In this post I will be reviewing the Volatility Forex Robot that has been developed by the team at Forex Robot Traders and runs in the free to download and very popular MetaTrader 4 (MT4) trading platform that is available by most forex brokers across the world.
I would personally use a true ECN forex broker which can help lower my trade costs and give good bid / ask prices with the amount of liquidity they have. As with any forex system, the Volatility Forex Robot will most likely perform best with low spreads, low slippage and low commissions.
The Volatility Forex Robot is fully automated so it will do all of the trading for you, just use sensible lot sizes and do not over leverage your account to avoid a margin call / stop out.
The Volatility Forex Robot is suitable for any level of trader from beginners to the more advanced with easy to follow setup instructions provided by the developers.
Volatility Forex Robot Trading Strategy
The Volatility Forex Robot uses channel breakouts in an attempt to identify and take optimal trades on any currency pair that you wish to run it on.
It aims to battle and win against market volatility and I would personally use it on the more liquid currency pairs such as the EURUSD & GBPUSD for lower trading costs.
The Volatility Forex Robot uses the SAR technical indicator to built channels that it then analyses for breakout trades to try and catch market moves.
The Channel Stop that the Volatility Forex Robot uses can adapt to current market conditions since it changes with the trend and volatility.
The Channel Stop is usually further away from the market in times of high volatility and strong trends, whilst being closer to the market when there is lower volatility and less trends.
This stop is also based on the logic that the Volatility Forex Robot already knows that a breakout of a significant highest high or lowest low will often signal an important trend reversal.
One of the advantages of using a stop determined by the Average True Range (ATR) is that it is adaptive to current market conditions.
The distance from the entry point to the stop can increase when there are periods of high market volatility and decrease in periods of lower market volatility.
The Volatility Forex Robot uses the ATR and SAR to try and avoid being whipsawed out of “noisy” markets.
Volatility Forex Robot Back Testing
There are no back tests shared by the Forex Robot Traders team on the official Volatility Forex Robot website. I would use Bits Tick Data Suite (Birts TDS) to back test the Volatility Forex Robot with 99% modelling quality using real tick data, real spreads, real commissions and real slippage. This would also help to decide the best currency pairs and time frames to run it on and give an idea of the historical performance but of course would be no guarantee of future performance.
Volatility Forex Robot Live Results
Volatility Forex Robot Summary
The Volatility Forex Robot is a complex automated forex system that uses a combination of technical analysis that could take some time to master and study on your charts manually.
I would start on an MT4 demo account to begin with until I became familiar with the EA although keep in mind that demo account conditions can vary greatly from live account conditions due to the different price feeds and liquidity.
The Forex Robot Traders team share some results on the official Volatility Forex Robot website although I believe they should include a link to myfxbook or FX Blue for the results to be verified for potential users to review and compare trades with.
I have conducted many forex robot reviews and there are other alternative automated trading options that I would consider over this EA.
The Volatility Forex Robot comes with instructions, updates, support and a money back guarantee. It should be noted that there are no guarantees on how any system will perform and historical results are by no means an indication of future performance.