In this post I will be reviewing the R Factor EA. This is an automated forex trading strategy that has been programmed to run in the popular forex trading platform, MetaTrader. You can download MetaTrader free of charge from most forex brokers. It is worth mentioning that you will need the desktop version of the MetaTrader platform in order to run forex robots.
You can load the R Factor EA onto the charts in your platform and it will constantly scan the forex market for trading signals using the built-in algorithm. When the expert advisor determines that there is an opportunity for trade, it can enter the market and manage the position on behalf of the user. Whilst this may seem like an attractive proposition for those who do not have the time or knowledge required to trade manually, there are some key advantages and disadvantages to be aware of.
In this R Factor EA Review, I will be taking a look at the automated forex trading strategy that it implements, along with any back tests provided by the developer and most importantly, real verified account results. Hopefully, this can help you to decide if this is a forex EA that you would consider using on your own forex account or not.
R Factor EA Trading Strategy
The R Factor EA is a multi-strategy forex expert advisor with an innovative proprietary dynamic portfolio management system. The core principle of the implemented trading strategy is based upon market cycles. Thus, assuming that the market works in cycles and certain assets can perform better or worse than others during these cycles, the developer has created multiple strategies for night scalping and breakout trades, while applying a proprietary dynamic portfolio balancing algorithm, inspired by Kelly Criterion management, which automatically adds more weight to the winning pairs, while attempting to lessen the impact of losses by losing pairs in the period.
The four stages of a market cycle include the accumulation, uptrend or mark-up, distribution, and downtrend or markdown phases. Many forex traders believe that the markets have a cycle. This cycle is the result of human behaviour in the markets. As a result of this innate human behaviour, trends seem to repeat in the market. If a trader can chart these trends and predict future movements, they can increase their edge. The critical part here is recognizing the different stages in the market and which stage you currently lie in.
While asset prices may appear to move randomly up and down, technical analysis shows that there are distinct repetitive cycles that occur. These are predominantly driven by the market moves made by large institutional investors, and in order to trade successfully, individual traders should watch these market moves, or market cycles, closely.
Market cycles can be divided into four distinct phases:
- Expansion / Accumulation
- Peak / Markup
- Contraction / Distribution
- Trough / Markdown
The Kelly criterion is a mathematical formula relating to the long-term growth of capital developed by John L. Kelly Jr. while working at AT&T’s Bell Laboratories. It is used to determine how much to invest in a given asset, in order to maximize wealth growth over time. It is based on the formula k% = bp–q/b, with p and q equalling the probabilities of winning and losing, respectively.
Therefore, according to the developed R Factor algorithm, the winning pairs grow in the portfolio independently, pulling more weight and responsibility over the global portfolio, thus increasing the potential current and future gains, while the losing pairs have their significance and impact on profits reduced. This of course tends to increase the volatility of the portfolio, however the potential profit that is achieved makes the equation much more favourable to take greater risks and consequently possibly greater gains.
To be fair, this is one of the more complex trading algorithms that I have seen implemented within an expert advisor. I do feel that it helps the R Factor EA stand out from an already crowded industry where everyone is trying to release a forex robot. This often leads to poor quality control but I can take some confidence in this particular EA due to the complexities of the market analysis involved.
R Factor EA Features
- One Chart Setup with easy to follow instructions
- Defined Stop Loss and Dynamic Take Profit on all trades
- Just One trade per pair at a time. No Averaging, No Martingale.
- Dynamically portfolio balance proprietary algorithm that changes the weight and responsibility of each pair
- Intelligent Trade Exit System
- News Filter
- Proprietary Backtest Simulation of High Spread periods
- Exclusive Telegram Group for R Factor customers that purchase the full version only
R Factor EA Back Testing
When it comes to choosing a forex robot, I like to check to make sure the developer has provided back tests that show how the forex expert advisor may have traded over a good amount of historical data across various currency pairs. This can help us to understand how the automated trading strategy works and performed over different market conditions. Of course, historical performance is by no means any guarantee of future results, but it can be a good way to get a rough idea of what we might expect.
You can find a video of the R Factor EA on the MQL website which goes into detail regarding back tests of the bot. I am pleased to see that they have conducted back tests with 99% modelling quality which means they are using tick data and some of the best back testing conditions possible. It is also good to see the back tests are covering a decent amount of data across multiple currency pairs. This helps to emphasise that this is a diverse expert advisor that can adapt to different market scenarios.
R Factor EA Results
Whilst back tests are useful to some extent, the most important thing to look for in a forex robot in my opinion are real account results. This would enable us to see exactly how the R Factor EA has been performing through recent market conditions. That way you can determine if you are happy with the various statistics such as profit factor, drawdown, average win, average loss, trade duration, trading volume and more. To see the latest live verified trading account performance of all forex robots please visit my best forex robots results page.
I am very impressed by the R Factor EA results. This is because they have published accounts across around 20 different brokers. This goes to show that the R Factor expert advisor is not broker dependant. There are some forex robots that require specific broker conditions in order to reach their potential which can limit a trader’s choice of brokers significantly. That is not the case with the R Factor EA as is evident by the various accounts all of which seem to be doing reasonably well at the time of me writing this R Factor EA Review. Of course, things can change very quickly when trading forex online, so please feel free to refer to the graphs below for the most up to date results.
R Factor EA Summary
Overall, I am actually quite impressed with the thought, development and thorough testing that has gone into the R Factor EA. The developer seems to know their stuff and have taken it to another level when compared to some developers who seem more concerned with making false claims and writing elaborate sales pitches compared to putting effort into creating something innovative. However, that does not guarantee the R Factor EA will produce good results but you do have some back tests and real live data to get an idea of how it is trading during recent market conditions.
To use the R Factor EA, you will need an account with a forex broker. With so many forex brokers to choose from nowadays, it can be had to decide which is the best forex broker for you. From my many years of experience in the forex industry, IC Markets are one of the best forex brokers when it comes to manual and automated trading. This is because they have tight spreads, low commission fees, reliable execution speeds, multiple funding options and excellent 24/7 customer support.
If you would like to give the R Factor EA a try, there is a free demo version. You could even run it on a demo trading account to get a feel for how it trades without taking any risk. I would always test a forex robot on a demo account to begin with. Just keep in mind that demo account results can differ compared to live accounts. This is due to factors that can be different between a simulated and real trading environment including liquidity, slippage and spreads.
You can find out more about the R Factor EA by visiting the website using the link below. You can choose to copy the trades for a monthly fee or pay a one-off fee to activate the EA, which is not cheap. It is slightly confusing as there are so many accounts to choose from and different set files, but the developer is happy to help explain things for you whilst you can also see plenty of feedback from other users.
R Factor EA
$999
Pros
- Fully Automated Forex Strategy
- Combination of Market Analysis
- Various Trading Strategies
- Customisable Settings
- Built-in Money Management
- Verified Results
- Back Tests
- Dedicated Support
- Detailed Instructions
- Free Updates
Cons
- Quite Expensive
- Overwhelming Options
- MetaTrader Platforms Only
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.
