Volatility Factor EA Custom Settings 3

August 22, 2014

Here we have tried to comobine increasing the number of additional positions and avoiding some dangerous hours. We also use different distance between the additional positions. These settings are not recommended for small accounts. The robot trades only on GBPUSD currency pair. Please continue reading below.

 

Volatility Factor EA Custom Settings 3

  • CloseOnlyOnProfit = true
  • ForceLoss = 500
  • MaxNegAdds = 5
  • BetterPricePips = 30
  • FixedLots = 0.1
  • MondayHoursForbidden = 8,9,10,11,12,16,17,18
  • TuesdayHoursForbidden = 8,9,10,11,12,16,17,18
  • WednesdayHoursForbidden = 8,9,10,11,12,16,17,18
  • ThursdayHoursForbidden = 8,9,10,11,12,16,17,18
  • FridayHoursForbidden = 8,9,10,11,12,17,16,18,22,23

 

Settings explanation

CloseOnlyOnProfit: When enabled, the robot closes opened trades only in two cases. The first case is when the total profit of all opened trades is greater than 0. In the second case, the EA would close the trades when the stop loss level is reached. The latest versions of the robot have low stop loss levels. For that reason, we have increased the ForceLoss parameter here. To accomplish our goal in the current case, we have also enabled CloseOnlyOnProfit.

ForceLoss: Thanks to this parameter, you can set your own stop loss level. By increasing the value of this parameter, you also increase the chance of closing all trades on profit. Since the Forex market is too volatile in most cases, there are big movements. By increasing this parameter, we aim to avoid these big movements and give the robot a chance to close the trades on profit when the quotes get back to normal levels. Bare in mind that increasing this parameter also increases the risk for your account. In the current case, we have set ForceLoss=500, which is quite a high value. However, this gives us a margin to hold our positions when big movements occur.

MaxNegAdds: This parameter controls the number of additional trades opened for compensating negative ones. It is a very useful feature. Theoretically, if we set an extremely big number as value, the robot will certainly close trades on profit at certain period of time. However, doing this requires higher account balance, otherwise we may lose our account. In the current case, we have set MaxNeGAdds=5, which means that the robot may open up to 5 additional trades and not exceeding a total of 6 trades at a time on specific pair.

BetterPricePips: This parameter define the minimal distance, in standard (4 digits) pips, between the initial position and the additional positions. We found out that BetterPricePips=30 in combimation with the other settings provides better results. If the value of this parameter is lower, then the robot would open all its additional trades earlier - this will reduce our chances for compensating the losing trades. If we go the opposite way and set a higher value, then we may miss the correct time for opening an additional trade, especially when the market ranges. If this happens, the next station will be hitting the stop loss and we do not want this.

FixedLots: We have used fixed risk for this account but we can always enable the money management system, if we decide to. Don't forget tha the trading risk is very important since it determines our profit or loss. Every trader should make a choice of his/her own about it. We do not recommend trading with risks higher than 5%.

Time Management: To reduce the risk to minimum, we have forbidden the robot to trade during specific periods of time. In our tests, we have found out that the following hours 8,9,10,11,12,16,17,18 (GMT +2) are potentionally dangerous for trading. Of course, other hours can be avoided as well. Of course, forbidding more hours leads consequently to lower trading activity - do not forget this.

 

Additional instructions

The aforementioned settings are very good but they would work in 99% of the cases. Since the market is too volatile and unpredictable, a strategy may always fail under specific conditions. For that reason, we always need another plan. What could we do when the price drops or increases all of a sudden? Here are some additional suggestions for the above-mentioned settings:

- Increase the value of MaxNegAdds: this should be made with small steps. Wait until you find out whether the market price will continue to move in the opposite direction. When you are sure that the market has cooled down, increase MaxNegAdds by 1. If the price continues to move again to the wrong direction, you may increase the value again but be always cautious!

- If the price jumps or falls suddenly, you may increase MaxNegAdds by 1 and increase the trading risk two or three times. This way, with small movements of the price, the last trade would compensate the precedent losing ones and you may consider closing manually all the trades. We suggest manually because the robot calculates the profit in pips, not in money.

We shared here a few options how to act in extreme situations in order to compensate losing trades. Be careful what you do and always follow your accounts!

 

IMPORTANT: The instructions explained above are experimental and a bit risky. We do not recommend them to traders without much experience. Everyone is free to use these settings at his/her own discretion.

Comments (0)

Post a comment

Disclaimer U.S. Government Required Disclaimer – Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Clearly understand this: Information contained within this course is not an invitation to trade any specific investments. Trading requires risking money in pursuit of future gain. That is your decision. Do not risk any money you cannot afford to lose. This document does not take into account your own individual financial and personal circumstances. It is intended for educational purposes only and NOT as individual investment advice. Do not act on this without advice from your investment professional, who will verify what is suitable for your particular needs & circumstances. Failure to seek detailed professional personally tailored advice prior to acting could lead to you acting contrary to your own best interests & could lead to losses of capital.

*CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

By using FXAutomater's products, you acknowledge that you are familiar with these risks and that you are solely responsible for the outcomes of your decisions. We accept no liability whatsoever for any direct or consequential loss arising from the use of this product. It's to be noted carefully in this respect, that past results are not necessarily indicative of future performance.