Using grid trading stragey in the forex market may bring the traders really good results. One of the most successful grid forex robot is Volatility Factor 2.0 Pro. I will try to give some details about this grid system.
Forex Robot Review - Volatilioty Factor 2.0 Pro
Volatility Factor 2.0 Pro is grid system. It can open up to 4 orders at a time, of course this may happen only when the first order is negative. This expert advisors is smart enough and have the capability to allow the trader to adjust this numbers. The recommedned minimum account balance for this EA is around $500. Keeping the risk reasonable is also desired, it should be 2% or below. It is capable to make profit really fast, but also this may work against you. So, it is nice to trade with low risk. As you know, trading in the forex market is unpredictable and it is absolutely normal to have losses from time to time.
The latest update of this forex robot has been really successful. They have integrated completely new type of system in the robot which is called "Broker Spy Module".In a nutshell, Broker Spy Module is a system that gives informatin and details about the broker's performance and based on these details the trader may have a clear understanding of the broker's perforamnce. This system compares the initial entry/exit orders taking into consideration of the broker perforamnce. It also provides information about the average order execution delay. This is not all, it gives info about the average spread for all moments in which the robot initiate a trade signals. It is nice to highlight here that this is the performance of the broker, not the robot.
Updating Volatilioty Factor 2.0 Pro
All the updates offered for Volatility Factor 2.0 PRO are for free. So, you do not need to pay additional fees in the future about new versions. When there are new updates you need to download the latest versions and install all the necessary files as described in the USER GUIDE. Make sure to update the lastes version when there are no opened positions.
Volatilioty Factor 2.0 Pro Backtesting
Below I get backtests results which are shared in the official website of the forex robot.
1. Backtest results on GBPUSD with Money Management | Deposit is $2000 | Net Profit: $1 692,312 | Profit Factor: 1.70 | Date: 2010 - 2017
2. Backtest results on GBPUSD with Fixed Lots | Deposit is $5000 | Net Profit: $1 082,859 | Profit Factor: 1.65 | Date: 1999 - 2017
3. Backtest results on EURUSD with Money Management | Deposit is $2000 | Net Profit: $200,070 | Profit Factor: 1.64 | Date: 2010 - 2017
4. Backtest results on EURUSD with Fixed Lots | Deposit is $5000 | Net Profit: $609,339 | Profit Factor: 1.78 | Date: 1999 - 2017
5. Backtest results on USDJPY with Money Management | Deposit is $2000 | Net Profit: $85,902 | Profit Factor: 1.81 | Date: 2010 - 2017
6. Backtest results on USDJPY with Fixed Lots | Deposit is $5000 | Net Profit: $582,492 | Profit Factor: 1.69 | Date: 1999 - 2017
7. Backtest results on USDCHF with Money Management | Deposit is $2000 | Net Profit: $25,668 | Profit Factor: 1.57 | Date: 2010 - 2017
8. Backtest results on USDCHF with Fixed Lots | Deposit is $5000 | Net Profit: $587,109 | Profit Factor: 1.61 | Date: 1999 - 2017
Parameters of Volatility Factor 2.0 Pro
Before giving some tips about the settings of this forex robot (Volatlity Factor 2.0 Pro), I want to give some details from the robot's parameters. Here are the parameters and describtion:
- WinLargeFonts true/false: use "true" to adjust the robot information box display in case you are using the Windows Large Fonts.
- Magic: An unique identifier through which Volatility Factor recognizes and manages its own positions. If you use other expert advisors on the same account, please ensure that each of them has a distinct unique identifier.
Many traders does not understand the importance of Magic Numbers. What is important to find out about it that, an expert advisors knows about there trades by this unique number. When the trader uses 2 or more forex robots in one account, then they have to make sure that the magic numbers of these both expert advisors are different. You are not required to have different magic numbers on all the currency pairs for the same forex robot. We hope you can understand this tiny differnt between 2 expert advisors and currency pairs.
