VBS – Very BlondieSystem is a VertexFX client-side Trading Robot that employs a bounded range grid trading mechanism.
VBS Trading Robot should be used in range-bound markets as it tends to generate profitable trades at regular intervals when the price is moving sideways. When the price oscillates in a range the Trading Robot places BUY and SELL orders (LIMIT orders) and captures the profit when the price moves in the opposite direction. It uses a fixed grid distance and progressive (geometric) lot-size to manage orders.
When the Trading Robot is attached to a new chart, in the first step it calculates the Highest High and the Lowest Low of the recent PERIODX parameter completed candles. This is the range in which the Trading Robot operates. If the current price is LIMIT points below the Highest High then the BUY side of the grid is triggered. Similarly, if the current price is LIMIT points above the Lowest Low then SELL side of the grid is triggered. Both BUY and SELL grids can be active at the same time and are managed separately by the Auto Trader.
When the BUY grid is activated (current price is LIMIT points below Highest High), a BUY market order is placed. Subsequently, four BUY-LIMIT orders are placed at a distance of GRID points below the initial BUY market order. The lot-size of each lower-order increases geometrically. For example, if the lot-size of the initial BUY market order is 0.1 lots, then the lot-size of the first BUY-LIMIT order is 0.2 lots, the lot-size of the second BUY-LIMIT order is 0.3 lots, and so on.
Similarly, when the SELL grid is activated as explained above, a SELL market order is placed immediately. Subsequently, four SELL-LIMIT orders are placed at a distance of GRID points above the initial SELL market order with the lot-size of each higher SELL-LIMIT order increasing progressively.
The Trading Robot employs a trailing stop of LOCKDOWN points (when set to greater than zero) for each open trade. Since the trailing stop is applied to each open trade individually, it is possible that some trades are closed before others. When a position is closed at trailing stop, the Trading Robot does not replace the closed position with a new order.
The Trading Robot also employs strategy level profit-taking using the AMOUNT parameter. When the profit in the base currency of all the open trades (both BUY and SELL combined) reaches the value specified by the AMOUNT parameter closes all open trades and deletes pending orders. It then starts afresh if the initial grid conditions are met.
It is important to note that the Trading Robot does not add new LIMIT orders after all existing LIMIT orders have been activated. This safety mechanism ensures that the account is protected in case of an adverse price movement.