Today we’ll be exploring theForex Invest Bot – this is another expert advisor developed by Eugene L., the builder of the Forex Growth Bot (FGB) that we reviewed recently. The developer says that the Forex Invest Bot is based on the strategy of its predecessor FGB, with some improvements added, such as updates allowing the bot to avoid long series of losses.
Just like FGB, the Forex Invest Bot is designed to work on the Metatrader (MT4) platform – so if you decide to opt for this robot, make sure to pick anMT4 broker.
The Forex Invest Bot is available for $197, with a 60-day money back guarantee. The price is higher than that of FGB – $129, but is lower than the $395 you will have to forsake for Robin Vol (the robot to which Forex Invest Bot is often compared) for a single year.
Why do I consider the Forex Invest Bot worth of your attention? For starters, it currently stands at the 6th place in bestforexrobots.net’s ranking of forex robots based on monthly gains. What is more, its predecessor – the FGB – has been very popular amongst traders as well.
Backtests: profitable trading
As with Forex Growth Robot, the developer of Forex Invest Bot is diligent in terms of backtesting and offers a couple of backtests. Both are for the period from January 2, 2007 to October 9, 2012. EURUSD is traded on a M15 (fifteen-minute) time frame.
The difference between the two tests is the risk setting. One of the tests is ran with a low-risk setting, the other – with a medium-risk one.
The common part about the tests is that they both show profits for this period. The low-risk test shows a total net profit of $195,140, while the medium-risk test generated gains of $2,536,126. I guess you were impressed by the latter result, but it comes at the expense of a bigger drawdown. The relative drawdown for the low-risk test stands at 31%, while for the medium-risk test it is at 43%. Both readings indicate substantial risk for trading, but this is not unacceptable. Since the difference in risk levels envisaged by the low-risk and medium-risk settings is not that big, while the reward in the riskier mode is quite larger, we recommend that you opt for the medium-risk settings of this bot.
The percentage of profit trades (58%) outweighs the percentage of loss trades (42%) in the low-risk backtest, but in the medium-risk backtest the percentage of profit trades (50%) equals that of loss trades. However, in both backtests the average profit trade size outperforms that of average loss. This is how the robot manages to keep your account profitable. Smooth!
Smashing live trading results
The developer of the Forex Invest Bot has applied this expert advisor to one real account on myfxbook.com. It has been active since December 3, 2012, which makes it only three-months old. However, some observations should and will be made.
The account, registered with Synergy FX and trading EURUSD, has enjoyed a gain of 41% since its launch. The success is underlined by the fact that all of the three months of activity have been marked by gain growth (6%, 13% and 18% respectively). As you can see, growth rate is rising and that’s awesome.
Some of you might ask about the risk associated with such a gain. Well, the relative drawdown is at a nice level of around 10%, which indicates a safe trading strategy.
As you can see, the Forex Invest Bot outperforms Robin Vol (18%) in terms of relative drawdown. In addition, note please that the Forex Invest Bot beats Robin Vol with reference to gain, given that the cumulative gain for December, 2012 and January and February 2013 for Robin Vol’s live account with Pepperstone is about 20%. Remember how pricy Robin Vol is? Now you can be certain that sometimes less can mean more.
Although the Forex Invest Bot’s relative drawdown is better than the one resulting from the trade of Forex Growth Bot (42%), FGB provides higher gains – the gain for December, 2012, as well as January and February 2013 exceeds 50%. As it seems, risking pays off with the robots of Eugene L.
More good news come from the average pips per trade for the account to which Forex Invest Bot is applied – the ratio stands at solid 13.6. This indicates trading resilient to drastic changes in market behavior. The result is quite remarkable when compared to the meagre 3.3 average pips per trade achieved by Robin Vol and the 6.6 average pips per trade achieved by FGB.
On top of this, the average win of 42 pips, or $82, outmatches the average loss of 24 pips, or $51, and the number of trades won (57%) is higher than the number of trades lost. What this means is that the robot is able to keep the account profitable despite several series of losses.
Saving the world and some money too
Ok, maybe the Forex Invest Bot is not saving the whole world, but it is surely doing a great job saving the world of one’s personal finances. The robot has been performing great, at least until this moment.
There have been speculations about its advantages and disadvantages compared to several other EAs, like Robin Vol (which is quite expensive) and FGB. In such circumstances, when there are so many voices pro and contra, it is particularly hard to make a choice. My advice is to consider only the numbers – let the pips do the talking and you do the listening. I’m sure that you cannot go wrong.
Know your Keywords
Expert advisor (EA) – An algorithmic trading system for the MetaTrader platform; a trading robot. EA’s can either be downloaded free of charge or for a fee, or can be programmed in the MQL programming language.
Backtesting – Testing a trading strategy on past time periods through a simulation.
Drawdown – A trader’s biggest loss for a certain period of time, expressed either in pips or as a percentage of the trader’s profit. The lower the drawdown percentage, the less riskier the trading strategy. Let’s say you start with a balance of $1,000, then make a profit of $1,000, and after that lose $500. Your drawdown will be 25% ($500/ $1000 + $1000 = 0.25 = 25%).
Live account – A trading account where broker customers invest actual money. Most brokers offer traders the possibility to trade with a demo account before or along with creating a real one.
Lot – The standardized contract size of a trading instrument. A standard lot consists of 100,000 currency units, a mini lot – of 10,000; a micro lot – of 1,000 units, and a nano lot – of 100 units. If you are buying 1 lot EURUSD at 1.3000 for example, you are buying 100,000 Euro for 130,000 US Dollars.
Pip – The fourth digit after the decimal sign of a price quote. For example: if the EUR/USD moves from 1.3350 to 1.3351, that is one pip. Pips are used to measure price movement, profit and slippage.