by Merrygoround

My honest opinion about this bot... it scares me. I am afraid of running it with a normal lotsize. Look at the official myfxbook. There are months with only losing trades. I cannot stomach that kind of development on my account. So I consider it a nice bonus if it wins with small lotsize, but no more.

This is the nature of all trend trading EA's. It's a well known fact that the market is not trending about 85% of the time. This is why most trend trading systems have a win rate less than half.

After analyzing the official MyFXBook account, I am fine with the performance. It's better than most trend traders that can have DD periods into the years instead of months.

When trading with trend traders, the key is the account exposure. No more than 2% per trade.

If you can't stomach the number of losses, I guess trend traders are not for you.

Rick

[rsmereka]

Originally Posted by Alex1981

Hello,

I'm totally new here. I have a question that may sound stupid :

How do you plug your robot to your forex broker plateform? I mean, I have french bank and really don't see how the robot could make automatic orders with my account. (It's Keytrade Pro, if anyone knows...)

Idem, How do you plug the robot so that the robot has access to the live exchange rates?

Thank you!
Alex

Hi Alex and Welcome,

Forex trading with expert advisors (EA's, robot's, or simply bot's) are traded using the Metatrader platform primarily. There are other platforms on the market but I think I am safe by saying that Metatrader is the most used.

I think you need an introductory course in using MetaTrader and attaching the EA to a chart. This course will give you the basic information that you need.

I would also suggest the BabyPips.com site for general Forex information.

Rick

[Merrygoround]

Did you notice what happened today? FGB opened a couple of perfectly good trades, but failed to take profit in time. That is the story of FGB (basic version) in a nutshell. I am going to experiment with a trade copier on my VPS, to add a trailing stop.

[rsmereka]

Originally Posted by Merrygoround

Did you notice what happened today? FGB opened a couple of perfectly good trades, but failed to take profit in time. That is the story of FGB (basic version) in a nutshell. I am going to experiment with a trade copier on my VPS, to add a trailing stop.

No I did not see what happened. That's why I am involved with automated trading, so I (supposedly) have no need to watch. I don't blame FGB. No one knows where the price is going to go. Close the trade and end up with pips on the table, don't close the trade and end up losing. If FGB puts a tight control over the profit, the really big wins that FGB is famous for will be lost. Anything over about 30 pips will retrace. In a backtest (which does not mean much) over at Birt's Review, the so-called power version did a bit better on exits than the basic. As I mentioned previously, I may spring for the power version if I think it will be worth in the end.

Speaking of trade copiers, I found a free trade copier at Mt4i. They have two versions, a local one that copies from one MT4 to another on the same computer and another one that sends the signals across the Internet. No idea if they are any good. I downloaded the local version. I have another pet idea about Hacked. I think I am wasting my time but I'll check it out anyway.

Rick

[Merrygoround]

The local Mt4i copier is the one that I am using. It is the best free copier available on the market, and IMHO it has more features than comparable commercial ones. But sometimes I have to restart it, because the copier thinks that my equity has dropped below critical and after that it does not copy trades anymore. Maybe it is a bug.
Also, I noticed that it does not allow to add a trailing stop. Maybe I have to switch to an EA like Swiss Army knife, although I have no experience with that.

[deathlord]

Originally Posted by rsmereka

I don't blame FGB. No one knows where the price is going to go. Close the trade and end up with pips on the table, don't close the trade and end up losing. If FGB puts a tight control over the profit, the really big wins that FGB is famous for will be lost.

The thing is, that even the bigger wins are not really that big, and compared to those the smaller wins are way too often in good profit and then the market turns and at the end you are lucky if you got out at break even point . FGB is profitable over all, but I am not really sure that the way it currently is (not) handling profits is actually better than managing those.

I have tested the basic version together with a SL EA, but I wasn't really getting any good results. Keep us updated if you have any luck finding some good settings for it. I am currently running the power version without additional S/L. I am still trying to figure out how exactly the wave trailing thing works. At least it didn't save me from losing yesterday, after being nicely in profit.

[rsmereka]

Originally Posted by deathlord

The thing is, that even the bigger wins are not really that big, and compared to those the smaller wins are way too often in good profit and then the market turns and at the end you are lucky if you got out at break even point .

If you think that the bigger wins are not really that big, you have not performed a proper analysis on a long-term live account. Average win 80 pips, average loss 40 pips. That's 2:1 dude. Max win is something like just over 200 pips. True, the win rate is about 42% overall with periods where the win rate drops a lot. The win rate on my demo right now is a sucky 17%

I'll keep repeating this until people are tired of hearing it. All trend following systems have these characteristics: low win rate (usually < 50%), very high risk:reward ratio (typically 1:1.5 or higher), long periods of closed trade DD (in the case of FGB it's in months, in the case of some other trend following systems (like the Turtle method and the EA's at Asirikuy) it's years.

Rick