Forex

Expert Advisors Reviews

VolcanoFXEA Review - Is it scam or reliable forex trading system?

At this point in time, you have probably already seen one of the “get-rich-quick” forex/option trading systems. In this review we will discuss VolcanoFXEA and determine if it is a scam or a legitimate investment opportunity.

 

Strategy

 

VolcanoFXEA is a system which utilizes three different trading algorithms. One of them is trend-following, while the other two attempt to capitalize on market reversals. Looking at the recent history, we can easily spot the reversal strategies trigger far more frequently. This is to be expected simply due to their nature and recent market conditions. 

 

The system trades mostly major currency pairs like EUR/USD and GBP/USD. This is generally a good sign, as those are very liquid instruments. This is beneficial for system followers, as the likelihood of slippage messing with the execution is reduced, when compared to copy-trading in less liquid markets.

 

After a review of the past trades, we can say the system trades as described with fairly high confidence. The precise entry and exit parameters are not mentioned, of course, but trades are executed in a manner which is in line with the guidelines. There is no dangerous martingale or “hedging” involved.

 

Historical performance

 

The VolcanoFXEA system has been ruing since October 2013 on myfxbook.com.  Performance was mediocre at best in the 2013 – 2014 period. A serious re-optimization probably took place at the end of 2014, as the system’s results changed drastically from that point onward. Another key element, we must also mention is that there was an additional deposit in December 2015, which does alter some of the historical metrics.

 

VolcanoFXEA profit chart

 

The drawdown in 2014 was significant, even spiking above 40%. This is generally a bad sign, although the system managed to recover the losses. Even after the supposed system overhaul, there still were a few moves above 20%. This is still risky, but far more manageable. 

 

VolcanoFXEA drawdown chart

 

The system has won 67% of all the trades, which is a pretty decent result. However the average losing trade is almost 37% that the average winner (30.25 pips vs 19.06 pips). 

 

The average pips per trade are fairly low, at 2.83. We would generally recommend following systems where this ratio is at least above 3.0. Keep in mind, whenever you follow an automated system, there is the risk of slippage – your trade being filled milliseconds after the initial one, at a slightly worse price. Another key point factor is the decentralization of the FX market, which can lead to slightly different quotes at different brokerages.

 

You must keep in mind, historical performance can not serve as a guarantee for future results.  VolcanoFXEA was ran at IC Markets since 2013, with the track record being verified by myfxbook. 

 

Pricing

 

This particular system is not bring sold separately from the myfxbook.com offering. However the word “volcano” is popular and used by other sellers of EAs. We can not guarantee they offer the same or similar product, in fact the opposite seems more likely. Myfxbook’s Autotrade charges commission on every trade a system executes.

 

Bottom line

 

Overall this system would not be recommended by us. Our major concern is the low pips per trade (2.83). This is definitely not a scalping system, but at the end of the day costs will add-up. The relatively high drawdown level is also worrying. Furthermore, the history seems to have two phases, which can clearly be seen on the profit chart. To be fair, since 2015 performance looks a lot better. Maybe the people operating the system should have created a separate account after the apparent overhaul – this would have looked a lot better in our eyes.

 

TAGS: VolcanoFXEA  VolcanoFXEA review  VolcanoFX EA  forex system  forex trading system 
Broker Country Regulation Platform Min Deposit Review
Cyprus CySec MT4, MT5, Web $5 Review Website
Cyprus, Australia CySec, ASIC MT4, Web $100 Review Website
UK, Cyprus, Hong Kong FCA, CySEC, SFC MT4, Web,
PrimeTrader
$100 Review Website
UK, Australia, Singapore FCA, ASIC, MAS, BaFin MT4, Web,
ProRealTime,
2Dealer
$0 Review Website
UK, Australia FCA, ASIC MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus FCA, CySec MT4, MT5 $5 Review Website
UK, Cyprus FCA, CySEC MT4, MT5,
cTrader,
SuperTrader,
FxPro Markets
$100 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus CySec MT4, Web, Gwasy $100 Review Website
Belize IFSC MT4, MT5, Web $1 Review Website
Cyprus CySEC MT4, MT5,
cTrader
$300 Review Website
Seychelles FinaCom MT4 $10 Review Website
UK, Cyprus, Bulgaria FCA, CySec, FSC Web $150 Review Website

More Forex Expert Advisors Reviews

FX Mower Review - Is it scam or good forex system?

Jul 21 2017 13:25:30

 This will be a review of the FX Mower Expert Advisor. This system is interesting, especially given its recent results – it has achieved significant gains with having a negative pip balance. How is this done? Let’s see. Read more

Trading Dilemma: Manual vs Automated forex trading?

Jul 21 2017 09:48:41

Automation appears to be entering all areas of our lives – from home systems, which set the temperature for specific hours, driverless cars to even algorithms writing music.  In this article we will focus on trading automation, which is by no means a new concept. Read more

Grids, Martingale and Hedging explained

Jul 18 2017 12:22:31

This article will attempt to explain some of the most commonly used concepts in Expert Advisors. It’s worth mentioning, they can be used in manual trading as well, but their popularity has grown with the automated crowd. We will showcase some highly risky systems, which we do not recommend. Read more

Forex

FX Turbine Review - Is it scam or good forex system?

Jul 17 2017 14:49:22

 FX Turbine is an automated trading system, we would like to review. It may not be the best EA you will ever see, but its past performance swill serve an educational point. Read more

PastorPro Forex Trader Review - Is it scam or good forex system?

Jul 13 2017 14:41:21

We recently introduced you to a relatively new automated system, called the Forex Cyborg Robot. As we stated in its review, it is easy to feel like you have missed out on the majority of a system’s gains, unless you get on board early on. Read more

Forex Cyborg Robot Review - Is it scam or good forex system?

Jul 12 2017 17:50:04

 Have you ever seen the historical performance of an Expert Advisor and ever wanted to jump in right in the beginning? Some charts simply look too good to be true – one can get the feeling they have already missed the gains and the system will surely backfire at this point. Read more

Rocket EA Review - Is it scam or good forex system?

Jul 11 2017 14:28:19

 The Rocket EA, as developed by TulipFX, a company specialized in providing automated trading systems. Although it has only a year’s worth of trading behind its back, we will give it a review. Read more

Harmonics Trader Review - Is it scam of good forex system?

Jun 06 2017 09:52:41

 One of the rather interesting and new technical systems is the Harmonics Trader. It operates on the basis of the harmonics market theory, as the name suggests. The system has been running for a fairly short period of time, but a 3 years backtest is also available. Read more

Minute Profit EA Review - is it scam or good forex system?

Jun 05 2017 10:22:29

The relatively newly released Minute Profit EA has delivered enormous gains in the short time it has been running. This forex robot has earned more than 1200 % in about a month’s time. Read more

WallStreet 2.0 EA Review - Is it scam or reliable forex trading system?

May 16 2017 11:50:45

In this review we will showcase the wallstreet-forex.com automated trading system. You may have recently heard about them and be deliberating an investment. Be sure to read this review before making an informed decision. Read more

Forex