Week 1 Forex Autopilot and Forex Funnel Results
Posted by | Posted in Automated Forex Trading Systems, Forex Autopilot, Forex Funnel, Trading Results | Posted on 26-10-2008
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.
How to Profit From Forex on Autopilot
Sign Up Below to Receive a FREE Copy of "Autopilot Forex Profits", an exclusive report
about Forex Robots
And How You Can Use Them.
Read My Spam Free Privacy Policy.
------------------------------------------------------------------------------------------------------------------------------------------------------ ------------
Hi Chris,
Thank you for a very informative site and another great post. I have a couple of questions for you:
- If I understand you correctly the Forex Funnel systems makes use of a type of Double Up strategy? If so can you configure the system to limit the number of “double ups” to trade of will it just carry on until a successful trade is made?
- Does any of these systems offer any configurable setting on different strategies to follow, or are the strategies fixed ?
Jazzen
Hi Jazzen,
You are correct, Forex Funnel uses a “double up” strategy that is widely known as the Martingale strategy. You can see a good explanation of the Martingale strategy here:
http://www.investopedia.com/articles/forex/06/martingale.asp
There is no way to configure the system to limit the number of trades that are opened. The only inputs the system has is the size of the starting lots (0.01 in my case) and the days on which to trade (you can tell it not to trade on specific days if you want to).
To be honest, limiting the number of Martingale trades would not really make sense, because this is exactly what makes this strategy successful, as risky as it sounds. If the number of trades were limited, the system would probably make a large number of losses.
So far I believe that the only way to trade successfully with Forex Funnel is with a LOT of starting capital and the highest leverage you can find. In the manual they recommend starting with 0.01 lots when you have $2500 capital on a 200:1 leverage account. Personally I wouldn’t try the above parameters with less than $10,000 starting capital. Perhaps at a later date we can do a case study to see what the optimal parameters are.
Please see my full Forex Funnel review for more information:
http://fxtradingreviews.com/forex-funnel-review/
Forex Autopilot on the other hand is very customizable and has many configuration parameters. I will make a seperate blog post about this a bit later.
Let me know if you have any other questions.
Chris
The Forex Funnel uses a Martingale system which we Las Vegas types know is a total losing system. But if you must play the martingale use a GRAND Martingale. In the Grand you double and add a bet instead of just doubling. In this way you win each bet not just the first one.
But like I said it’s a losing proposition in the long run.
Clinton – Thanks for the comment. This is an old post that I made after just purchasing Forex Funnel. There’s been many updates since then and my final review can be found here: http://fxtradingreviews.com/forex-funnel-review/. You’ll notice that I talk about how it uses Martingale in the review.