Well my Forex Funnel results are in! And it totally confirms all that I’ve said about Forex Funnel before.

I restarted my Forex Funnel test on Oct 16th on a Mini demo account starting with a balance of $3000 and 0.1 lots per order (since it’s a Mini account, the effective lot size is 0.01). Ever since Oct 16th, Forex Funnel has pulled in a small profit of  +$57.93. I feel like it’s a waste of time coz even if i test FF for an entire month, my profit will only be around $230 – $240. Does anyone think this is worth it? Right now, the closed trades are sitting at  +127.07 and there are two current live trades that show  -60.97 & -8.17.

Like I’ve stated before, if you follow the instructions wherein you trade only 0.01 lot sizes for every $2500, then your balance may remain safe but the returns will be quite low. Please read my previous posts regarding FF’s doubling strategy. In my case, I noticed that Forex Funnel had set up limit orders utilizing upto 6.4 lots. With a starting lot of 0.1, this means that Forex Funnel had doubled the lot size six times in a row! Let’s do a little math…

0.1 -> doubled = 0.2 -> doubled = 0.4 -> doubled = 0.8 -> doubled = 1.6 -> doubled = 3.2 -> doubled = 6.4

You notice that FF has doubled the lot size in 6 steps. So, the size of the largest order can be expressed with this formula:

Lot Size of the Largest Order = (Starting lot size) * 2 ^ steps

In this case, Largest lot size = 0.1 * 2^6 = 0.1 * 64 = 6.4 lots

The last order in a series is usually placed as a limit order and most often, it gets cancelled. But even though, it gets cancelled, the margin is still required until it cancellation. So, let’s consider this. For a mini account with 1:200 leverage, the margin required per 1 lot is $50… for 1:400 leverage, it would be $25. Let’s take 1:200. This means that for FF to reach the 6 step, margins would be required for each of the orders placed. So, let’s calculate the total margin required:

Total margin = (0.1 * $50) + (0.2 * $50) + (0.4 * $50) + (0.8 * $50) + (1.6 * $50) + (3.2 * $50) + (6.4 * 50)

= $5 + $10 + $20 + $40 + $80 + $160 + $320

= $635

Now that’s $635 just for the margin alone! What about the equity required to absorb the impacts of all those high and low peaks?! With a starting balance of $3000, you’re not gonna last long!! If you have a large balance, then yes, you will make profits with FF, but very gradually.

So, once again, I repeat myself: DO NOT TRADE FOREX FUNNEL ON LOW BALANCES !!!!

‘Nuff said!