It is real or is it a scam

Forex Funnel is one of the newest Forex trading robots to enter the market. They have a fantastic back testing graph on their homepage showing a very smooth upward equity graph, with a high success rate, low drawdowns and a net profit of more than $400,000 from 4 years of trading.

Forex Funnel

I spent hours online looking for actual customer reviews of the product, but all I found was general overviews containing exactly the same info that was already available on their webite, which isn’t a lot. So I decided to purchase the product and see for myself if it really is the profit pulling system that they say it is.

..So is Forex Funnel the real deal or is it a scam ?

After testing the system for a week I can say that this product is definitely not a scam, but it is also not suited for everyone. Forex Funnel uses a high risk, high reward trading strategy that can make you a LOT of profit, but it can also wipe out your account quickly if you are not careful.

Compared to Fap Turbo (the most popular Forex Trading Robot), Forex Funnel is a much more risky system that requires nerves of steel and a lot of starting capital to achieve roughly the same results. Nevertheless, if you are looking for an exciting system that produces high returns and you are prepared to take the risk, then Forex Funnel could be the product for you. See the full review below for more details.

What’s Included in The Package?

As soon as you purchase Forex Funnel, you get access to the following downloads:

• The Forex Funnel Robot
  The Forex Funnel system itself comes in the form of an Expert Advisor written for the Metatrader Forex trading platform. The system performs anything from 10 to more than 50 trades per day and constantly has at least 2 or 3 open positions in the market. Not much is known about the indicators it uses to enter trades, but the main trading strategy seems to revolve around the Martingale principle, which is also the thing that makes it risky. More about this later.
• The Goldminer Indicator
  According to the creators of Forex Funnel, the Goldminer indicator was originally meant to be sold as a unique Forex product on its own, due to it’s accuracy. Goldminer consists of 2 indicators working together to generate trade signals. I spend a few minutes looking at Goldminor and the signals it generated seemed to be quite accurate. The trading signals work as follows: Purple Arrow + Red = Sell,Yellow Arrow + Blue = Buy. See a sample chart here.
• Documentation
  The package includes a manual for the main Forex Funnel system as well as the Goldminer indicator. The manuals give basic installation and setup instructions, but no further details are given regarding trading strategies.

Is Forex Funnel a Profitable System ?

Commercial Forex trading robots usually have great results in backtesting, so I’m going to assume that the report they have on the Forex Funnel website is accurate and instead focus on real trading results that I achieved in my own trading account. I activated Forex Funnel in one of my demo accounts and let it trade for me on complete auto pilot for a period of one week to get a quick insight into how the system works.

During this week, Forex Funnel performed no less than 250 trades and made a net profit of $407, from a starting capital of $5000..very similar results to what I achieved with Forex Autopilot. Expressing the profit in pips is not easy, because varying lot sizes are used, but with a default lot size of 0.1 lots I guess you can say that this is a net profit of +407 pips. At first glance these results look very good, but the real answer to the question of profitability lies in the actual trades performed.

While there are part of this system that I don’t quite understand yet, the trading records shows definite evidence of some kind of Martingale strategy. The basic concept of the Martingale strategy is to double up after a losing trade and continue doing this until eventually a winning trade is found, which will cover the losses of all previous losing trades. There are many examples of this in the Forex Funnel trading results, but let’s look at one example:

Trading Log

It is quite clear that a Martingale strategy is followed here. A short trade of 0.01 is entered at 95.96 and when the trade starts making a loss, another short trade of 0.02 lots it entered. Price continues to rise and every 20-25 pips another short trade of double the previous trade’s lot size is entered. This continues until 10 trades have been opened and the price finally retraces by 20 pips from 97.91 to 97.71. The 20 pip profit with 5.12 lots is enough to cover the losses of the 9 other losing trades and all trades are then closed at this price, resulting in a breakeven situation.

This strategy has a near 100% success rate, but you need a LOT of capital to cater for long losing streaks, because one losing streak can effectively wipe out your account with a margin call. In this case, if the price continued to rise, my $5000 account would have been wiped out very soon, but lucky for me the retracement happened.

Conclusions and Recommendations

The Forex Funnel system is a high risk, high reward type system that is not for the faint hearted. If you do decide to try out Forex Funnel, test it on demo first and if you do decide to go live, I would not recommend running this sytem with less than $10,000 starting capital and a default lot size of 0.01. However, I only tested the system for 1 week and some of my conclusions may be proven wrong by a longer case study. The Goldminer indicator shows some promise, so even if I never trade with the system in a live account, I feel that I didn’t waste my money on this system.

After all that is said and done, I would still recommend Fap Turbo as the preferred Forex trading robot to most traders, simply because it is $40 cheaper, it does not use a Martingale strategy and it also has a very high success rate. See my full review of Fap Turbo Here.