PipJet Logo
Price: $97

PipJet

Added on January 14, 2013 06:44 AM
(4 / 5)
Trading style: Asian session scalping
Currency pairs: USDCAD
Money-back guarantee: 60-day
NFA compliance: Yes
License: 1 real account

PipJet is the second product from the experienced and hugely successful Forex Megadroid Team. This product has been released fairly recently. A detailed review of the product, including its underlying strategy and its performance results in both forward tests as well as backtests is given below, so that you are fully aware of what this product offers, before you put your money on the line.

 

Basics- The Key Features and the Underlying Strategy

The PipJet is a completely automatic robot, which executes trades without any human intervention. PipJet attempts to optimize the three key elements of a successful trading environment – namely, the right currency pair, a highly predictable trading session and a robust and unique trading strategy. Based on this they have chosen the USDCAD currency pair, the Asian session and a scalping strategy.

The developers claim to have done a lot of research into this currency pair and its trading patterns in the Asian session and claim that it is the most lucrative pair to trade in as the tick volumes have shown a dramatic increase in the recent past.

Other advantages include the decrease in spread and the highly profitable correlation of the two economies involved. The Asian session has been chosen due to its highly predictable nature which results in the need for only very small stop losses. As a result, the developers claim that there is lower risk and potential for higher profits. The lesser competition in this session and the possibility of faster trades are other advantages of opting for the Asian session.

To prove their point the developers have 5 real money live accounts which have been trading for a couple of years. The first of these live accounts was started on 9 August 2010. It has a low risk level setting, but has still managed to make a profit of $5146 on an initial amount of USD 1000, in just 31 months of trade.

In contrast another live account with a very aggressive high risk rating was started on 13 September 2010 – again, with an initial funding of $1000. This account has a whopping $51,987 as the balance. However, it did have a highest loss of $970 in a single trade – definitely not, for the weak hearted!

Of course, you can choose the risk rating based on your risk appetite and the margins that you can afford. Obviously, a high risk setting would have a much higher drawdown, and if you do not have sufficient margins, you may not be able to remain in the game for long. It is also important to select this carefully, as too conservative a risk setting may prevent you from generating the truly spectacular results that this robot is capable of giving to a forex trader.

The other accounts were started at different points in time, and they all have given handsome returns over time. This is one robot where you can safely try the high risk setting – unlike in a trend based strategy, the use of a scalping strategy allows you to take high risks without worrying too much about losing your initial deposit.

The developers have tweaked their model in a general account for about 7 months prior to releasing it commercially.

However, tracking the performance using MTRocket, rather than connecting it to a more popular tracker does raise doubts on the credibility of the results reported.

The focus of the developers has been on consistency of performance as much as on profitability of a single trade. This is essential for a scalping strategy where the profits per trade may not be very high, but because of the sheer volume of good trades you will end up making a handsome return. In addition, the developers have used the EU session as the risk management strategy.

Backtests and Forward Tests

The backtests gave fairly accurate results – which show that the developers have done their homework well. There is no evidence of chart manipulation in the backtests. But, the true test of a forex robot is in the forward tests and there too, Pipjet performs reasonably well.

A live account on myfxbook.com which has been live since June 29, 2012 with a starting balance of $300 which uses the PipJet robot with default settings and a risk value of 0.1 with recovery mode disabled can be used to understand more about this forex robot. As on 19 March 2013, the account has a gain of 13.56% with a drawdown of 20.05%. The monthly average was 1.46%. One worrying trend is the fact that the average gain is only $1.19 while the average loss is $6.58. A total of 106 trades have been generated so far, and what is comforting is that there is a 90% win rate.

There has been only one month of absolute loss, but that has been quite high at 17.40%. Basically, this robot may not give you the full benefit of a trend, but does give consistent results. The one area where the developers can look at improving the strategy is when to exit a trade. A winning trade is exited much faster than a losing trade. In an attempt to show a higher winning trade ratio, the developers have sacrificed the huge gains associated with a trend riding strategy. On the other hand, a losing trade is not closed until the very liberally set stop loss is reached. In that sense, one can say that the PipJet forex robot does not effectively ride the trend.

Yet another test at Forexpeacearmy.com was stopped after 8.3 weeks as the PipJet EA failed to generate any trade for a month. Other users in various forex forums have also pointed out that the PipJEt EA is slow to identify a trade and thus may not be the best solution for quick gains in a short period of time.

PipJet’s Trading Results


Conclusion

The developers of the PipJet EA keep stressing the need to understand the underlying strategy of the forex robot and not focus only on performance results, before making a purchase decision. Now, that is one sound advice that they have given – the underlying strategy determines how effectively the robot would perform over the long term. Therefore you need to make full use of the refund period, and use that period to analyze how the robot works, before you decide to stick with it for the long term.

The PipJet has been designed for the Metatrader 4 platform thus offering it the flexibility of being compatible with most forex accounts across the world. The product comes in only one version, so there is no risk of missing out on advanced features. It is priced very competitively and at a license price of just US$97 it is very affordable as well.

All updates are free for life and there is a 100% money back guarantee as well during the refund period of 60 days. However, the USDCAD is not a popular currency pair with other forex robots, so there is no realistic benchmarking against competition that can be done for this forex robot. On the other hand, as the developers say, you can also look at it as less competition and therefore better profits without unnecessary market noises disturbing your trading strategy.


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