EA Review: Forex Profit Defender

Today I’m looking at an expert advisor built for the Meta Trader 4 platform, dedicated to the simple trading approach, Forex Profit Defender. The developers of the software claim that it’s built “specially for the ordinary Forex trader, but successfully used by many professional traders.” They want their system to appeal to multiple segments of the Forex trading community, that is quite apparent by their sales pitch.

The product is sold by Automated Forex Tools, which is a company that is run by a team of highly experienced Forex traders and developers. Their goal is to “create unique Forex robots of high-quality that will deliver in the future.” I can’t seem to find an address or location of their headquarters, but traders can get in touch with the support team via an email form on the contact page at the top of their website.

Forex Profit Defender Review

The developers of the Forex Profit Defender what the community to know that the main focus of this expert advisor is based on 3 trailing stop algorithms, simple trailing, bollinger bands trailing, and parabolic sar trailing. They believe that in using these algorithms that their EA can generate trading signals and execute them automatically with a very high level of accuracy. This software uses to indicators to provide the trades, and these can be traded manually as well. So, if you want to play a role in what trades are placed, and what trades are avoided, you can receive the signals and place the trades on your own.

The sales page extensively discusses the trailing stop methodology, as this is the main strategic element of the software. Generally, trailing stop is not the entire focus of the system, but it seems to be in this case. Obviously, if you are interested in trailing stop, then this is the type of expert advisor you should be analyzing further.

The only issue some traders have with trading systems like these, is that they don’t trust built-in indicators to provide the level of analysis required by a commercial Forex robot.

Breakdown

• Type: Forex Robot
• Price: $58
• Strategy: Trailing Stop
• Timeframe: M15, H1
• Pairs: Any

According to the sales page, the Forex Profit Defender can be used on any pair, and there are no restrictions whatsoever. Based on looking at some of the images provided, they are only showing us how the software works on the GBPUSD pair, on the M15 and H1 timeframe. Considering this, I’m not so sure how the software will perform on other pairs and time frames, because they aren’t highlighted or displayed on the website.

Trading Results

As always, the most important aspect of the review is the trading results. The Automated Forex Tools team provide us with one Myfxbook demo account where they’ve been trading the Forex Profit Defender signals manually with the Alpari RU brokerage.

This account has been running since the beginning of October, it is showing a gain of 20.65%. This makes for a daily gain of 0.31%, a monthly gain of 9.71% and a drawdown of 11.58%. These are all very modest numbers, and show a system that is growing steadily but slowly.

One of the main issues highlighted by some of my readers, is the risk to reward ratio with the average loss being just over 100 pips, and the average win being just under 9 pips. This makes for approximately an 11-1 risk to reward ratio. Thus, if you lose one trade, you will have to win 11 straight trades in order to make up for the size of that loss. On the bright side, there have been very few losses.

It is also important to recognize that the size of the trades are quite small, with many of the wins coming in the region of around 5 pips. In order to succeed with trades this small, traders will have to ensure that they trade with very low spread brokerages. I wouldn’t mind doing a little more analysis with FX Blue as well.

Lastly, these are manual trades being taken, so the developers play a large role in determining what trades they take, and what trades they avoid.

Conclusion

I appreciate most elements of the presentation, and believe that the Automated Forex Tools group is doing everything they can to make Forex Profit Defender a winner. That being said, I believe it is too early to really know if this is a viable trading opportunity. The results provided are currently showing us a very small sample size, and they aren’t truly indicative of future results because the developers are able to pick and choose the trades they want to provide.

Please let me know what you think about this expert advisor, by leaving your comments and remarks below this review now.