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Price: $99

Forex Combo System

Added on August 23, 2011 11:19 AM
(4.5 / 5)
Trading style: scalping, breakout, reversal, range
Currency pairs: EURUSD,GBPUSD
Time frame: M5
Money-back guarantee: 60-day
NFA compliance: Yes
License: 1 real account ($99), 2 real accounts ($149)

The Forex Combo System has been around for a couple of years now and has been updated several times. This new version includes an extra trading strategy meaning that the EA now uses a combination of four different strategies in one – scalping, trend detection, market correction and range trading. The owner’s commitment to advancing and updating the Forex Combo Systems is testament to the effectiveness of the EA itself and the passion of its maker.

Method

Markets are said to trade in trends for only about 30% of the time. The rest of the time the market spends moving sideways, which is why it is important to have a system that trades well through all market cycles. This is exactly what the Forex Combo System seeks to do.

As would be expected, utilizing 4 different strategies means there is a lot going on within the EA. However, the truth is that each strategy complements the others very well. Indeed, by combining strategies in this way the end result tends to be lower drawdown and smoother equity curves since the bot is able to work not just in periods of trending markets but volatile, choppy markets too.

The scalping strategy forms the basis of the Forex Combo System and tends to perform the most often and most consistently of the four. It utilizes a set profit target of 21 pips although often exits the market sooner depending on conditions.

The second strategy is based on trend detection and uses a number of technical indicators in order to gauge when the market is trending. As a trend follower, this one tends to start with a few losses before finally catching a big trend that more than pays for its previous losses.

The market correction strategy uses average true range and band indicators in order to find reversal opportunities the minute that the prevailing trend is exhausted. The market correction strategy also works convincingly and generally provides as many winners as it does losers with the winners handily beating the losers on average profit.

The final strategy is a range trading system and was also shown to hold up on its own merit. By using sophisticated linear regression channels, the bot is able to find opportunities where the market is nearing the top or bottom of a channel and about to turn the other way.

Another important thing to mention is the presence of a news filter functionality in the newest version, which is very handy – we all know how the market “explodes” sometimes during NFP or other major news events, which sometimes is disastrous. There are a few parameters, which help you take advantage of this functionality in the best way. You are free to apply filtering to any of the 4 strategies you wish. Furthermore, there is a medium impact news filtering, so you can choose whether you want the EA to trade even during medium impact news events. You can manipulate the period, during which the EA avoids a news event – you can set the minutes before and after the event, during which the EA will not trade. In other words, the news filter functionality is flexible enough to take full advantage of it.

The Forex Combo System is designed to work on EURUSD and is hardcoded to trade off the 5 minute chart. The EA also performs well on GBPUSD however EURUSD was found more likely to give a lower drawdown.

The EA comes with a lot of functionality which at first can be a bit overwhelming. In reality, there is very little reason to steer too far away from the default settings.

Risk

Money management settings can be altered between fixed lot sizes or % of working capital, which allows for the reinvesting of profits. The EA also tends to increase position size slightly during poor periods. Because of this the EA tends to generate strong profits at the expense of slightly larger drawdowns (especially when trading GBPUSD). It is therefore advised to keep risk fairly tight with the 2% setting found to be a good level for equity accumulation.

Past Performance

The Forex Combo System website has performed handsomely in the past (as well as in the future). On the website there are a number of historical tests that have been run that show the bot to be an impressive and consistent performer. The tests also show how each individual strategy contributes to the growth of the system as a whole.

The scalping strategy for example, has returned 9500 pips in 8 years equating to a profit of $95,000. The trend strategy has returned over 11,400 pips in 4 years, the market correction strategy 11700 pips in 8, and the range strategy has contributed a further 9500 pips in 8.5 years.

Together with the low drawdown of 17%, the back test results prove that this bot is a top performer. By utilizing the different strategies, the EA manages to win almost 2 out of 3 trades and is able to produce smooth upward sloping equity curves even during stringent testing of 3 pip spreads!

The EA does sometimes have poor periods, but generally these do not last long and are a small price to pay for the large profit it eventually comes to generate.

 

Here's The Forex Combo System running its Scalp Strategy:

 

Here's how the Trend-Detection Strategy performs:

 

Here's how the CounterTrend Strategy performs:

 

Finally, factor in the EuroRange Strategy:

 

Here is how Forex Combo System performs using all the strategies combined:

 

Future Performance

Although the historical back tests of the Forex Combo System are good, it is the future tests of the bot that are of the most importance, and in this regard the Forex Combo comes up trumps again.

Over a number of forward tests, all verified by external parties, including myfxbook.com and Alpari UK, the Forex Combo EA has performed admirably.

A live test of the EA since June 2010 reveals a smooth upward equity curve that has gained over 300% since inception - that equates to a monthly gain of over 4%. The average win generated 33.6 pips against an average loss of -41 pips and with an expectancy of 3.4 pips. The expectancy is good since it confirms a strong system with the ability to generate consistent returns over different market conditions.

Overall, the system generated over 600 trades in this time and won roughly 60% of them. Closer inspection reveals that GBPUSD was incorporated into the test fairly recently. The performance would actually have been better by not including GBPUSD.

 

Forex Monitor Forward Test

 

Conclusion

It is all too easy these days to come up with a brand new EA and speculate how this new system will be the best that has ever been created. However, the makers of the Forex Combo do not do that.

Instead, the people behind the Forex Combo System are happy to work with the system they have already got; making minor adjustments, tweaking settings and bringing in more advanced strategies and technologies. By doing so they are able to craft a system that improves with time.

By combining 4 strategies, the Forex Combo System manages to diversify against all market scenarios thus reducing risk at the same time as increasing profits. The verified forward tests back it up and this is an EA that sits comfortably at the top of its game.


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