Today in our section for expert advisor reviews we'll be exploring Forex inControl, a robot that aims to keep a tight lid on all risky aspects of trading while being the phenomenon and the main trend of 2014. The careful inspection of this piece of software showed that its performance is not that successful in all respects and that holding drawdown under control is not an easy business.
Forex inControl works with four currency pairs: AUD/USD, EUR/GBP, GBP/JPY and USD/JPY. The robot opens a position in tune with a newly emerged trend – in case the position's profit reaches a certain level, it is closed. If, however, it starts losing money, then another one is open in the same direction so that when the trend turns, all of the positions are closed together. Unfortunately, we've noticed that the robot often increases the trade contract size when the losses are big. And it is this aggressive approach that has led to huge drawdown periods.
Photo credit: Myfxbook.
Some of you must have spotted a trading method known from gambling – Martingale. And although it aims at maximizing profits, it also often leads to great losses.
One important thing to note is that we're exploring an account with aggressive settings and that the robot has also been working on an account with a more moderate setup. I personally prefer the less aggressive settings, especially given that the resulting drawdown is just at 16%. However, we are currently reviewing the riskier account due to the blunt fact that the account with the moderate settings has not had any trades since the end of March. It could be the robot being idle but it could be that the developers have decided to abandon this one, so we have to stick with the riskier version.
The account we are exploring is real (this is always a good sign) and has been active since December 17, 2013, which gives us about four months of data. You can see that the balance curve is very good.
Photo credit: Myfxbook.
Spot how the equity curve (the yellow line) diverges from the balance curve – this is one of the landmark signs of the Martingale method being active. This risky approach to trading, however, has resulted in great profits – for less than four months the gains are at massive 145%. On the downside, the drawdown is also huge at 61%. This high level was hit thanks to just two series of Martingale-based trades around January 20. Stemming from this, the return-to-drawdown ratio is rather small at 2.4, showing small profits in exchange for what we invest.
The average pips per trade paint a nicer picture – they are at 9, which shows that the trading system is capable of withstanding the effects of spreads and slippage. Hence, at least we should not worry about the choice of a broker.
The risk with Forex inControl comes from the risky trading method – you'd better check out our tips on how to tackle dangerous Forex bots. These include regular withdrawals of profits and working with a cent account.
The Forex inControl is quite expensive for my personal taste, but in case you have fallen for it, you can purchase it at the designated website. One-year license for one account will cost you $205, but be careful as extra fees may apply. For instance, value added tax raises the price to nearly $250. On the brighter side, there is a 30-day money-back guarantee.
Any opinions and statements in this article are strictly subjective and should not be treated as investment advice. Forexbrokerz.com and all of its authors are not affiliates of any of the discussed signal providers, expert advisors and their vendors.
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