Forex Growth Bot Logo
Price: $129

Forex Growth Bot

Added on May 2, 2012 12:26 AM
(4 / 5)
Trading style: volatility trader
Currency pairs: EURUSD
Time frame: M15
Money-back guarantee: 60-day
NFA compliance: Yes
License: 1 real account

Forex Growth Bot is a short term trending EA that trades the EUR/USD pair on 15 minutes time frame. Here is a detailed review for it made by the Forex Monitor team:

The Strategy Behind the EA

The EA is primarily based on volatility indicator. The indicator runs on 2 periods - one smaller and the other faster. So, when the indicator shows a change in the volatility, the EA takes it to be an indication of the onset of a trend and opens a position. After this point, the EA works on the premise of position management.  If the market moves in the direction of the open position, it keeps on adding to the current trade phase wise, till the investment is 5 times that of the original trade. Generally, the forex EA takes 60 to 100 pips.  If the market goes against the trade position, it swiftly closes the position, generally taking a hit of 30 pips on an average and begins to hunt for a new trading opportunity.

The highlight of the Forex Growth Bot is lies in its position management capacity. Although it’s winning ratio is around 40%, it’s algorithm to add to profitable trades works well and thus, the average profit it captures is more than double of the losses, thus giving you an overall profitable position.

Quite frankly, there’s not much to the strategy or at least the strategy is not described, but it did give decent results in both back testing and forward testing.  The Wave stop strategy is based on the Elliot wave and nothing much is explained about it, however, the EA rides the trends fairly well, giving good results.

How the EA trades?

This EA is a frequent trader. On an average it picks up more than 1 trade a day. The website mentions up to 10 trades a week.  The EA picks up trades during all trading sessions, if the indicator signals a trading opportunity. Most of the trades are closed within 24 hours, but a few may span over 2 to 3 days. The EA trades on EUR/USD time frame, although you can use it to trade other pairs too.

The Forex Growth Bot is compatible with both MT4 and MT5 platforms.

The point of worry here is that the EA does not generate take profit or stop loss with the order. Now, that means if you have connectivity problems while your order is still open, you may stand to lose if the market moves in the opposite direction.

To make the EA Fifo compliant, you’ll need to enable the “Fifo Compliant” feature manually. It follows the ‘no hedging’ rules nevertheless.

The website page http://forexgrowthbot.com features a live account, which it says is third party verified and also back testing results.

Forex Growth Bot EA Parameters

The parameters are almost bland. You can adjust the lot size manually- that’s all it has for the money management. The other 3 parameters allow you to set the volatility parameter. However, unless you are an experienced hat and want to optimize the EA for other timeframes and currency pairs, it is best to leave the volatility parameters as it is.

Forex Growth Bot: The Advanced EA

You can also buy the advanced version of the Forex Growth Bot. The advanced version offers several flexible settings such Wave Trailing and many more. However, the manual doesn’t speak much about the optimal range to be used for these. So, if you are an amateur, the advanced EA is not for you.

The experienced traders can make use of the advanced features such as the “Reinvest Capital” option which allows the users to increase the lot size by 0.1 every time the profit touches $4500!

Back Testing Results

Forex Growth Bot banked an average of 55 pips, while the losses averaged at almost 50%- 27 pips. Thus, the EA gives a fantastic risk to reward ratio of 1:2

                                                              5 Year Re-Invest Power Back Test                                                                     5 Year Basic Back Test

 

                                                               3 Year Re-Invest Power Back Test                                                                   3 Year Basic Back Test

 

                                                               1 Year Re-Invest Power Back Test                                                                    1 Year Basic Back Test

 

Forward Testing

The EA performed surprisingly well on forward testing.

 

Vendor Forward Test                                                                                                             Forex Monitor Forward Test

 

Salient Features of the Forex Growth Bot

The highlights of the Forex Growth Bot are as under:

  • The lot sizes are in direct proportion to your account size
  • It works on stealth mode, which means your broker will not be able to see your take profit and stop loss.
  • It allows you to reinvest your capital
  • The risk to reward ratio is 1:2, which is quite favorable.  Stop losses are in the range of 20-30 pips, while take profit is in the range of 60-100 pips
  • Even though it takes under 40% winning trades, because of the better risk to reward ratio, you’ll still end in profit.

What you should be aware of?

Avoid trading with the EA on first Friday of every month as the NON Farm Payrolls get announced on this day.

One of the major drawbacks of the Forex Growth Bot is its inability to take charge of its previously opened trades. So, if you want to restart, you’ll have to manually close all your trades or wait for the EA to close them. Now, this could pose a serious problem in case you have a server problem or your internet connection goes bad.

Price, Bonus, Guarantee

The Forex Growth Bot is being offered at $129.  In addition to the EA, you get an Forex Growth Bot Income Accelerator Indicator as a Bonus.  A full 60 days Money back guarantee is offered with the Forex Growth Bot.

Conclusion

When you open the official Forex Growth Bot website, you won’t see an overhyped sales pitch, which is what I liked about the EA in the first place. Although there are very few features offered by this EA, I can say that Forex Growth Bot is a great trending EA. I consider the winning trades ratio of 40% to be quite good, as most of the trending EAs will give you winning trades within this range. The best part of this EA is its favorable risk to reward ratio. With its solid compounding strategy on winning trades, you can accumulate larger profits (up to 5 times). It’s wave trailing stop ensures that the losses remain restricted within the small range.

You may occasionally face long bouts of losing streaks, but the EA is profitable in the long run. For a small price of $129, Forex Growth Bot is every penny worth it!

Important thing to keep in mind is that you must refrain from trading with this EA on the first Friday of every month, as the Non Farm Payrolls data gets released on this day. Make sure that all your trades are closed before you restart your machine. If you have persistent network problems, then try a better service provider.

To sum up, Forex Growth Bot is a good trending EA that trades the EUR/USD pair primarily. The EA gives good results on default settings. The experienced traders can tweak up their settings, however, do not do this unless you are fully aware of the implication each of the settings would have on your trades.


Clicky