FOREXSTEAM BOT REVIEW
Are the claims made in on the website valid and is this a profitable bot ? I purchased ( with my own money) this bot and put it independently to the test to see if the claims they are making hold up to scrutiny.
What is an MT4 Forex Bot
I have written a guide to MT4 bots for beginners here that goes into much more depth about what an MT4 Forex Bot is ( or EA, Expert Advisor).
A forex robot or an Expert Advisor is a piece of computer software that automatically makes trading decisions on behalf of the trader. Forex robots are designed with inbuilt trading rules, which enable them to enter and exit trades without requiring the physical presence of a trader.
The main piece of software that forex traders who trade from home use is called MT4 and although it looks a bit dated and clunky its been used for years and is well trusted.
MT4 has lots of useful features, but the one of most useful here is the ability to download custom made programs that can trade automatically for you. These custom made programs are known as ‘Expert Advisors’ or EAs and also known as ‘bots’. They are rather like apps you download for your smartphone.
ForexSteam is an Expert Advisor/ Bot built by a team who claim to have 25 years experience ( I couldn’t verify this).
Their Bot is built for the Metatrader 4 platform only ( the MT4 software I mentioned) and they say they have an aim to provide a low risk system that provides long and short term gains with an easy to install and up and running bot.
Free Trail or Demo version
Ease of Purchase
The Bot was easy to purchase from their website and I quickly got an email confirmation on the purchase and what to do next . You get a unique link that you can click on that will take you to create your membership account on their site and then you can access the members area to access all the software and materials.
I have already installed MT4 on my own computer to let this run but if you haven’t used MT4 ( Metatrader 4) before you can download from here.
ForexSteam Download and Installation
Download was easy but remember to adjust a few of the settings if you dont see any trades after 1 or 2 days.
If your account size is smaller than 1000 you may have to increase the Risk Percent with money management and set your own lot size. I also recommend you set your chart to a M30 timeframe too.
Set News Filter to FALSE.
You have to allow autotrading on your MT4 platform which is the giant autotrading button at the top of the menu on MT4.
Your computer needs to be running all the time for this bot to work so I strongly suggest using a VPN to run this bot.
A VPN is having access to a computer via a secure password that exists elsewhere by a hosting company with lots of failsafes for power or crashing. Better still you can run multiple MT4 bots off of this server too. This means you can look at and check this special computer remotely using your phone or computer at any time, but you don’t have to worry about keeping your computer on or a power cut.
These often cost less than £20 per month. I recommend the guys at 4xSolutions here .
How Many Licenses do you get for Forexsteam?
The account comes with 4 licenses so you can have this bot running on a demo account and a live account as well as two other places if you wish.
What Currency Pairs does Forexsteam trade?
This bot trades the EUR/USD forex currency pair which is the exchange rate price between the US Dollar and the Euro. This is the largest trading currency pair in the Forex Market and makes up about a quarter of all Forex Transactions. Its nickname with traders is ‘Fibre’.
Claimed Win Rate
For 2017 the bot results claimed on the website show a 92% win rate across the year. This increased to a 93% win rate in 2018. The bot has been trading according to their results for 4 years. There are a total of 1162 trades now showing in the results section.
Risk Reward Ratio
Looking at their claimed results it looks like the bot typically aims to grab a quick 10 pips profit. When it does lose it tends to lose either 20 or 30 pips. Generally speaking I am seeing a risk reward ratio of 2 to1. This means you are risking twice as much money as you are willing to gain in each transaction.
What Timeframe does ForexSteam Trade?
The Bot trades on the M30 ( 30 minute) timeframe.
The claimed profits show an account that grows very quickly over time. My only observation here is that the performance graph seems a little bit too smooth to my eye and I would expect a bot to have a slightly bumpier ride.
How Often does ForexSteam trade ?
Based on the claims and the information I’ve gathered you should expect a trade roughly once per day on average. Some days it might trade 3 times and some days not at all. Remember that the Forex Market is closed for trading over the weekends.
Forexsteam advanced features
This bot avoids trading just before or during important forex news events and announcements when the market can move quickly in an unpredictable way.
The Expert Advisor also has a custom area you can input any days you don’t want it to trade, for example during an election or similar non standard event. The bot automatically doesn’t trade during holidays
The bot also seems to have both a trailing stop loss and pip retrace function. A trailing stop loss means that once the trade has moved by a certain amount into profit the bot automatically places a new stop loss at point of entry so you cant lose any money. My only observation on this is I don’t see any results on their site for a breakeven 0.0 trade so this makes me wonder if this works.
Beware Bad Brokers
Its not just the logos or where they are based. All brokers ARE NOT the same. Be wary of brokers that are betting against you and instead ask any broker if they are placing your trade actually ‘in the market’. A broker betting against you will want you to lose. They will do anything to make sure you lose in a sneaky way.
A broker that puts your trade in the real market actually doesn’t mind if you win or lose. In fact if you think about it the more you win the bigger your account gets and the more your trade size increases and the more they make so in many ways they are actually cheering you along.
Another key component to your Forex robot is the Forex dealer, an IB that you use for your trading. Choosing the appropriate dealer and taking advantage of the various perks and services offered by Forex IB’s can be the difference between success and failure with your Forex robot in some cases.
A great way to work with reputable broker while experiencing favorable trading conditions is to trade your robot with a Forex IB. Among other perks, they can reduce your transaction costs by providing you with cash bonuses for every Forex trade you make. For example, if your robot trades 30 lots per month and you are receiving a rebate of $5/lot, you will get $150 for free every month. This adds up to over $1500/yr just for trading. This will both enhance your trading success and help pay for various Forex robots and products that you may want to purchase in the future.
I work with Infinox in the UK as they make it clear that they place your trade in the market and don’t bet against you .
MY Independent Analysis
After buying the bot I set this up on an account on my own and let it start trading. You will be able to see the ‘forward testing’ of this bot from this site now as it trades but I also used the Metatrader 4 backtesting facility to see how this bot would have done in the last year as well.
The live updated forward performance of this bot and a breakdown of its individual systems is shown here.
What you will notice is that although the bot makes steady small gains generally, it also loses about 11% of the entire account when it loses. Recently this has happened three times in a row which has left this account 6% loss overall as of Aug 2019.
Ill return to comment again on the performance in a few months time.
Backtesting Results for ForexSteam EA
My backtesting did not match their results. The company explain on their website that this may be due to the fact that they ‘service’ and update the bot regularly to keep it relevant to current market conditions. If this feels suspicious I would say that it actually isn’t. Whilst its annoying that we cant get an instant confirmation of the results claimed i get the reassurance that they method itself is tweaked regularly based on market conditions. The bots I have created operate on a very similar premise.
Its just too early to tell. Ill update once I’ve seen it trade for a few months.
Its early days here but for now so I will return here in about a month to post some provisional live results here. Make sure you subscribe so you can get an email update.
Is it worth the £99 price tag? Time will tell.