In this post, I’m going to review Forex Device EA, a forex robot that claims to fulfill the expectations of traders!
Well, in this review we’ll see how realistic that slogan is.
My first impression of forex device was when I saw its website. A plain single page which has been designed in an old-fashion way.
Ok, let’s see how helpful the content is…
…actually not much. There are basically words saying how profitable forex device is but it isn’t stated much about the strategy of the EA or something about the developer, however, the vendor has provided a statement of a real account from FXBlue.
That’s enough for us to see how profitable or loss-making the EA can potentially be so in this review of forex device, we’ll dig into the results of that account and study the stats of it.
But before that, let’s take a look at an overview of forex device
Forex Device EA Overview
|Currency pair||All FX Pairs|
|Real Account Test||Yes|
|MAX Drawdown||Balance: 1.1% Equity ≈ 45%|
|Average Expected Return||3.4% Monthly|
Forex Device Trading Strategy
On the webpage of forex device EA, we don’t see much about the strategy that this EA open positions based on except for a few lines.
It’s mentioned that the EA isn’t a scalping or martingale one and doesn’t use any indicators. It can trade on all forex pairs but is more effective on volatile pairs, the pairs that move the most or have larger average daily ranges.
So there’s a little information about how the system of the EA works, however, from what I see, it’s a very bad grid strategy that lets the trades open for a very long time and allows the losses to grow a lot. That’s why we see around 45% as max drawdown and the vendor decided to close the account with around 32% floating loss— we’ll talk about all those things more later in this post.
Forex Device EA Results
As I mentioned early on, the vendor has provided the result of a real account that is connected to a third party statement sharing website called FXBlue.
It’s always a good sign when you see a developer provide the result from a real account on an independent statistical service site. Aside from the quality of results, it shows that a vendor is serious about what he/she does and wants to prove it.
However, in most cases, they show better results than the real ones, at least on the surface. They try to tamper with some parts or at least don’t show some metrics. Instead, make the positive parts stand out.
It’s the same for forex device EA because the EA is not as profitable, if at all, as you see the graph on their webpage.
What you see is an uprising balance graph showing your account is growing constantly and has nominal losses and a negligible max drawdown.
But is it really like that?
Let’s find out…
Age and Number of Trades
One of the factors that make me take a statement seriously is its age. Accounts with a few months’ statement aren’t worth much because the EAs that have traded on them haven’t seen the different conditions of the market.
Every EA can be profitable for a few months but consistency is something that distinguishes good EAs from bad ones.
The same goes for the number of trades in a statement. The results from 10 or 20 trades are worth nothing.
The minimum number for the age of an account that I consider as somehow enough data is one year and the minimum number for trades which makes a result worth noting is 300 closed positions.
The statement of the account that forex device has traded on includes 464 closed trades and is 476 days old so there’s fairly enough data worth looking into.
The total return of Forex Device EA gained in this account is 71.7%. Regarding the 476 days of the lifespan of the account, we have 40.8 % yearly, 3.4% monthly, or 0.8% weekly profit on average.
That’s not actually an inadequate profit at all. Making 40% per year constantly with low risk makes an EA very attractive, at least for people who know trading.
But is Forex Device EA in that category? I mean, is it capable of making a constant profit with low risk?
For finding out the answer, we need to look at other factors, and the metric considered as risk gauge is the maximum drawdown.
Max drawdown is the statistical meter that measures the risk of a strategy or an EA.
In general, the strategies with lower than 30% drawdown aren’t considered high risk, and the more that number increases the riskier a strategy or EA becomes.
What we see as the drawdown in the stats of Forex Device EA account is extremely low. 1.1% is the percentage that is recorded as the max drawdown of this account.
So technically this EA trades very safely, right?
Well, actually no!
The reason lies in the equity drawdown or floating P/L (profit/loss).
What you see in the above picture as peak drawdown is the maximum drawdown of the account’s balance which is calculated for closed trades.
So we can have an account with 50% floating loss or drawdown but what we see as peak drawdown can be 1 or 2% because the account has a lot of open trades suffering 50% loss.
We can figure that out on FXBlue result page by looking at the historical floating P/L. It is actually the historical equity drawdown and shows us how deeply an account has suffered losses.
When you look at this metric for Forex Device EA, you can see that the max equity drawdown is around 45%. Moreover, the account has been in a drawdown of 20 to 30% for the majority of its lifespan.
It’s no surprise since the EA uses a grid system for money management, therefore, it has lots of open positions most of the time.
And it’s worth noting that most based grid EAs are too risky and very prone to blow up accounts.
It becomes even worth when you see around 32% floating loss or current drawdown. It means that the vendor decided to close the account because it was suffering a fairly large loss and he/she probably thought that the account wouldn’t recover.
Given that fact, Forex Device EA doesn’t trade safely but the opposite, it trades aggressively to a great extent.
Some vendors of EA run them on an account for a few months and when they acquire the result they intended, Stop the EA, but they don’t close the account. Then they rerun it for another few months.
As a result, they have a statement that is old enough but in reality, the statement comes from a few months.
Some other EAs gain the majority of their profits from a few months and for the rest of their accounts’ age, they’ve just lost money.
This is not good either, because your account may be depleted and when the profitable months come, you may not have enough money in your account to recover what’s been lost.
Anyway, forex device EA has traded every month during the 17 months it’s been run on the account and apparently has made profits, more or less, every month.
I said apparently because although it was making a profit every month, the account was suffering a large drawdown, as we saw in the previous section. Simply put, for making 3.4% monthly profit on average, the account has suffered something between 20 and 30% drawdown.
It is not a reasonable risk/reward ratio and I don’t endanger 25% of my account all the time to gain 3or 4% each month.
Forex Device EA Support
There’s only one way that you can contact the vendor of forex device and it’s through email. There’s an email address on the webpage provided as a support service.
However, I don’t think you would get any service.
I contacted them via the email address on two separate occasions but the vendor didn’t answer either of my emails.
When someone doesn’t answer emails before purchasing his/her products, what will happen if you buy that, go figure!
Forex Device Price
There’s only one plan for purchasing the EA and it’s a one-time payment of $153 that you can pay through PayPal.
There’s nothing mentioned on the site about refund policy so I assume there isn’t any. I couldn’t say that for sure because unfortunately, the vendor doesn’t answer emails.
Even if they had told me that they have a money-back plan, as far as they haven’t mentioned that on their site, it wouldn’t be acceptable.
The Bottom Line
After reviewing Forex Device EA, I think this forex robot can’t bring you a consistent profit. Even the vendor of the EA doesn’t think that the EA is a winner because he/she closed the FXBlue account when it was losing money.
In other words, he/she probably thought the recovery from that amount of loss wouldn’t happen and he/she would have lost the account if they didn’t close it.
It’s worth mentioning that you should always be careful about grid EAs because your money is in great danger if these kinds of EAs don’t have a controlled risk management and let losses grow too much.
There are other EAs in our list of the best forex robots that I’ve reviewed and I think they can generate constant profits for you. You can check them out from the following button.