How The Best Forex EA Bot Works

Alan Solar Share, the passive income guru, in this video tutorial explains to you how the bot works.

Right? So we give you suggestions on what currencies to trade. So I'm trading a $1,000 cent account and I've got my three different currencies that the bot is trading, which is Euro JPY, pound yen and the Euro US dollar, okay? So let me just open up a chart and let me expand it so that you can see exactly what's going on. Okay, so basically the bot is trading of a. It's using the last 20 candles, okay, the closeout price on the last 20 candles, okay, to make a decision. And it's also working on some other mathematic formulas to base its trades. Now, occasionally the bot will go in the opposite direction of.

What the currency is doing. So in this case over here, the euro yen or the pound yen.

The price of the currency is actually increasing and the bot has decided to sell, okay, rather than buy. So let me just increase the. Enlarge this over here and you can see that the price is actually going up and up and up and it seems to have stopped over here and unfortunately couldn't record it. I got to my computer a little bit late and what's happened is, is that if you look at the history, all the pound, all the, the pound yen pairs have closed out, okay? And as you can see, there's quite a lot of those pound yen pairs, okay, so now what bot operates as follows, okay, as you can see in the top over here, it has decided to sell instead of buy. And the initial trade is a 0.15 lot. That is the lot size, that's the amount of currency that we've asked the bot to buy. Now, if it's made a wrong decision, okay, and the currency keeps on going up, the bot will then take another trade, okay? It will either hedge, which means that will sell the currency, or if it strongly believes that it is a still a sell, it will then do another trade at a cell, okay? So the next trade that it takes is 1.5 times the amount of the lost trade. So the Last trade was.15. So if you take 0.15 and you divide it by 2, you get 7.25, okay? 0.725. So if you take 0.1 5. So let's do this over here. Let's get a calculator. So 0.15 divided by two, okay, is equals to 0.75, we're going to memory plus that and then we're going to take 0.15, 0.15, and we're going to add the point 0725 to that lot size and we're going to get a figure of.225 and that and it's going to be rounded off to 0.23. And that is what the next lot size is that it takes. Now, if it still is going in the wrong direction, okay, the bot will then buy again at 1.5 times more than the previous transaction, which is.23. So let's just clear the, clear the calculator. So we're going to say point two three divided by two equals, okay? And then it is 0.2 3.23. And then memory plus memory recall is plus point three five, which is this transaction over here, okay? And it's going to carry on doing that until what will happen is, is that at the bottom here you can see that it eventually bought a.

Four lot, okay? Four lots of GBP jpy. Now, the currency fluctuates up and down. It goes up and it goes down. And eventually what will happen is, is that the lot size will be large enough. As you can see over here, this lot size over here was a four. And when it came down a little bit, okay, the four plus the two over here, when these two trades came down just a little bit, okay, it was the correction in the price of the pound yen, okay, because the price goes up and down all the time. So it's selling, it's selling, it's selling. And eventually the price corrects. And when it corrects, these trades go into positive. And these positives outweigh all these negatives here, okay? They outweigh all these negatives. And, and what will happen is, is that the positive will outweigh the negative and then all the trades will close out, but you will make a profit, okay? Now if this was a micro account, the drawdown would have been quite, quite substantial. Now, the drawdown, what that means is it's the amount of money that you have involved in Europe in, in the trades at the moment. So as you can see at the top here, I've got minus 2860. This is cents. So it's actually to get it to dollars, you move the decimal place two places to the left, which means that I've actually got $31, okay, involved in this trade, okay? So it says here 106,897. That's sense. To get it to dollars, you move the decimal point two places to the left, which means that I've got $1068. Okay, now to work out the drawdown, you take this figure over here and you divide it by this figure over there. So let's do that together now. So let's just take it at 2,880 approximately divided by 106,897 is going to give me a figure and that's the percentage. And if I times that by 100 will bring it to percent. And it says that I've got 2.69% of my money is involved in trades. Okay? Now anything less than 40, anything less than 40% of your equity being used in the bot is fairly safe. Okay? When you get to your equity being minus 40%, we've got some measures in place where you pause the bot or you can make some corrective decisions on what you need to be doing with regards to your account. Okay? So minus 2%, minus 3%, minus 10%, nothing to worry about. We had some accounts in minus 14 and minus 16% today, and a lot of them have closed out in positive. Some of them are waiting still for the currency to correct. A little bit more may go up, but then it'll come down and eventually everybody's accounts will land up in positive figures again. Now to see your drawdown on MT4 on your VPs, all you need to do is you log into your VPs and you can click on any one of the graphs. Okay? If you're seeing the three graphs like this.

This basically this window over here, what it does is it aligns your graphs. Now, to see one of the currencies, you just double click on the tab over here and it'll tell you what your current drawdown is. And it says here 2.93%. So it's basically exactly what I told you. We just rounded it off to two smaller numbers. Okay? So nothing to worry about now. Now you understand how the bot works, okay? Sometimes it hedges and somet it doesn't. So let's show you. Maybe I've got some hedging. Some hedging. No, I don't, I don't have any hedging. A hedging is basically so it, basically it'll buy or sell. So let's say it bought, okay? And it bought in the wrong, wrong direction. Sometimes the bottle see that it's done the incorrect thing and it'll place a trade one and a half times bigger than the last trade, but in the opposite direction, which will be a sell position. Okay? And if you don't know the difference between buying and selling, you Just watch a video on the Internet, on YouTube explaining what a buy position is or what a sell position is. Nick will give you a better understanding about that. That's not what this video is about. This video is just to explain to you what the bot does, how it does it, how it trades and how you make a profit. And when you see on the history side, you see a lot of trades in negative and a lot of people are saying to me, why does the bot close out these trades in negative? Well, what it does is, is that when it buys, okay, it bundles all the trades together, okay? Basically makes the stop losses very close together and it makes the take profit exactly the same. So as you can see on my screen, let me just organize this in symbols. If you click on any one of these rows, it'll, it'll arrange, it'll arrange.

This, this, display this report. Okay? So we want to check all the Euro JPY. So as you can see, the Euro JPY's were boug at different times in the day, okay, for different amounts. But as you can see here, okay, the take profit is exactly the same. So what the robot does is it basically connects all these trades together. So when the last two entries, okay, being probably the last two large amounts, which will be the 2.7 and the 1.8, when these two trades go into positive, we're waiting for, for this trade over here, the 1.8 trade, which is minus $1 now plus $3. When, when these two trades go into a massive profit or when it supersedes this profit, this loss over here, all these trades over here will close out together. Okay? So basically locks all those, all those currencies together so that two or three will be in positive, the rest will be a negative. But overall your trade will end out with a positive in your, in your balance. Okay? So I hope that explains how the bot works. If you like this video, just mouse over this video or in the top left hand corner of the video there's a YouTube icon. Just click on the YouTube icon which will take you to my YouTube channel. I recommend that you subscribe to my channel. Below my video in, in YouTube there's a subscribe icon. You need to be logged into your Gmail account. To subscribe to my video, you need to do three things. Four things. Subscribe. Hit the bell button on the right hand side of the video, okay? Below that there's a thumbs up icon. Click on the thumbs up icon and also in the comment section leave positive comments as well as your bitcoin wallet address. Because I randomly give away 0.005 of a Bitcoin on random occasions. And you could be the lucky winner of that price. So good luck for that, and I'll see you on the next video.