Forex Replicator Review and Test Results

[pharoh777]

Forex Replicator Review and Testing:

Hi All!!! I'm back with another brand new product for the forex market and you know what? This one's a little different than my normal EA tests!!! Before I get to what makes Forex Replicator unique and intriguing, a little background. First off, big thanks to the vendor for providing us a test copy of this new product. Also, they have been VERY helpful in answering all my question that I had so I could give everyone here the best information possible. Let's find out more!!


What Is Forex Replicator?
Forex Replicator (FR) comes to us courtesy of the creator of Forex Growth Bot EA (William Morrison), one of my personal favorite expert advisors of all time. Forex Replicator is a semi-automatic system for many pairs in the forex market AND Gold & Silver. Wait Omar..... did you say SEMI-automatic? Yes I did. This system's a little different remember? So Forex Replicator consists of two parts that work together. The first part and really the very core of the system is the indicator that goes on the bottom of the chart. This indicator takes historical charts and analyzes them to see if there are any similar patterns that have happened in the past. It takes this information and decides what will happen "next". It assigns a % of accuracy to the prior pattern compared to the current one meaning that a higher % equals a closer match to a pattern that occurred in the past. Since the old adage "history repeats itself" is very true in forex, I feel this novel approach may be a very nice addition to our trading toolbox. The second part of the system is a trade management EA (you didn't think I'd do a review in robot test without at least an EA being PART of it did you?). What this EA does, is manage the trades that come from the signals. THE EA DOES NOT PLACE THE TRADES, just fires signals and manages trades. YOU decide when to pull the trigger. So for everyone who LOVES to interact with their EAs, OR for those of who you simply can't trust the EA to run when you're not watching, this might be the product for you!! You can adjust what % accuracy the signals fire and everything. Higher % for accuracy means less trades, but more winners. Lower % means more trades, but lower probability of a win.

This brings me to why this system is semi-automatic and not like a normal EA that finds signals, opens trades, manages them, and then closes them according to it's internal set of rules. Two words: EXTREME VERSATILITY. This system can be traded on ANY TIMEFRAME!!! For those of you who like faster market action and more trades, drop it down to 5-min and watch more trades happen. The smaller timeframe trades come with much smaller stops and take profits. Don't want to have a frantic day in front of the screen? Set it to 4-hr and only check your monitor every four hours since this doesn't fire signals in the middle of candles but rather at the end/beginning of candles. Or trade any timeframe above or below the examples. In addition to the timeframe versatility, the % accuracy of the pattern matching is completely up to the user. So the combinations are almost endless right there. You trade the sessions YOU want to and never have to worry about a trade firing in your absence. Another major reason I believe the vendor did not make this fully-automated is because this system works very well as CONFIRMATION for other systems. You just shorted on the 1-hr chart from your own methods, and at the same time or soon before/after FR fires a signal on the 1-hr in the same direction, you can have much more confidence that your trade. Or you could want to long on a higher timeframe, and use FR to find an entry on a smaller timeframe. Again, versatility and control make Forex Replicator very uniqe in a world of "black box" fully-automated EAs.


Specs for Forex Replicator:

Another nice thing about FR is that setup is very easy. Add the indicator, add the EA, set your % of accuracy you want to trade and you're done!! Here's some important specs:

1. Pairs Traded: The basic version gets you the EUR/USD and the GBP/USD. You can upgrade after purchase and add Eur/Jpy, Usd/Cad, Usd/Chf, Usd/Jpy, Aud/Usd, or Gold & Silver (all pairs are sold separately with the exception of Gold & Silver which is sold as a combo for a slightly higher cost)
   
2. Cost: $87. This is certainly on the reasonable end of the cost spectrum in my opinion. Additional pairs are $87 and the Gold & Silver combo is $127. All prices USD.
   
3. Licenses: Each purchase gives you one license for one account for pair(s) purchased. The license manager is web based and switching between accounts takes literally seconds.
   
4. Refund Policy: 60-day money back guarantee through ClickBank which in my experience has never been a problem getting a refund through.

Trading Forex Replicator:

I have been experimenting with Forex Replicator for the last few days and once you understand the process of how it works, it's a snap and very easy to use. After you input your settings and decide what pairs and timeframes trades work like this:

1. Forex Replicator produces a signal with an audible alert
   
2. You open a trade at market in the direction of the signal WITH THE COMMENT FILLED IN THE SAME AS IN SETTINGS. This is how FR manages the trades. When placing the trade, before hitting the "buy" or "sell" button, you simply fill in the "comment" section with the same "identifier" as in the EA settings. For example if the "order comment" in the EA settings is "FR" then you must put "FR" in the "comment" portion of the trade opening screen and Forex Replicator will manage the trade
   
3. Open the trade, and you're done!!
   
4. Wait for the next signal, Forex Replicator can handle multiple orders being opened at different times as long as the same "order comment" is filled in the same as in the EA settings for all orders opened for that pair.

