Recently I purchased and installed a new EA (Expert Advisor) to work on my MetaTrader 4 forex platform, called Pips Leader. Before I did so, I did a search [...]]]> Pips Leader – Brilliant Forex EA – But ONLY if You Use it Correctly

***UPDATE*** See real trading examples (screenshots) at bottom of this screen ***

Recently I purchased and installed a new EA (Expert Advisor) to work on my MetaTrader 4 forex platform, called Pips Leader. Before I did so, I did a search in Google to see if there were any “real” reviews of this software.

I glanced past a number of so-called “reviews” of the software, which from my experience are more often than not, simply hidden sales pitches. I was looking for a forex trading forum, because that’s where you often get the most honest opinions – and from people who are actually using it.

Unfortunately, at the time of writing this, there isn’t much out there. I read one forum post from someone who called it “a dangerous piece of software” and claimed it cleaned out his $500 account. Well, I was curious and, relying on the unconditional 60 day money back guarantee, decided to purchase and give it a try.

I started with a demo account and ran it for a few days, just to see what happened. Let me say up front that I believe it is excellent software, but ONLY if you use it correctly – otherwise you can lose your entire bank. The rules are not complicated, but they must be followed, believe me.

My first mistake in testing this EA, was to try and run it on too many currencies at one time. This is because Pips Leader uses a “basket trading” strategy. The beauty of this system is that it doesn’t rely on price direction. It buys a basket of positions – for example, if it believes the price will rise, it may purchase say, 7 “buy” positions. If the price does rise, it simply takes a nice profit. However, if the price begins to fall instead, it will then take a number (or basket) of new “sell” (opposite) positions in order to “hedge” the original positions from loss. Once a disparity between the “buy” and “sell” positions occurs, which is favourable, it will then close all positions and take a profit. It does all the calculations for you.

The thing is however, in order to achieve the above strategy, when the price goes against expectations in the short term, the program may, at some stage, need to use more of your capital in order to “do it’s thing”. This is a VERY IMPORTANT reason why you should ONLY use it on one currency pair at a time – you don’t want to be greedy and overuse your resources. Running too many positions at once, on wrong currency pairs and trading lots of 0.10 it could easily wipe out a $500 trading bank. If you only have say, $500 to start with, then you would want to adjust the trading lots (you can do this) to about 0.01 until you build your capital to $1,000 then bring it up to 0.03. Once you reach $2,500 – $3,000 then you can safely start with 0.10 lots.

I have backtested Pips Leader on a few currency pairs and have found that the one it works best on, is the EURUSD for a one hour chart. Shorter timeframes tend to be more volatile and can result in losses. The EURUSD has a nice tight spread, which really helps. The Pips Leader will place one trade per timeframe you have your chart set for. In other words, if you’re running it on a 15 minute chart, it will place one trade every 15 minutes. This is the main reason why the one hour chart produces optimal results with minimal risk.

The only risk associated with this robot, is a sudden volatility spike in the currency price action. For example, if during the past 7 hours, it has placed 7 “sell” trades in anticipation of a fall in price, but instead the currency pair makes a sudden strong move north inside one hour, you’re exposed to the tune of 0.70 lots before the robot will have a chance to place any hedging “buy” positions – and even then will only do so one per hour. This is why, trading lots of 0.10, you need sufficient capital to absorb the temporary loss. It is also the reason why you don’t want to trade shorter timeframes.

I started running the software “live” on a bank of $2,500 last week and as of now, have achieved over $1,000 profit. If you backtest, you’ll observe that it doesn’t do this all the time but over a period of 12 months testing from January to December 2008, trading lots of 0.10 it made $21,492.61 profit. All this, with absolutely no input of your own – in other words, a passive income stream.

The beauty of this forex robot is that, with multiple brokerage accounts of $5,000 capital (the safest), you can “rinse and repeat” the process. Each one will make you around $20k per year on average. A good financial plan would be to build up your first account to $5,000 then take $1,000 of it and open another forex account with a new broker and begin again – with 0.03 lots per trade of course. Build this one to $5,000 then do it all again.

Well worth the US$77 price tag of the software, I think.

If you’d like to try the Pips Leader expert advisor for forex MetaTrader 4 platform, visit

http://www.pipsleader.com

Pips Leader

See How the Pips Leader Buys “Baskets” of Concurrent Positions?

S = “sell position”     B = “buy position”

It will keep doing this until a profit is realized

See below how the Pips Leader eventually closed all positions? This basket was about $500 in drawdown at one stage, but eventually closed all for a $100 profit. Most trades are a shorter timeframe and make more than this (see earlier moves in above chart), but this serves to illustrate how the program can make a profit, even when the price moves in the wrong direction.  Get The Pips Leader Here

We have a further example, moving on, in the chart below – of Pips Leader’s next trade. Notice how it’s closing out a number of “buy” positions? Some of these would be losing trades, but the program calculates when the winners are more profitable than the losers. This last position was about $900 in drawdown at one stage (0.10 lots per trade) but eventually closed for a profit. If the price had’ve kept dropping, it would’ve opened a number of “sell” positions to hedge, but on the EURUSD hourly chart, short term price fluctuations usually involve retracements, which we take advantage of.

Over one week, this software has made a total profit of $637.43. It often does much better than that. Sometimes, I have woken up in the morning to find it has made me $800 overnight!   Get The Pips Leader Here