Forex Funnel

Summary: This forex robot is designed for people intending to trade with larger accounts ($2,500 min, best with $5,000). Needs minimum leverage of 200:1. It uses a Martingale type of strategy. Many people swear by Forex Funnel - but it is for more experienced users. Not good in a rising market. Great in a USDJPY falling market - when you see a falling market trend, turn on Forex Funnel and let it go nuts on profit mode. Turn it off when the trend goes back to rising.

Forex Funnel is made by the same guys as the Forex Boomerang and the Forex Tracer.

After signing up you will be supplied with the Forex Funnel Expert Advisor and a DLL program file Which handles your license), as well the usual install manual. They also provide a free indicator, but that is not related to the robot's performance.

You are buying a single account user license, and from a web page Forex Funnel give you, you can change which account the funnel works with. You will use this web page to change it from your demo account to a live account. 

There's not much you can configure or change in the settings. Mostly you can set the days you trade, and the lot sizes you will trade with. Basically the strategy used is locked in.

Forex Funnel say it's designed to trade the USDJPY pair on a 1 hour chart but actually you can trade profitably on other pairs. It is best to go with what they recommend, so stick with USDJPY as there maybe some aspect of that pair they are exploiting.

The Forex Funnel only comes with an email based support. Be prepared for 1 or 2 word answers. Sadly there is no support forum and they do not reveal what market conditions this forex robot is suited to.

So you will be on your own working out many things - but then again, with most settings locked there is very little that you can tweak or play with. The strategy will therefore work as they have designed it.

When setting up Forex Funnel the documentation provides a guideline that you should use 0.01 standard 100K lots for every $2500 (or 0.1 mini 10K lots for every $2500).  Because its trading strategy is Martingale in nature, if you use more than that your equity curve will experience very wild swings and you will risk blowing your account up.

The minimum account size you can use Forex Funnel for mini accounts is $2500. Less than that and you will also see wild swings in your equity curve.

If you do trade this system, you are going to need at least 200:1 leverage.  I would suggest even getting 400:1 to 500:1 leverage.

You cannot safely trade with the default 100:1 leverage that comes with their recommended Alpari broker, however, if you ask nicely Alpari will give you 200:1 leverage.

Forex Funnel is a grey box system, meaning that you don't get the source code. The logic is proprietary. As an end user you have  only a few parameters you can set.  Actually it is quite difficult to figure out what the system actually does.

I did learn that;

• Forex Funnel enters trades as soon as you start it up. It opens a Buy trade, a Sell trade, and a Sell Limit trade (in a tight profit target and a wide stop.
• Forex Funnel exits a trade when the 'take profit" (TP) of the open Sell trade is reached. If there are other Sell trades open, they are all closed at the same time (not the Buy trade, however) and a new Sell is opened with a lot size of whatever you have it set to. It also opens a new Sell Limit, again at twice the lot size of the current open Sell.
• If price reaches the Sell Limit order, Forex Funnel changes the existing Sell trade’s "take profit" (TP) to match the new Sell that was just opened and it immediately opens a new Sell Limit with a lot size twice as big.

Forex Funnel seems to have a bias towards the short side of the USDJPY market.  However, other users have reported that the system doesn’t seem to loose money on the long side of the market - just that it does not make much either.

The USDJPY also seems prone to gaps over the weekend. So, you can expect to see some bumpy rides on the equity curve by Monday morning.  This goes back to having good sized accounts to weather both the Monday morning gap and the bullish trends on the USDJPY.

Due to the Martingale nature of the system, there is potentially quite a risky side to this system. In the back testing logs some position sizes exceed 250 lots. That's a lot of hurt-potential if your account is not big enough to cover it

As one user said;

"It increases the position sizes in a rising market. If the Sell Limit price is reached, it opens another Sell limit at 20 pips higher than the current Ask with a lot size twice as big. This is where it can run into trouble, but with a size of .01 it would take a long, extended rise in price with little or no drops."

Adding to this is that many brokers will not let an account get to even 50 open lots unless the account is very large (bigger than $100,000).

With Forex Funnel you need to beware of the wide stop loss setting and the Martingale nature of it, which make it high risk. Most experienced traders will not trade with Martingale systems because when things go against it, it doubles its positions to recover. 

If you are going to work with Forex Funnel, you will need to;

• Keep your initial deposit small, but larger than the recommended $2,500 and never trade Forex Funnel with capital that you cannot afford to loose. $5,000 is best. 
• Find a broker who allows 400:1 or 500:1 leverage to ride out some bad trades.
• Withdraw large portions of your profits from your trading account regularly or one big loss will take it all away.
• Avoid trading this system in a rising market. Watch the currency pair, and when you see a falling market, turn on Forex Funnel.
• Watch for it escalating Martingale positions in rising markets. If you catch it building up more than 4 - 5 Martingale positions, consider wearing the loss sooner rather than later.
• As much as you might be tempted by greed, do not exceed the developer’s recommendation on leverage setting as this will only accelerate your chances of blowing up your account.

Conclusion

Forex Funnel is a powerful system when the USDJPY is falling. But it is not an automatic money maker for newbies. This is for experienced Forex traders who will have the knowledge to recognise a rising/falling market trends. Only to be turned on during a falling market. Price: $137. Full 60 days Clickbank money back guarantee.