I was not in intention to test this Forex Funnel system as I can see this EA uses martingale system. Actually I’m not the fan of martingale system.
What is martingale system ?
From what I know, Martingale System is a trading method using strategy to open multiplying lots on the next trade to cover its previous loss positions. This is why the system needs huge margin and high risk classified. Martingale system is good on ranging market, but will be suffer in strong trending market.
On their website - www.forexfunnel.com - you can see that they say:
ANYONE can profit from the forex funnel system even with no knowledge and no trading experience, take a look at the video below - this is the money you have already missed out on by not getting the forex funnel system earlier. DON’T WAIT ANY LONGER.
Well.. I must say to you that it’s not 100% true. Forex is just like any other business. You have to learn anything about the business you do to make profits. And risk comes from NOT knowing what you are doing.
This EA uses a bit different approach from any other martingale system EA. First the EA will open buy and sell orders at about the same time using the lot you set on the setting parameters. Then the EA will open a multiplying lots sell limit order a few pips above the current price hoping to get a few pips profit from the retrace.
I define this EA as a high risk system as when the price is moving too fast without any retrace, the EA will continue open wrong position trades in multiplying lots. And you can imagine what could be happened on this situation : margin call !
Since the beginning of my exploration, I always look for EA which is able to use $50 margin in micro lot account or $5,000 margin in standard account. Some of you may know that $50 margin in micro lot account is equal to $5,000 margin in standard account. So, I test this EA using $5,000 on demo standard account and 0.1 as its first level lot.
Last week I recommend a friend of mine to test this EA as I saw this EA was survived in USD/JPY 492 pips down on October 6th’s strong downtrend ( 105.16 to 100.24). It even made some profits while other martingale EA tested by my friend has ended up with a margin call. Then he started to test forex funnel on October 10th, 2008. And then we saw his demo account was ended up with margin call on October 14th, 2008 morning. His demo account can’t stand for 230 pips strong uptrend of USD/JPY which rallied from 99.74 to 102.05 without any considerable retraces. His demo account used 25K initial balance and 0.1 first level lot.
The interesting part is, my demo account still survive until today. So what’s the different ?
My friend tested the EA on his VPS which is online 24 hours. While I test it part timely not using VPS. I only connect my computer when I work at office and at home before I sleep. Mostly I turn off the EA when I go to sleep during the US session.
On the other word, you have to supervise the EA works and do something necessary when you spot something wrong with it.
What could be wrong then ?
I usually turned off the EA when I spot strong uptrend and the lot is approaching to 6.4 lot. I turned off the EA without closing any positions manually. I’m not saying that this is a good decision, as the floating minus could be huge and we still don’t know where the price would be going.
I know, the good EA should work without any human interventions. But in this case, I just need to test how long this EA can be survive with low margin and high risk market.
During my 3 weeks test, the balance is increasing 100% form $5,000 into $11,563.41. Well, high risk… high gain. Once again, I should remind you that this is a very high risk EA.
Have a safe trading !
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