With the latest updates to iDRAW, we can now use trendlines to close the ForeGrowthBot positions. Why would we want to do this? The main reason is that this highly profitable EA only works by following momentum. Therefore, if the momentum burst does not continue the FGB EA will eat up your profits, but not any more.
How Forex Growth Bot Works
The FGB EA enters once a burst of momentum is confirmed and enters in the direction of the burst/spike. This strategy has proven to be successful in the long term as currency trends often continue in the same direction for long periods of time. However, there are a several months (Three to be exact) during the year where this strategy wasn’t profitable. As a result, we can manage the open positions to close the losses out sooner and catch the reversal of the momentum spike (fading the spike – similar to the strategy of Million Dollar Pips, but on a longer term agenda).
Recent Live Trades
The last two trades taken from FGB were small losses that could have been longer term gains if held longer. However, there is nothing we can do about the FGB closing these trades at a loss, but we can surely use the Signal from the EA as an indicator to trade longer term in the direction of the signal. Since, its a trend following system this is vital. Furthermore, we can use iDRAW to decrease the pips at loss and make some extra pips when the FGB does fail. Below, I’ve outlined where the Bot enters its trades ( Horizontal/Vertical Axis) and where the Bot closed the trades at a Loss ( Red X ).
Guide the Trend with Trendlines
Now, the easiest method to turn these losses into smaller losses are to use Trendline as guidance for support and resistance levels which are perfect indications of reversals. Below I’ve outlined how we can use simple trendlines to close the FGB trades early and take the other side ( reversal).
iDRAW manages Forex Growth Bot trades
Now by using iDRAW to manage the open positions from FGB we would use a M5 Timeframe since FGB opens the trades on M15 Momentum bursts. We use a trendline to trail the momentum, and if the momentum falls short of making us a profit, we catch the reversal after closing the FGB trade early. In the example above, we would use these trendlines as Trailing StopLoss function with iDRAW and then enter a Short Position for the temporary Selloff. A little secret to all the trendline traders: We don’t need to use Highs and lows, as the only vital trendline break. The market moves in waves. It goes up and what goes up must come back down. The market is extremely efficient and cleans up all the buy and sell orders along the way. Therefore, by avoiding a larger loss on all your trades use a simple trendline above and below the current momentum and profit on each wave. Now since, FGB continues to be profitable long-term, these signals are still invaluable. If the EA tells you to go LONG, do it. Use Trendlines to guide your journey.
We would use a trendline as support ( The trendline connecting the higher lows). This trendline would also be the reversal point and trailing stoploss for your Long Positions. Now since FGB normally cuts its losses rather quickly, this lower trendline would be used for your long positions opened with iDRAW. You can also use this trendline to close out the FBG if FGB didn’t already do so at the Red X. The FGB EA gave us two Buy signals within 1 day and these signals are telling us that overall momentum is long. Use these signals with your longer term analysis. We can use iDRAW to enter Long Positions at each new Wave Cycle.
How to use iDRAW to manage the open positions from Forex Growth Bot?
All you need is the magic number that is used when FGB opens a trade. With this value, iDRAW can find and manage this trade. From my research the magic number is #4826809
What is iDRAW?
Click here to learn more – We also offer a free version for testing!
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