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I have come to the end of my first month of Forex Autopilot testing and I am very happy with the results I’m seeing so far. Week 4 was another good one, with 11 winning trades and 0 losers. After one month of testing the situation looks as follows:

Week 1: +409 pips
Week 2: +100 pips
Week 3: +86 pips
Week 4: +220 pips
Total: +815 pips

Total Trades Executed: 58
Winning Trades: 56
Losing Trades: 2
Success Rate: 96.55%

Some people say that the Forex Autopilot is a scam, simply because it does not use a stop loss and while I agree that not having a stop loss is risky, it is also very hard to ignore the high success rate and for now I’m not going to write off this system just because of that.

I have been tempted to start trading with this system on a $500 mini account, but I think I’m going to test it for another couple of weeks before taking the big step. I first want to learn as much as possible about how this system works and possibly join FAP Winner before I enable this on a live account.

I have also made some trades with the 10 Minute Forex Wealth Builder and Forex Avenger systems, but will post more details about this later this week.

Forex Autopilot started the week with its first real losing trade, making a loss of -234 pips on Monday. As I explained in another post, Forex Autopilot closes losing trades at month end in order to have a “fresh start” in the new month. The above trade was still open at month end and closed accordingly. After that the system has made 16 winning trades of +20 pips in a row, resulting in a net profit of +86 pips for the week. Here are the current totals:

Week 1: +409 pips
Week 2: +100 pips
Week 3: +86 pips
Total: +595 pips

In the 3 weeks that Forex Autopilot has been running in my demo account, it has executed 47 trades, of which 44 were winners and only 2 were losers, including a trade that I closed manually when I switched accounts. This is a success rate of 95.7%. Considering the current worldwide economic volatility, I am very pleased with these results so far. It seems that many users are seeing excellent results with the new Forex Autopilot that was released in September.

Over the last 5 days I’ve spent a lot of time learning the Forex Avenger and 10 Minute Forex Wealth Builder trading systems and I’m going to start trading with both of these systems today in a seperate demo account, dedicated for manual trading systems. The two systems are completely different, but I’m very impressed with both so far and will post full reviews of them over the next couple of days.

There’s been some questions about Forex Autopilot settings, so I decided to make a seperate post with some more detail about this. I believe that some of the Forex Autopilot parameters can make a big difference in terms of minimizing the losses and maximizing the profit of this system. For this reason I believe that joining a Forex Autopilot user group like FAP Winner could be essential.

FAP Winner is a specialist Forex Autopilot membership site run by Charles Floyd, a successful Forex Autopilot trader. The Fap Winner membership includes things like a personal trading plan, more information on custom parameters, 1 on 1 coaching, discussion forums, a hedging system and many other services all focussed on achieving success with the Forex Autopilot system. It also seems as if Charles has direct access to Marcys Leary and the Forex Autopilot developers.

Personally I would not trade this robot in a live account without joining FAP Winner first and I’ve been very tempted to join already, but I’ve spent a little too much on this blog over the past few weeks, so I’m going to delay my FAP Winner purchase for a week or two and continue testing the basic Forex Autopilot for now.

See More Detail About FAP Winner Here

Back to the Forex Autopilot settings. Below is the list of parameters that the user can modify. The ones in bold are explained to some degree in the manual, but the rest are not documented anywhere.

The manual recomends that a lot size of 1 is used for accounts over $10,000, with 0.1 for smaller accounts. I’m using a $5000 demo account, so I stuck with the default of 0.1

The LotRiskReductor setting can be used to enable automatic lot management and allow the robot to dynamically decide the lot size of each trade. This setting specifies the maximum percentage of capital that the system can risk on a trade. The current value of 1 effectively disables this feature.

The TrailingStop parameter is disabled by default, but could possibly be used to maximize the winning trades. This is one of the settings that I would like to experiment with.

I am tempted to say the a static StopLoss should be specified, even if it is a high number like 400 pips, but for now I’m going to leave this setting on the deafult value and see how the system handles the big losers.

Apart from things I have already mentioned, the documentation really doesn’t give any information on most of these settings, but I will do some digging and report back if I find anything interesting. One thing I do know is that many people mess around with these settings, but end up going back to the defaults..so improving a system like this is never as easy as it may look.

Firstly, I purchased 2 manual trading systems to test today: 10 Minute Forex Wealth Builder and Forex Avenger. I’ve always wanted to test 10 Minute Forex Wealth Builder, but there’s been so much hype about Forex Avenger this week, that I decided to buy it as well out of pure curiosity. These will be the products that I use for my initial case study of manual trading systems. I can’t wait to start reading the ebooks to see what these systems are all about. More details about this soon..

Back to Forex Autopilot. I’ve reached the end of week 2 of my Forex Autopilot forward test and while it’s been a much quieter week, the results are still looking positive -

Week 1: +409 pips
Week 2: +100 pips
Total: +509 pips

I decided that I will only include closed trades in my result posts to avoid confusion. I manually closed the open trade there was at the end of week 1 for a loss of -71 pips, because I wanted to create a fresh demo account that was dedicated to Forex Autopilot. This trade would have been a winner if I left it open till Monday. Out of 30 closed trades to date, there has only been 1 losing trade – the one that I closed manually. Very Impressive results so far.

This week I also saw the first thing about Forex Autopilot that I didn’t like. The week started good with 5 winning trades in a row to make the 100 pips profit by Tuesday, but then it entered a short position on Wednesday that it hung onto for the rest of the week. At one stage this trade was -400 pips in the red, but it recovered a lot towards the end of the week. I’m not entirely sure what to do with open trades on Fridays, but the manual doesn’t say anything about this, so I guess I should just let this trade run its course and see what happens.

Being in a trade for 3 days is not such a problem for me, but the fact that it only opens 1 trade at a time is, because during those 3 days there would have been numerous other trading opportunities missed. I did some research about this and answer to this seems to be in the Forex Autopilot configuration parameters, but I will make a detailed post about this tomorrow.

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!