Range Trading Robot Logo
Price: $99

Range Trading Robot

Added on May 8, 2012 02:46 AM
(3 / 5)
Trading style: range trading
Currency pairs: AUDCAD
Time frame: M30
Money-back guarantee: 30-day
NFA compliance: No

The Range Trading Robot is a fairly recent entry into the market of fully automatic EAs. The website does not give any indication of who the developers of this robot are. Here is a detailed review of the product, so that you can make an informed choice before you invest your money in it.

 

Basics - The Key Features and the Strategy Behind It

The Range Trading Robot trades the AUD/CAD currency pair and follows a range trading strategy as the name suggests. This involves buying as the price reaches closer to support levels and selling as the price touches close to higher end resistance levels. Thus, it follows the age old principle of buy low and sell high. The robot also optimizes range trading by trying to create trades in the direction of a breakdown (in a falling market) or a breakout (in a rising market).

Range trading is a high risk category, if used on high risk currency pairs. However, the range trading robot focuses on the AUD/CAD currency pair – both of which are low risk currencies. The developers claim them to be low risk currencies based on the fact that both currencies represent stable governments and good economies. By low risk, the developers also mean that this currency pair will always remain range bound. In such a scenario a range bound trading logic can reap amazing benefits. For a range trading EA, if the currency pair does not remain within a range, then it can prove to be a disaster and result in heavy losses and draw downs.

What is interesting about this EA is that it is not a signal type service and is fully automatic – which means you can set it and forget it – well, almost! The EA would identify the trades as well as execute it on your behalf. All you need to do is monitor the trades generated and tweak the settings to suit your style. Thus, human errors inherent in manual trading are completely eliminated as the EA will analyze the market volatility and identify the best entry and exit strategies. The downside is that even a hardware or software failure can cause you huge losses. In fact, unless you have a robust Internet connection you should never even think of using a fully automated EA such as the range trading robot for your forex trading account at all.

 

So, who is it right for? The developers claim that its ease of use makes it an ideal choice for beginners while the experts can benefit from adding this EA into their existing portfolio to have a winning streak.

 

The Range Trading Robot has been tested and optimized to manage risks so as to improve the success ratio for traders. The range trading robot EA is highly customizable to each person’s trading strategy. Based on the risk and reward targets of each user, the profit and risk parameters can be set by the users of this EA. If you decide to purchase this EA, use the demo period to learn about how the various changes in settings are likely to affect how the EA behaves in different market conditions. Even if you are a risk taking trader, it is best to start off with a low leverage till you are familiar with the EA and the way it works. That way, you would be protecting your initial deposit against the vagaries of the currency market.

 

The Range Trading Robot has been programmed to adapt itself to market conditions for maximizing profits with the help of good volatility and news filters as well as a robust money management system. It also has a built in stop loss mechanism to prevent any huge losses. The back tests and forward tests discussed below would give further insights into this EA and its underlying strategy.

 

Back tests

The range trading robot website does not have any information on back tests that they have performed to show the robustness of the underlying strategy and the money management rules that the EA follows. In fact, the whole website looks more like a loud sales pitch than a solid performance oriented backing of their product. This itself raises doubts on the credibility of the range trading robot EA. This combined with the fact that website does not contain any information about the developers makes you feel even more suspicious. If you are one of those forex traders who do not believe in the power of back tests and the information that it can provide, then you can solely rely on the forward test results and base your judgment on that alone. 

Forward Tests

A live account at myfxbook.com shows a gain of 103.17%. However, before you feel happy about this, please note that the account also has a very high drawdown of 64.54%. The account has a leverage setting of 1:200 and was started on 12 October 2011 with an initial deposit of $1000. The account has had a total deposit of $1355 and the same amount has been withdrawn as well. In such a case, one could think of any additional profits as pure gains, and need not worry about even the account going bust. The only concern is that the developers claim that since both currencies are fairly stable, the Range Trading Robot is a low risk EA. The forward test results and the huge draw downs clearly show a different picture altogether. The success story that the developers themselves claim is another account verified by myfxbook.com, which again shows a gain of 266.51% but an equally high drawdown of 57.09%. One thing is clear from this – this EA is not for the faint hearted. If you are able to see more than half your deposit being washed away and still continue with the EA, then it does give you good returns. Observing the charts on myfxbook.com and analyzing them is a good way to learn in-depth about how the range trading robot has taken its trading decisions in various scenarios.

Forex Monitor Forward Test


Conclusion

Just as in the case of any other EA, even this one should be thoroughly tested before you decide to use it. Understand how it works fully before you start running it live!

The licensing model of this EA is fairly liberal and it is priced competitively too at just $99. However, the refund policy is fairly strict. They expect you to show that you have in fact suffered losses by using it with its default setting, before you can claim a refund. Most EAs may not show a loss, but you may not want to continue with it because it may wipe away your account because of the draw down. In this case, that possibility is not there at all.

The refund period of 30 days should never be used to generate live trades – use it for testing the product and getting to know it well. If you are convinced about the product, then go ahead and start trading. If not, go ahead and request that refund. The only hitch is that you need to show the proof of having used the range trading robot for at least 20 days before actually requesting the refund.


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