- EA_Comment: You can type a comment here if you wish to mark the Volatility Factor trades.
- Signal_1 true/false: Activates the trading signal, which is generated in the direction of the current market impulse.
- Signal_2 true/false: Activates the trading signal, which is generated against the current market impulse. This signal is generated only in specific hours and this is the only strategy which is affected by the GMT_Offset and the DST_Usage parameters. If you do not want to use this signal you should not worry about the GMT_Offset and the DST_Usage parameters.
- MaxSPREAD: Maximum allowed spread in standard (4 digits) pips. We recommend MaxSpread=2.5 for GBPUSD and MaxSpread=1.5 for EURUSD.
The best about this forex robot is to keep the default values because the developers know the best about there robots and they understand how important is this parameter. If you increase these values and the EA earns small amount of pips this may cause you to make very small profits even more losses than profits.
- Slippage: Maximum allowed slippage in standard (4 digits) pips.
Again, do not change this value. The recommend value is the default one.
- NFA true/false: Use “true” if your broker is NFA regulated, or if you do not want to have hedged trades.
This paramer is important for the traders who trade on NFA regulated brokers. As you know the rules for these brokers are differnt. They do not allow hedging.
- AutoGMT_Offset true/false: Change to false only if you want to use the manugal gmt offset parameter
In some rare cases, it is possible the robot not to detect gmt offset of the broker. Then it is important to set it manually. In order to set manual gmt offset you have to set false for this paramter and then set ManualGMT_Offset the correct gmt offset of your broker. It is important to ask if your broker has winter/summer time. If they have then you have to set winter GMT Offset manually and set DST_USage to true. When you set DST_Usage to true the robot will know that your broker changes time winter/summer. If your broker trade on the same gmt offset the whole year then you have to set false for DST_Usage(no winter/summer time - only one time whole year).
- ManualGMT_Offset in your live trading. In this case, please ensure that you have used the correct ManualGMT_Offset for your broker.
- ManualGMT_Offset: For this parameter you have to set the winter GMT offset of your broker. This parameter is very important in case that you have disabled the AutoGMT_Offset=false and when you backtest the Volatility Factor EA. If you set wrong value, then you may get unexpected results.
- DST_Usage true/false: If your broker shifts the GMT_Offset with +1 hour in the end of March and change it back in the end of October, you should set DST_Usage=true for live trading. This is important for the correct functioning of the second trading system (Signal_2).
- BetterPricePips: Minimal distance, in standard (4 digits) pips, between the initial position and the additional positions. In the Volatility Factor settings, this value is zero, which means that the default value of BetterPricePips is used.
- MaxNegAdds: Shows how many additional positions can be added to the initial position when the price is moving in a negative direction.
- ForceProfit: The average profit for all open SELL or BUY positions, in standard (4 digits) pips, on which Volatility Factor will close all positions by market. In the Volatility Factor settings, this value is zero, which means that the default value of ForceProfit is used. You have information for the default ForceProfit and ForceLoss values in the Volatility Factor HUD (Heads-up Display).
- ForceLoss: The average loss for all open SELL or BUY positions, in standard (4 digits) pips, on which Volatility Factor will close all positions by market. In the Volatility Factor settings, this value is zero, which means that the default value of ForceProfit is used. You have information for the default ForceProfit and ForceLoss values in the Volatility Factor HUD (Heads-up Display).
Here it is how ForceLoss works. Let's say we have 5 open positions. In total we loose 1000 pips and for ForceLoss is set to 250. ForceLoss is avarage loss from all the open positions. In our case we have 5 open positions:
avarageLoss = 1000/5
avarageLoss = 200
Consequantly, ForceLoss will not close the positions because it is set to 250 > avarageLoss.
If the loss is 1500:
avarageLosst = 1500/5 = 300
ForceLoss(250) < avarageLoss(300) then close the positions
- FixedTakeProfit: A fixed TakeProfit level in standard (4 digits) pips, which is identical for all open SELL or BUY positions. In the Volatility Factor settings, this value is zero, which means that FixedTakeProfit is not used. This allows your exit levels to be hidden from the broker. You can use FixedTakeProfit by your estimation.
