Ok, I bought Forex Funnel on Sunday, installed it in less than a minute and began testing it since yesterday. I used my regular demo account (NOT a mini or micro a/c) with an initial balance of just $3000 at a leverage of 1:200. I went against the guidelines stated in the FF manual and set the bot to trade with 0.1 lots initially instead of 0.01. So far, I’ve managed to make a total profit of +$525.95 on my regular Demo account starting with 0.1 lots. See screenshot of my demo account trades here —->

Note: the first trade for a profit of $200 was placed by yours truly, so I’m not considering that trade as part of FF’s performance

Please remember… I started my Forex Funnel test with 0.1 lots which is NOT recommended by the creators of this bot. Am tellin’ ya upfront, this bot will slowly but surely give you profits… but please be advised that it does so using a common gambling strategy. Things you should know about Forex Funnel:

1. It only trades the USD/JPY pair
2. Uses a combination of market orders and limit orders to pull in profits… if the current trade does not turn profitable, another order will be placed with double the lot size of the previous order.
3. You need to have a LARGE deposit or balance to use this bot… and I’ll explain why below

You see, the documentation that comes along with FF itself suggests that you start with 0.01 lots for every $2500 of equity (yeah, you read that right)  0.01 lots!!! That too, for a deposit of $2500! By the time, I make any substantial profits, two things could happen… a) I’ll be one year older  b) I could still lose my deposit in the meantime.

Here’s how FF works… it first analyses the current trend and places a market order with the minimum lot size (in my case, this was set to 0.1). Hopefully, the trade goes well… the good thing is that FF at least uses Stop Losses, unlike FAP. If the trade doesn’t pan out, FF analyzes the trend again and places another order for the prevailing trend with DOUBLE the lot size of the previous order.

For ex, if you take a look at the second & third order in my Statement sheet, you’ll notice that it placed a Sell order of 0.1 lots @ 106.06 (with Take Profit @ 105.71) followed by a Sell Limit order of 0.2 lots @ 106.31 (T/P @ 106.11). If the first trade goes well, then the Limit Order is cancelled… otherwise, the Limit Order will sooner or later be activated. If that order doesn’t work out either due to a not-so-predictable trend, the FF bot will again place ANOTHER trade with DOUBLE the lot size of the previous order. So, from 0.1 lots, it could progress to 0.2, 0.4, 0.8, 1.6, etc… This doubling strategy WILL give you profits PROVIDED you have a balance large enough to soften the blow of 5 to 7 losing trades in a row.

So far, in my case, FF has only placed trades upto 0.8 lots. I shudder to think what would happen if it ever reaches 3.2 or 6.4 lots. Let’s say FF has opened one losing trade after the other… If it opens consequtively doubled orders upto with 6.4 lots, the total number of lots used would be 0.1 + 0.2 + 0.4 + 0.8 + 1.6 + 3.2 + 6.4 = 12.7 lots in TOTAL. Believe me, with a starting balance of $3000, you could easily lose your deposit by 7th losing trade… OR …the bot would NOT be able to place another trade with double the lot size coz a majority of your equity could be locked up in the margin required for the 6 simultaneous live trades.

I hope you get my drift. Don’t get me wrong, this is a good bot… but you need to start with a VERY SMALL lot size and a VERY LARGE deposit/balance. And you need a WHOLE lotta patience (which i dont have) in order to rake in tidy profits. If my analysis of this bot seems incorrect to you in any way, I’d love to hear your side of it.. so feel free to comment here.