Estimated reading time: 6 minutes
As the battle for competing Expert Advisors intensifies in the market, one would expect to see more reliable and transparent developers pitching their products on a daily basis.
However, that’s not the case because many bogus expert advisors are being channeled out there consistently.
The best ones are of course limited, and hard to find. It’s the reason we decided to review FX Secret EA because it claims to offer a unique combination of Forex trading tools that will put you on the edge while others struggle.
The website where these expert advisors are being hosted claim that they are a private trader’s club whose expert advisors have performed astonishingly for the last 6 years.
The website also claims that their products have a track record of success, and that all their EAs are fully functional and accountable, hence the results as seen on the performance page of this website.
We want to actually find out if these claims are true. This is why this FX Secret EA review is quite important to read.
FX Secret is a combination of trading systems which the developer says will give you a win rate of 90% every month.
It is not clear how many systems are contained within the package. So for the sake of this review, we will take the two systems which we already know exist in this package. These are called FX Stabilizer and the FX Charger.
You can see from the above review that FX Stabilizer is already a failing system. Yet the developer says that it’s one of the systems that make up the entire arsenal of the FX Secret EA package.
Personally, I would be hesitant to get this system especially after seeing that the product contains a dangerous system within it.
Secondly, we appreciate the fact that this website was mindful in providing some information about the Expert advisors which they sell.
The problem is that the strategies used in these robots are not revealed. They claim that it’s a secret, hence their formula has to remain discrete.
So we actually have to do a thorough investigation on our own in order to figure it out — since the manufacturer is not willing to corporate.
My conclusions are based on the past performance results which the website displays for visitors to see.
First and foremost, one of the systems being used here is a night scalper. I do believe that most of this trading is initiated by the so-called FX Stabilizer EA system that is within the entire FX Secret EA package.
This system trades AUD/USD pair. Even though trading is not initiated in the most non-liquid of times, it does not mean that the risks of night scalping are entirely eliminated.
The problem with night scalpers is that they are very broker-dependent. What I mean here is that your success depends with the conditions which the broker gives you. If the system opens trade positions with high slippage, you will get very ugly results. That’s one disadvantage which you need to be aware of before you buy the so-called FX Secret EA system.
Now, let’s focus on the equity curve of this expert advisor. The curve rises steeply, and could suggest that the EA is operating with grid-based trading.
What this means is that FX Secret EA is actually increasing your trade volume each time it closes a trade in losses. However, I can also see that the expert advisor is not following a strict Martingale policy. All in all, this kind of trading has been proven to be a little bit dangerous.
According to the website, all their systems have been running on live accounts since testing begun.
It’s therefore not a surprise to see that the actions of FX Secret EA were recorded starting February 2016.
This is quite a long time of testing, and could suggest that the EA is somehow reliable.
This account is hosted by FXOpen broker and the results are being monitored by MYfxbook.
Let’s take a closer look at the equity curve which shows that FX Secret EA has been performing well for the stated number of months.
First thing to realize is that the uptrend is relatively smooth with the exception of sudden deeps which indicate losses occasionally.
These losses are very costly in the end because those deeps do affect a large part of your account.
If we want to understand the equity curve well, let’s take a second curve which shows us the maximum draw down that this EA has witnessed.
From the screenshot above, you can see that the maximum draw down that the FX Secret EA has witnessed is slightly above 40%.
Although the down-spikes are occasional and somehow easy to recover from, the 40% draw down is a big percentage. In most cases, it would only take one or two deeps for your account to significantly reduce in value.
With that message being communicated clearly, it is apparent that the risks that come with FX Secret EA are real. In fact, we have seen similar grid-based trading systems doing poorer than this. Nevertheless, this does not change the fact that FX Secret EA can still have a high draw down.
Throughout my investigations, I came to learn that this system had an average pip per trade value of -1.3. What does this information mean to the average trader?
It means that this expert advisor wins bigger trades as opposed to smaller positions. That’s why it makes a profit despite losses here and there.
Again, blame it on the grid-based strategy of this program. Most grid-based trading EAs end up succumbing to this. Am actually surprised that FX Secret EA is still soldering on.
Also, you should know that a good system offers at least 3 pips per trade value, although anything above that number is always an indication that the system is super effective.
Finally, if that figure is lower, it will mean that the expert advisor in question is more prone to deviations when spreads are unfavorable.
FX Secret EA is moderately priced for the business plan. However, the other plans are a bit pricey. I am not sure if those plans deserve such a high price tag though.
FX Secret EA does have a number of systems within it. This would give the impression that it is powerful and more useful than other Forex systems.
However, you ought to know that this does not necessarily mean that the Expert advisor is profitable in the long run. It could be a marketing stunt to win more buyers in the process.
According to my evaluation, I can see that this system has some elements of grid-trading and night scalping. Thankfully, you already know the shortcomings of those strategies. It may be the reason why the developer refused to reveal these details to us in the first place.
Technically speaking, this combination of trading strategies is very dangerous. You could potentially blow your entire account if you traded with the FX Secret EA.
But on the same note, I am recommending other safer Forex trading products which will give you an edge in the industry. Check out the aforementioned products and thank me later.
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