Today we take care of one of the Signal Provider that, like it or not, has formed the Zulutrade history, the famous and discussed FX178.
Curious of testing our evaluation system and its IDR, we have divided the review of this Signal Provider in two articles, referred to two different historical periods.
What you will read below takes into analysis the time range from July 2010 until now, while the second, visible just for the Elite users, will analyzes this Signal Provider until October 2, 2011, the day of his greatest splendor, before the great fall.
Would we been able to defend our account with our system? Or would we stumbled and fallen into the 15k pips abyss?
Signal Provider FX178 – The big bluff – Download the Free Mirror Trading Guide
The Signal Provider Fx178 is an automated system, cleary martingale style, which operates by entering on the market with a position without stop loss and with a profit set at times to 15 pips.
In the countertrend phases this EA mediates the price of the first operation by opening one or two new operations every 15 pips, in the same direction of the first one.
The trading phase is managed, closing some parts of the negotiations, only when reached a target considered profitable by the money management used by the Signal Provider.
This logic brings the Signal Provider’s system to mature, at certain times, a very large number of positions open simultaneously (virtually infinite), which historically has been proven to be a maximum of 43.
The average profit calculated in the period under review is 11 pips with a maximum recorded gain of 399 pips and a maximum loss of 757 for a W/L ratio of approximately 1:2.
This negative index is counterbalanced by the percentage of successes of this Signal Provider, that stands at 68 %. The average transaction time is two days and, and even if, in the beginning of this EA activities, different trades in various currencies were recorded, currently the only cross traded is GBP/USD.
The minimum amount recommended by the Signal Provider, 1000 USD per 0.01, makes us understand the high level of stress to which our account will be exposed if we decide to follow FX178, because by the way, the 72 % of DD is not a joke.
What we of Money Building notice is that this trading system still failed to recover the massive losses that occurred between the 3rd and 28th of October 2011, 9000 pips are still missing, to which we must add -3600 pips of open positions in the moment we are writing this post.
This Signal Provider is not used in any of our account, due to high level of stress in which our account would be taken by this Signal Provider’s logic.
Signal Provider FX178 – The big bluff – Watch the Free Mirror Trading Video
| PSYCHOLOGY: | |
| Suitable for those who want to risk their account to fall vertically | |
| PRO: | CON: |
| -Profitable operations percentage | -Average gained pips - W/L ratio - number of operations open simultaneously - huge drawdown |