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Forex Hacked is an expert advisor built for the Metatrader4 platform, which the platform of choice for forex traders across the world.
The underlying design philosophy of Forex Hacked is simplicity. Thus the developers have kept the number of settings that can be changed or optimized to a minimum. It is aimed for the novice entrant into the forex trading game, to enable making profits, without having to work too hard to understand the underlying logic.
The product also comes with a detailed user guide which explains the settings that are available. The other highlights of the product according to the developers are its reliability, and the trade frequency.
The Forex Hacked EA uses a double-sided martingale as its core strategy. It enters a trade based on some very basic and simple indicators. If the trades are not profitable, it opens more trades, with higher lot sizes, thereby increasing the chances of a profit as soon as there is a winning trend.
Hedging and break-out trading is used to protect against large drawdowns. As a result, the EA is able to make money in almost all situations, and the key thing to focus on is to control the drawdown or to keep sufficient margins to enable the EA to continue trading in spite of a large drawdown.
If you do not have sufficient capital, it is best to stay away from this EA. This is because, a martingale strategy, though sound in theory, often does not work in the practical world where the resources (both time and money) are limited. It is a gambling strategy and unless you get an adrenaline rush out of a high risk high reward strategy it is best to stay away from it.
It does not follow a scalping strategy. Thus it is able to ride a trend fully, and with each trade it is able to generate the maximum possible profits. It has a default setting which operates 23 hours and on 5 days of the week. However, users have the ability to override these settings to make it run 24 hours and on all days.
Forex Hacked runs on the H1 timeframe and is optimized for the GBPUSD currency pair. However, users can run it on the EURUSD, USDCHF and USDJPY pairs as well, though the results may not be as reliable as the GBPUSD pair and you will be unnecessarily increasing your risk exposure. It is meant to trade frequently and will typically generate an average of 5-10 trades every day. For large accounts, the recommended leverage is 1:100 or 1:200, whereas for small accounts less than $5000, the safest leverage is 1:300 to 1:500.
One negative about this EA is that it is not NFA compliant. So, you will have to use on a non NFA regulated broker or an off-shore broker. There are plenty of offshore brokers available that run on the Metatrader platform so that should not be a concern. However, the strategy itself has a lot to be concerned about as you will soon see in the back tests section.
Surprisingly, unlike most EA websites today, the Forex Hacked EA website is not professionally maintained. It does not have any back test results. The developers claim that back tests cannot be trusted and hence they have not included them. However, back tests are a solid way to test the robustness and risk controls in any EA strategy, and the truth maybe that the Forex Hacked EA is not up to par in these areas. When back tested, the EA may confirm one’s worst fears of it being an account burner. They have performed few other back tests as well and none of them have given impressive results. All back tests had very high draw downs and the developers have done nothing to address this risk or offer any form of protection strategies.
So, unless you have a really large amount of money to just splurge on a gambling spree, it is best to stay away from this EA. After all, there are better products out there in the market that can protect your capital better and still offer fairly consistent results. If you love gambling though, this is an ideal product for you, as it can offer triple digit returns in a very short span of time – something which other trading platforms may not be in a position to offer, thanks to their more robust risk management plans.
A test run on the USDCAD currency pair at myfxbook.com during the period 1 April 2007 to 9 November 2012 gives interesting insights into this EA. It had a initial deposit of $200000 and generated a total profit of $1046745 during the test period. That was a whopping gain of 523%. However, what is alarming is the drawdown rate of 61.84%. For most EAs, even a drawdown of 20% is seen as alarming. Thus, the Forex Hacked EA is definitely not for the faint hearted, or for those who worry about capital protection. It had a 70% winning rate for trades, which is quite good. Both shorts and longs have generated profits which means it is able to correctly capture the trend in most cases.
Forex Hacked EA is quite powerful and can generate frequent trades. It has the potential to give you 100% returns in less than a week. On the other hand, it can also suffer huge drawdowns if the markets are bad, and you are running on a high risk setting. One strategy to optimize this high risk high reward EA is to run it with moderate risk settings, double your deposit, withdraw your earnings and start afresh with your initial deposit. This will ensure that your capital is protected at all times, after the first successful run.
Just as in the case of any other EA, even this one should be thoroughly tested before you decide to use it. However, the Forex Hacked EA does not have a refund policy and that is a dampener for those who want to be absolutely sure of a platform before committing to it. The membership comes in two forms – basic and pro. The basic membership gives access to Forex Hacked 2.5EA with an ability to run on unlimited demos and one live account. On the other hand, a Pro membership, gives access to the Pro version, which according to the developers is more profitable and trades more frequently – in fact, upto 4 -5 times the basic version. It also offers the ability to use 2 live accounts – one for the 2.5 version and one for the Pro version. The Pro version is different from the 2.5 version and not an upgrade, hence it is better to use a different account on each of them. It is a relatively cheap EA and is priced at around $169, but when you buy a forex EA product, the license fee should never be the criteria for your selection – you are after all, going to trust your money with the engine and it better work well!