I invite everyone to go check out the vendor website for even more details about this product by clicking the banners at the top and bottom of this post. Also, please use the links on our site if you decide to purchase because although I am not personally an affiliate of ANY product I test, buying through the links here helps cover the cost of the site, and lets me bring you the best, most honest, informative and supportive experience I can in the crazy world of EA trading. I will be personally trading this EA myself on a demo account during all the different sessions throughout the week mainly during times of high volume. I am going to attempt to take trades in a reasonable fashion that closely resemble what another trader could accomplish with a few hours of screen time a day. I never want to promote a system that requires you to be glued to the screen for hours on end. I take trading very seriously, but at the same time I want to trade this system casually enough so that everyone who buys it can expect similar results. If you want to devote 12 hours to trading the signals, be my guest, but I'm going to devote some choice, targeted times to trade this system and you can monitor my results when I get the MyFxbook link setup very, very soon!! I have taken some trades already and I can tell you I like what I see so far!! I truly hope Forex Replicator turns out to be very profitable in addition to the interesting system it already is.

[raa]

Looking forward to your results, Omar. As usual big kudos to you for doing the hard part!

[pharoh777]

Awww Raa, thanks!!! I really appreciate that!! I'm going to do my best to give this system the best shot to make money. I like the different approach to entries! So far the trade manager seems really, really good too.

OHHH. And I just set up a brand new, shiny Pepperstone-Razor demo account to test it on. Here is the myfxbook link so everyone can see my trades when I get them:

[pharoh777]

Hi Everyone!!!! After two days of trading this on the demo account for our forum here, one word: IMPRESSED! Please keep in mind I am using it on a very small timeframe with a rather high accuracy %. Can you say FOURTEEN consecutive wins???? I brought the account from drawdown to b/e to a slight profit in one session around London open to 3 hours in. Four hours of work, that's it. The only "major" loss (-30 pips, lol) occurred right before news came out on the GBP (I was so tempted to trade it, I forgot, my bad, I'm not perfect) but the subsequent trades have been very nice. So consider if I had been a more disciplined trade and avoided trading around the news, we would have even more profit! Here's what I've found so far:

1. Easy, easy, easy To Use: You don't have to even watch the charts, just stay near the computer. Wait till you hear the audible alert, see what pair and if its a buy or a sell. Enter the correct comment and hit buy or sell. Done deal. Go back to doing what you were doing.
2. YOU Decide if It's a Good Time To Trade: I worked when I felt like it. I went out and did stuff yesterday afternoon, and had a great day. When I got home, if a signal fired and I was close, I took it. When I decided to dedicate time to trading (I ALWAYS try to trade London open. My fav), I took all the signals that fired.
3. Trade Manager Is Wonderful: The trade manager handled the trades famously. It handled up to 3 orders on the same pair at once (I imagine there is no limit to this, it's just what I had going at the same time), even when 2 were long and one was short. It moves the stops, closes losing orders early sometimes so you don't have to take a full stop, adjusts take profit levels on the fly, and runs completely hands-free.
4. Very High Win %: 83% win rate with 11/11 shorts won and 4/7 longs won from last nights trading. We are sitting on a 71.4% win percentage overall which is good because our average loss is almost double our average win so far. Keep in mind if the average win is exactly half (and we're doing better than that) of our average loss, any win % over 66.7% will keep us profitable in the long run. It's hard to say that's what we're seeing after 28 trades, but these numbers are very encouraging.
5. Had No Problem Trading Choppy Market: This was SUPER impressive. As I saw the market whipsaw back and forth, I just kept taking signals in both directions. As you can see from the results, most of the trades won!! I couldn't touch that market with my other manual systems, and even our beloved FGB couldn't gain from it, but Forex Replicator made solid trades that won. I would be VERY, VERY happy even if this system ONLY worked in these kinds of markets, but I don't want to sell it short in any way by assuming that. Maybe we'll see bigger trades from a trending market. Only time will tell. But for now, having a system that can navigate the ugly, bipolar markets we've seen lately is pretty cool.

It's nice to see a test get off to a good start. We saw a little drawdown (trading around news, BAD Omar, bad Omar), but afterwards, some pretty nice gains. I certainly hope this continues. If it keeps up like this for the next couple of weeks, I'm pretty sure I'd be comfortable going live with this one. Again, I love the fact that I decide how much it trades. And at $87 for the Eur/Usd and Gbp/Usd combo, it's a pretty good deal especially if the numbers keep up

IMPORTANT NOTE: If you do decide to use this product, MAKE SURE YOU DOWNLOAD A FULL HISTORY ON YOUR MT4!!!!! This system uses HISTORICAL price data to search for patterns and the more data it can use, the better the signals will be!!!

I'm going to trade London open again tonight to see if we can keep the week in the green!! Check the stats for yourself:

And for those who wish to join us, you can use the banners at the top or the bottom of this page. Also, if the results keep up and this makes it to the live account, I'm going to add Gold & Silver to test next. We don't really have any metals trading going on here so maybe it could be a good addition. Stay tuned for much, much more!!!

