This is a final article in the series telling about the set of three advisors from Vlad Gilka. If you have read the previous two articles, you may have realized that this one would review Forex Magic Range EA.

This robot, if compared to its rivals, is not unique but based on the volatility breakdown strategies – the most basic ones, without indicators and regression calculations. The author recommends using it on major pairs, and this is correct, because the spread won’t allow using such a strategy with many crosses.

Before considering the mechanism of deals, we would list the main settings the Forex Magic Range operates on:

• BarsCount: number of bars to calculate the range;
• Range: limit in pips per correct range width;
• TimeFrame: working timeframe;
• Level: value of take-profit, stop-loss, and step for a reversal order;
• Ord_Lots: lot size of each order in a series;
• OrdersCount: number of orders in the series (can’t exceed 10).

On the first stage, the Forex Magic Range analyzes range with a given length (BarsCount parameter). The price extremes in this sector are identified in the process, which will be the basis for determining the boundaries of the range. On the second stage, the Forex Magic Range EA makes a deal on breakdown of one of the boundaries. To confirm the validity of the breakdown, the closure of the last two bars is taken into account, one of which must be closed within the range, and the second beyond it – respectively, the opening price of the order will be the closing price of the bar beyond the boundaries.

Such refinement of an entry point is meaningless, since only the last bar is important in any case, and the one prior to it will always be within the range. Stop-loss, take-profit, and reversal limit order are placed after the deal on the level of a stop in the first deal.

Conclusions and recommendations: how to use the Forex Magic Range EA

From the moment of the first reversal, the robot normally starts to siphon, because a large number of limit orders (without specific signals) on the market catches the aggregate position in the trap. The robot’s inability to pull out the chain of losing orders without Martingale further exacerbates the situation.

If you consider the fact that the EA is quite decent (written in 2010), and no live monitoring of a real account is freely available with this robot, the conclusion suggests itself: either it has been a siphon from the very beginning (and therefore the author didn’t bother to create a monitoring), or all accounts for the past four years have been siphoned due to market changes.
If we consider the above said, the conclusion is obvious: the algorithm under review is the most unfortunate option of the whole package from this author, but you should not pull the plug on it, since you can adjust the number of orders in the series and use the following strategy. Only two orders should be used in trading: the initial one and just one limit, while they should be of the same size, without multiplying. This method allows using volatility breakdown and minimizes the effects of false range limit breakouts. Of course, the “Level” parameter should be chosen on the basis of average daily pair volatility and statistics of signals work out.