ForceProfit - The average profit for all open SELL or BUY positions on which Volatility Factor will close all positions by market. In Volatility Factor settings, this value is zero, which means that the default value of ForceProfit is used.
FixedTakeProfit - A fixed TakeProfit level which is identical for all open SELL or BUY positions. In the Volatility Factor settings, this value is zero, which means that FixedTakeProfit is not used. This allows your exit levels to be hidden from the broker.
- FixedStopLoss: A fixed stoploss level, which is identical for all open SELL or BUY positions. In the Volatility Factor settings, this value is zero, which means that FixedStopLoss is not used. In this way, your exit levels will be hidden from the broker. Use your judgment to decide when to use FixedStopLoss.
Lets say we have 3 open trade. The first open trade is negative and it loses -80 pips. For example by default the robot has 100 pips FixedStopLoss for GBPUSD. When the initial trade loses 100 pips or more than 100 pips all open trades will be closed. In our example our first trade loses only 80 pips and therefore the robot will not close all open trades.
- CloseOnlyOnProfit true/false: when this mode is enabled, positions close to system signals only, when they are in profit (MinProfitPips), or where stoploss may be reached. If CloseOnlyOnProfit= false /default/, positions close to system logic even it is on a loss.
- MinProfitPips: The minimum average profit in standard (4 digits) pips, on which Volatility Factor will close all positions by system exit signal, when CloseOnlyOnProfit is true.
- UseCustomPair true/false: if you wish to use Volatility Factor EA on an unsupported currency pair, change UseCustomPair=true. This way you will be able to test and use the robot on other currency pairs than the default supported (GBPUSD, EURUSD, USDJPY and USDCHF).
If you use supported currency pair you do not need to use these parameter because the supported pairs are configured to work by default.
- UseSettingsFrom: if you wish to use Volatility Factor EA on an unsupported currency pair, with this input parameter you can choose, which supported settings you wish to use. At the moment you have four possible choices – GBPUSD, EURUSD, USDJPY and USDCHF. It is not necessary to change this parameter if you use some of the supported currency pairs. This parameter works only when "UseCustomPair=true".
- RecoveryMode true/false: When RecoveryMode is activated, an algorithm effectively compensates current drawdown through smooth increases of trading volumes. This mode is active only when AutoMM is greater than zero (AutoMM > 0). Before activating RecoveryMode, please bear in mind that it can significantly increase risk to your account. For this reason, RecoveryMode ought to be used at low values of the AutoMM parameter: AutoMM =1 or lower.
- FixedLots: The extent of the fixed trading volume. If you use AutoMM>0, the value of the FixedLots parameter does not matter.
- AutoMM: Automatic risk management activates at values greater than zero:
- AutoMM_Max: The maximum permitted risk expressed as a percentage of the account per individual transaction, calculated on the basis of a 100-pip loss. This parameter concerns the RecoveryMode only.
- Avoid_News true/false - if you wish to use the news filter function, you should set
- Include_Medium_News true/false - if you wish to avoid the medium impact news too, you should set Include_Medium_News=true
- Wait_Before_News - the number of minutes before the news event, during which trading will be switched off
- Wait_After_News - the number of minutes after the news event, during which trading will be switched off
Following the guidance of the developers is the best. Stick to there suggestions and recommendations in order to have better results.
SUMMERY - Forex Robot Review - Volatility Factor 2.0 Pro
In conclusion to this article, I want to repeat couple of things about this EA. Volatility Factor 2.0 Pro is really successful EA but if you know how to use it. Trading with low risk and being patient is very important, because there could have losses from time to time, even if they could be big, this should not discourage you. As it could lose as can make profit very fast. Using the default values with reasonable risk and recommended pairs is very important.
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