[raa]

Good work, Omar. Looking at its RR ratio it reinforces Vassilis' point that when trading short term you need to accept losses larget than wins due to certain unpredictability of smaller moves.

[pharoh777]

That is an EXCELLENT point Raa. And I'm not surprised that Vassilis made a point about that too. Yes, smaller timeframes are very different than larger ones because of the "noise" you see AND the fact that until your trade moves a bigger distance the relative spread/commission (they are the same thing) vs. [t/p]/[s/l] is a huge percentage where as on a larger trade, the spread in and out of the trade and commissions paid are barely even noticeable as a percentage of the win/loss. So the overall impact on smaller-move trading is greater.

That being said, I only chose the smaller timeframe to start for three reasons:
1) I figured we would see the most trades this way while I still maintained a very high % for accuracy in signals
2) I figured if it could make profitable trades on the small timeframes, it would work great on larger ones (as Raa mentioned smaller timeframes' movements are much more unpredictable)
3) I figured it would give us a baseline to see where to go next with the test.

So in the future, I do plan on testing this on other timeframes and see what happens. If anyone decides to get this and trade with it, PLEASE, PLEASE share your results and we can all figure out the best approach to this EA/system. Remember, this is a work in progress and although the results so far have been VERY promising, I think we have not realized the full potential yet. Only time will tell!! Will we have a monster week this week and launch FR into massive profit?? Or will the system struggle a bit?? Stay tuned and find out!!!!

[tonynz]

So Pharoah, the results are not looking too good. What happened? :-)

[raa]

This one needs to win a lot to pull in profits..

Average Win:	5.23 pips / $15.25
Average Loss:	-9.69 pips / -$35.24

I am slowly but surely trying to change my view of successful trading from high-win rate mentality to high-reward-ratio mentality. More I read about great traders (Marty Bull Shwantz, Rich Dennis "Turtle master", Louis Bacon, Tiger-breed, etc) more I realize you should be willing to give away pips/dollars from time to time but in small numbers in order to find few but substantial games. This is the only way working long term in poker, black jack.

I must say I am yet to see any successful mechanical system with negative risk-reward used. FGB uses "many small losses few big gains" approach as seems successful in a long run (it's been out there for a while), while MDP does have a max stop loss of 20 pips and most profits are much less, it still has average loss smaller than the average win, even if its nearly defunct lately due to completely different market on EURO.

So we are yet to see a workable system with a negative RR in action, but Capsmart gives some good hopes with his price action method. I am, though, have some deep-rooted internal objections against it, and will continue to follow a route paved by traders like Dennis that I admire a lot.

[pharoh777]

Hi Raa!!! Thank you for the insight!!! Yes, negative r/r systems are not the prettiest way to make profits but they do work!! Look at Megadroid!! It has been profitable every single year since I've owned it and it has a reward risk of 1/6-1/10. But it wins over 90% of it's orders. Remember overall profitability is the equation between win % vs. r/r. So in the case of a system like Forex Replicator we are looking at a Reward/Risk ratio of 1/2. So we have to make two wins for every loss to break even or 66.7% ANYTHING HIGHER THAN 66.7% win percentage will be profitable!!! Period!! And also I am testing this EA on 5-min timeframe which tends to have a negative R/R in general for systems of this nature. You made the comparison to MDP, and EA that has been profitable in 2012 on both accounts I have used it on albeit not as profitable by any stretch of the imagination as 2011. It has a negative r/r as well for the most part but wins a higher percentage of its orders. When I started trading I never thought that someone who only won 1/3 of their trades could be profitable. But this by contrast is the power of a positive R/R!! So if the win % is low, the other side of the equation has to be higher.

Raa, on a side note, A HUGE THANKS, for all you contribute!!! I deeply respect you as a far-superior trader to myself in many facets of this market including overall market knowledge and I want to say that when I see you post, I rush to check what you've said. Please keep up the good work my good man!!!!

Back to Forex Replicator: I am not sure what the R/R would be for higher timeframes but it may change!! How about this Raa, next week I'll use the 15-min charts and see if that changes the R/R. We will track the trades on the higher timeframe and keep going up the ladder of timeframes to see if it changes the trades. Right now, all systems seem to be struggling in the current markets, but so far, I do like the way Forex Replicator trades. Only time will tell if this is going to make it to the live portfolio though. For now, we'll keep testing away. Also, I have not traded many trades this week because it is my birthday on Thursday and I have a ton of friends and family around doing lots of stuff at the moment!! I apologize, but back to normal next week. I'm only taking trades that I'm around to catch, instead of working an 1/2 or a whole London session.

[raa]

Omar, I am most certainly looking forward to your further test, keep doing that great work. Systems that require huge number of trades and very high win % to stay afloat may be slightly profitable to the trader, but boy how they profitable to the brokers!! I can certainly see how they push development of such systems with vigor

Thanks, for your kind regards, but I believe you very much over-exaggerating things.

PS MDP-wise you were very lucky to miss last NFP, this (after March's hit) trade turned my 2012 into red.