FXTradingReviews Forex BlogReal Reviews of Forex Trading Systems

For those who are interested in the Forex Funnel product, see my full review in the “Pages” section to the right or click here: http://fxtradingreviews.com/forex-funnel-review/

I have stopped testing Forex Funnel for now, because I’m looking for a system that uses a more conservative trading strategy, but because I have already spent the money on it, I will probably revisit this product in the near future.

It’s the end of my first week of demo trading with Forex Autopilot and Forex Funnel and I’ve already seen some very interesting results. Here is a quick summary of my trading results so far:

Forex Autopilot Result: +409 Pips
Forex Funnel Result: +407 Pips
Total Profit: +815 Pips

Forex Autopilot has made 24 winning trades of 20 pips in a row this week, but it had an open trade that was -71 pips in the red by market close on Friday. This trade might well end up in profit, but for simplicity sake I decided to count this trade as a loser for now. It is too early to make any conclusions after 1 week, but so far I am very impressed with the high success rate and trading decisions of this system.

Forex Funnel on the other hand has made 250 trades in the past 5 days of trading. It uses varying lot sizes, which I’ve taken into account when calculating the net pip values above. The key to this system’s success definitely seem to come from a high risk, high reward Martingale strategy.

The following trades on Thursday illustrates this strategy very well:

A short position is entered at 95.96 based on the system’s internal indicators. The price goes up and the trade starts making a loss. Another short position of double the lot size is entered at a higher price. The principle is quite simple – if the price retraces slightly at this point, the second, larger trade makes enough profit to cover the losses of the first trade. Both positions are then closed and no losses are made. However, if the price continues to go up, another short position of double the second position’s lot size is entered, etc..

As you can see in the example above, the first losing position was entered with 0.01 lots, but it took another 9 trades until a retracement occurrred that could make up for the losses. At one point, there were 10 open trades with a total of 10,23 lots in the market. If this losing streak continued for just a while longer, my account would have been wiped out by a margin call.

I also found a rogue Forex Funnel trade that was open for 4 days and then closed out by a stop loss for nothing less than a 1000 pip loss. Most of the Forex Funnel trades seem to have stop losses around the 1000 pip level, which is another big risk.

For these reasons I’v decided to stop testing Forex Funnel for now and focus more on Forex Autopilot and other products that don’t use Martingale strategies. Perhaps I will revisit Forex Funnel again later.

For those who are interested in the Forex Autopilot product , see my detailed review of it here. The review contains more details on what exactly you receive with the Forex Autopilot product, as well as a backtesting report for the 2008 year so far and some of my initial thoughts and recommendations about the product. I hope this review will clear up some of the questions you may have about the product.

Get the review here: http://fxtradingreviews.com/forex-autopilot-review/

It’s been roughly 2 full days now since I switched on Forex Autopilot and Forex Funnel in my Interbank FX demo account and I already see some interesting results.

Firstly, I made a mistake with the Forex Autopilot setup and only found out that the expert advisor was complaining about the activation key last night, so this system has only been trading for 24 hours now, while Forex Funnel has been trading for almost 48 hours.

In terms of trading results there is only good news so far. In the past 2 days I have made +410 pips net profit using these 2 systems. This consisted of 140 pips from Forex Autopilot and 270 pips from Forex Funnel.

Here are some more details of what has been happening with each system so far:

Forex Auto Pilot

Forex Autopilot has made 7 solid trades on the EURUSD over the past 24 hours, of which 100% were winners. Each trade made 20 pips, for a total of 140 pips profit.  See the diagram below for some of its winning trades today.

Please Note: For these tests I am using the new version of Forex Autopilot that was released in September 2008.

The one thing I noticed immediately about Forex Autopilot is the fact that it does not use any stop losses. According to the manual it closes losing trades based on it’s internal indicators.

While this plays a part in the large percentage of winning trades, it can also result in large drawdowns, so this is something to look out for over the coming weeks when some losing trades start to appear.

Overall I am very impressed with Forex Autopilot’s performance so far and look forward to seeing how it does throughout the rest of the week.

Forex Funnel

I have mixed feelings about the Forex Funnel system so far. It has made 270 pips from the USDJPY from 24 trades in the last 48 hours, so the overall results are very good so far, but the trades just doesn’t make enough sense to me to be able to comment yet. One thing I do notice is that there seem to be some kind of Martingale strategy at play in this system, which could be very risky, but this will become more clear over the next couple of days as more trades are performed.

All in all I am very happy with my testing results so far and I hope to post some more positive results in another 2 or 3 days. In the meantime I am looking into some manual trading systems to test..more on that later.

January 2010 Update: Read my full reviews of the top 5  Forex Trading Robots here.

After some more research I decided to purchase both the Forex Autopilot and Forex Funnel products. These products have both showed promise in backtesting, but they focus on different currency pairs and employ entirely different trading strategies, so it would be interesting to see how each of them perform in forward testing under current market conditions. I have spent most of the weekend playing around with the software, reading the documentation and making sure I understood how both worked.

I also had a quick look at the two bonus indicators, namely the Ultra Trend Indicator that comes with Forex Autopilot and the Gold Miner Indicator that comes with Forex Funnel. Both of these indicators seem to be very effective at first glance and I would definitely like to look into them more carefully at a later stage.

