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.
