ForexSystemsReviews is 100% free and independent service. Our main website is Forex-Systems-Reviews.com Check out fresh reviews and video reviews there!
Sunday, August 10, 2008
Forex Funnel Review
REVIEW: Last weeks I was getting huge number of requests from my fellow traders to review this system. Finally I decided to take my time and make a review of Forex Funnel, new expert advisor. Website Design is "huge" again and I guess it is the second project from the creators of the Forex Tracer EA.
After some research and investigation I found out that Forex Tunnel is playing some kind of Martingale Game. Martingale is a casino roulette strategy where you double a losing bet each time. First you bet $1, if lost then bet $2, then $4, $8, $16, $32 etc untill you win or run out of money. The plus of such strategy is that you will propably win in most cases. The minus is that you need really HUGE CAPITAL to play such games. Now take a look how Forex Funnel calculates the lot size for the trading.
Click here to see the image
Of course I dont know the algorithm of the EA but these numbers look like martingale for me.
On the one hand I cant call Forex Funnel Scam. Martingale strategy was created long term ago and Forex Funnell creators are not the first and the last people who use it in forex trading. Also the "perfect line" backtest image on their website is not fake too. On the other hand the creators "forgot" to tell you that to start using it you will need at least 100K (!!) of starting capital. I guess most of us don't have or not ready to risk such huge capitall in a simple martingale game. The bottom line is that even with such huge capital the drawdowns are too high (Over 81K drawdown on 100K account!!) and the profit is so poor (only 340% in 8 years) comparing to other EAs. Take a look on my investigation here:
Click to enlarge the image
In the conclusion I will not call it SCAM or bad system, but for general trader it is a waste of money. You will be able to use it only on demo as most of us don't possess 100K minumum capital to start Live real trading.