For the purpose of initial testing I’ve registered a $5000 demo account with Interbank FX, because this is realistically what I would start with if I ever move this to a live account. In this demo account I’m running both of the expert advisors simultaneously - Forex Autopilot on the 1 Minute EUR/USD chart and Forex Funnel on the 1 Hour USD/JPY chart.

One interesting thing I noticed immediately is the difference in recommended lot sizes. For an account of $2000, Forex Autopilot recommends a lot size of 0.1, while Forex Funnel only recommends a lot size of 0.01 for an account of $2500. I’ve used these values for my $5000 test account and I am looking forward to see how this affects the performance of each system.

I will write full reviews of Forex Autopilot and Forex Funnel over the next week or so and hope to post some detailed trading results from my demo account soon.

January 2010 Update: Read my full top 5  Forex Robot Reviews here.

I’ve been doing some research into the 3 most popular Automated Forex Trading Systems on the market and put the results on a more detailed review page that you can access here or via the navigation bar above.

As you can see in the report, I’m quite impressed with the Forex Autopilot and Forex Funnel products. My initial plan was to only buy Forex Autopilot for now, but I’m very interested in Forex Funnel now as well and I think I may just buy both of these and demo trade with them concurrently.

I’m also very interested in testing at least one manual trading system, so over the next few days I’m going to do a similar exercise as above for the 3 most popular manual trading systems I can find.

Hopefully in my next post I’ll be able to give some initial feedback on the Forex Autopilot and Forex Funnel products!

I’ve had some questions about how exactly Automated Forex Trading Systems work and decided to post a brief introduction for those who are not familiar with the concept.

Automated Forex trading for the home user is currently only possible through Metatrader, the award winning free trading platform. The Metatrader application contains a built-in programming language that allows you to create custom indicators and trading strategies. A trading system developed for Metatrader is called an Expert Advisor. An Expert Advisor can be used to perform automated trading in your Forex account or to simply generate trading signals that you can act on manually. Popular Forex Trading Robots like Fap Turbo are custom developed Expert Advisors for the Metatrader platform.

Click Here to Review the Top 5 Forex Trading Robots

One advantage of Expert Advisors is that you can perform comprehensive back testing against years of historical data with the click of a button. Another advantage is that you can perform forward testing, by running the Expert Advisor on a demo account and allow it to perform automated trades. Back testing and forward testing of Expert Advisors are very effective ways of evaluating new trading systems without risking any of your capital.

If you are interested in products like Fap Turbo, we highly recommend that you spend some time doing back testing against historical data or forward testing in a demo account before trying them on your live account. If you are not satisfied with the test results you can simply ask for your money back as per their full guarantees.

Various Forex brokers support the Metatrader trading platform, but I definitely recommend Interbank FX as my broker of choice. They have a good track record as a broker in the Forex trading industry and offer a variety of free services to their traders. You can open a free demo account and download their Metatrader application here: www.ibfx.com. (Click on the “Download Free Demo” link on the right). The standard Interbank FX Metatrader application includes 2 Expert Advisors that you can use for practice on your demo account.

Click Here to Review the Top 5 Forex Trading Robots

When I started this blog I already knew what my requirements were. I have a full time job and a busy family life, so I’m looking for forex trading systems that don’t require a lot of time in front of the computer every day. I have identified two types of trading systems that satisfy this requirement so far-

• “Forex Trading Robots” or “set and forget” automatic forex trading systems.
  Programs like Forex Autopilot are immensely popular right now, simply because they offer a solution to many of the problems that the average forex trader has. The main attraction of automatic forex trading systems is the fact that it can trade for you 24×7 on complete auto-pilot, even while you are at work or on the golf course.
•  ”10 Minutes a Day” manual trading systems
  Products like the 10 Minute Forex Wealth Builder are very popular, because they offer step-by-step trading strategies for the part time trader that can’t spend hours in front of the computer every day. All you need is 10 minutes in front of the graphs each day.

There are also various other options like signal providers and forex managed accounts, but for now I am quite interested in the above options and would like to start with them. I think the best way to start is to identify the 3 most popular products in each category and then pick 1 product from each category to start doing tests with in a demo account. I’m quite keen to test the 2 products above because of their popularity, but I’ll go through the motions first and see if anything else looks interesting.

This is my first post on this blog and I think the best way to start is with an explanation of what this blog is all about. My name is Chris and I have always had an interest in forex trading. I am not a professional trader and don’t do any live trading at the moment, but over the next year or so I would like to change that.

Forex trading has been a hobby of mine for a couple of years now and I’ve spent a lot of time learning about forex trading and the different strategies the professionals use to make money. I never had any real success in my own trading and finally gave up the hobby around 3 years ago, because I just could not find a trading strategy that made consistent profits for a part time trader like me that still had a full time job.

However, the forex trading industry has recently seen an explosion of new strategies available to the home forex trader and since I still believe it is possible to trade forex for a living, I decided to start things up again and try out some of these new systems. My personal goal is to find a profitable forex trading system that I can trade with on a live account before 1 November 2009, roughly 1 year from now.

The goal of this blog is to write about all the products that I test and the results that I achieve with them. I will write detailed reviews of all the products I purchase and post trading results regularly. To evaluate a product I will do backtesting against historical data and forward testing using a demo account where possible. There are many false forex review sites and scams out there and I really hope that this blog will be a source of trustworthy information to anyone who is searching for profitable forex trading systems online.

In my next post I will talk a bit more about my plan of action. See you then..