Forex Bulletproof

[pharoh777]

Here is the first entry to the list of losers. I'm not sure why I chose this one first, they are all terrible if they make it into this folder. I just checked out their website to see if it was still there, and surprisingly it was. They have an account statement showing insane returns on verified live accounts.....blah...blah...blah. Check it out here if you want: Forex Bulletproof Vendor Page Also the page is filled with comic book images (fantastic professional forex for sure!). I mean with statements like "it only goes up, it NEVER goes down!!" and "look at this smooth equity curve" (FYI, notice the equity curve is a zig-zag line). Turns $10,000 into $120k plus in just two years!

Wow, from the look of the site, you might think this would be an amazing EA. I sure did. When it was launched there was so much build up and "excitement" for bulletproof. I anxiously awaited release and bought it and couldn't believe consistent gains, with an EA that adapts to the market and was tauted as the "safest way to trade forex". The following is how it works and what happens when you use and EA like this:


Forex Bulletproof Reject Review:
(Released September 2010)

Let's just cut to the chase, forex bulletproof does this:

1. Every Wednesday and Thursday at 1:00pm EST (New York, US) it opens a long trade on the EUR, price doesn't matter
2. It has no stop loss and a 7 pip take profit.
3. If price moves in your favor to 7 pips, it closes that order and opens another
4. If price moves against you 10 pips, it opens a second order DOUBLE the size
5. If price continues to move against you it keeps opening orders every 10 pips against you DOUBLE the size of the last (anyone freaking out yet?) Yes, 100 pip move would mean 10 orders that have doubled every time so if you started with .1 by the 10th order you are trading a 51.2 size lot!!!!!! (not that your margin will handle that)
6. It depends on retrace to close all orders when they reach net profit on a retrace

So how safe does that sound already???? NEVER lose????? NEVER???? REALLY?????

WRONG! WRONG! WRONG!

Here's what happened to my real account using their recommended settings. Ok, for the first few weeks, steady gain. I'm thinking wow, it does make money every time it trades. The EA depends on a slowdown towards the end of the NY session when there is still volume to move the market but London is closed so moves tend to be a little slower NORMALLY. You know what happens every once and a while though??? Well a microscopic organization with no bearing on any market (can you taste the sarcasm yet?) called the FED makes its announcements during this time period. FOMC affect currency price on the Euro??? Naahhhh, bulletproof never loses anyway so what the heck.

So in one session the Euro took a nose dive and kept diving and NEVER CAME back enough to put this EA anywhere near profitability. I eventually ran out of margin and trades were closed out (martingale/grid combo EAs work perfectly theoretically ONLY if you have an unlimited amount of capital). The numbers speak for themselves

Account Gain from EA before single disaster:
+49% Gain over a period of 6 months

Account Loss from Single Set of Trades:
-61.63% BLOWOUT OF THE ACCOUNT!!!

Sorry, but what good is making the profit if the damn thing blows it for you in one swipe!?! There are those who say that you should build it up and then take $$$ out periodically. The problem is you NEVER know when that HUGE loss is coming and what if while you're waiting for the 20% gain to remove (I tried to be conservative for argument's sake) you get a 50%+ blowout. Then how hard is it to get to breakeven????

This EA was sold as being a SAFE, SUPER-SAFE, slow gainer. That's just not what you get from a grid/martingale combo


FAILURE REPORT REASONS:

1. It is a martingale/grid combo which we know is the WORST type of system per our due diligence procedure
2. There were NEVER any updates after first month! All my EAs that are in the portfolio now have had at least one update every once and a while! The vendor continues support after the sale. Bulletproof was launched and then NADA after a minor fix one month after release. Not even a performance email update. You could tell this was a marketing machine set to be a ticking time-bomb.
3. Entries were based on an arbitrary time in a fixed direction. This is an INSANE way to play a market as dynamic as forex, but then again, grid trading attempts to take that dynamic market in put into tiny little boxes. Great for neat freaks, bad for profit making. Any good system uses more discretion than simply at time X make the same long trade on the same two days every week to get the grid started
4. Live Peformance Speaks For Itself:
   
   1. -61.63% single trade blowout
   2. -42.69% overall loss
   
   

Overall, please steer FAR CLEAR of this stinker!!!

And that my friends is our first reject on the list!!! Let me know what you think about it!

Please stay tuned for more in the future as I dig into my graveyard of EAs and pull out the ones that everyone here should AVOID!!!

[capsmart]

I will agree with everything except for the update. It was doing exactly what it was meant to, (ruin the account), so no need for improvements.

[pharoh777]

Vassilis, that was pretty much the most intelligent thing that could be said about this EA my friend. Thank You!!! If the trading design is failure, there is no need for an update!!

Kudos Sir!