- Forward test results in real accounts for over 9 years
- Outstanding performance in real accounts
- The risk factor is that the recovery trade with a large lot size fails
GPS Forex Robot（EA）Basic Information
| Price | $149 |
| Currency Pair | EURUSD,USDCHF, EURGBP,GBPUSD |
| Time Frame | Any time frame is possible. The time bar of the displayed chart is not related to trading signals |
| Trading Method | Scalping ~ DayTrade |
| Terminal | MT4 |
GPS Forex Robot is an automated trading system (EA) that has been forward-tested since 2012 and has been successful for a long time.
It was invented by Mark Larsen, who has been reviewing EAs for a long time, and developed by programmers Antony and Ronald.
There is some kind of exaggerated advertisement on the sales page. But the results so far have been great.
There is no doubt that it is an EA with a proven track record.
On the other hand, you need to be aware of the big risks that this EA has.
Profitability / Drawdown
First of all, it is commendable that it has endured forward testing for over nine years since May 2012. The balance has increased six times in about 10 years.
The maximum drawdown is relatively high at about 51%, and the profit margin is not very high. However, there is no other EA that has maintained a rising profit curve for such a long period of time.
Trading Method Analysis-Entry
GPS Forex Robot normally makes profit only by Buy entries.
You can see from the MT4 transaction history chart below that it is almost Buy entries.
■EURUSD 1H White＝BUY Red＝SELL
GPS Forex Robot can be categorized as a Scalping EA for the Asian session.
Make Buy entries only during the following fixed times. Conversely, It will not enter other than the following time zones.
1:00 am in daylight saving time (GMT + 3),
There are many scalping EAs that only enter in the trend direction.
On the other hand, GPS Forex Robot will enter regardless of the trend direction.
Asian sessions tend to be small range market. Therefore, most of the scalping EA in the Asian session make short-term contrarian entries.
On the other hand, GPS Forex Robot is neither Market Follower nor contrarian.
Trading Method Analysis-Frequency
The average entry frequency is about once every 5 days. Transaction frequency is low.
It can be considered that the entry will be made only in high-probability situations.
Trading Method Analysis-Take Profit
Trailing stop is used for Take Profit.
Trailing stop is a method of taking profit with the return of pips specified from the latest high or low price.
In the forward test, the trailing stop pips distance is 6 pips.
As a result of activating trailing stop, take profit pips are often around 2-4 pips. So GPS Forex Robot is a scalping EA.
Stop Loss and Recovery Trade
Very large stop loss and recovery trade. This is the biggest risk of GPS FOREX ROBOT.
Stop loss is set at 90 pips.
Stop loss is set to 90pips. That’s about 30 times larger than Take Profit.
With this alone, it is an EA that blows off the accumulated profits with one losing trade.
However, the GPS Forex Robot will recover the loss through a recovery trade after 90pips stop loss.
Specifically, after loss-cutting the Buy position at -90pips, It will recover the loss with a sell entry of about 7 times the lot size.
In the MT4 transaction history chart below, you can see that making Sell entry after the loss cut of the Buy position.
■EURUSD 30M White＝BUY Red＝SELL
The Sell entry has lot size 7 times larger than the first Buy entry. Therefore, if the price drops 12.8 pips from the Sell entry, it can recover the loss of 90 pips
(90 pips / 7 = 12.8).
Actually, when it make Sell entry, position is closed at about 12 to 13 pips and the loss is recovered.
This EA has made more than 500 trades since the beginning of forward testing in 2012, and all sell recovery trades have been successful.
However, there is no guarantee that all sell recovery trades will continue to be successful.
If the price reverses and continues to rise after a sell entry of 7x lot size, the account will be insolvent.
Entry with a lot size 7 times the normal lot size involves a very high risk.
It is unclear whether further recovery measures will be taken or whether the positions will be held until the account is insolvent.
Users must also anticipate the consequences if a recovery trade fails.
It is also possible to turn off recovery trading by setting parameters. However, keep in mind that without recovery trades, you will have to accumulate dozens of winning trades to recover your losses, which will reduce your performance.
Back Test Result
| Start Date | 2007-10-09 | 2020-01-05 |
| 146months | ||
| Initial Balance | 10,000 | |
| Lot Size | 【Fixed】1.0 lot | |
| Final Balance | 110,951 | |
| Total profit | 100,951 | |
| Total rate of return | 1109.5% | |
| Monthly rate of return (compound) | 1.7% | |
| Monthly rate of return (single) | 6.9% | |
| Relative max drawdown | 20.4% | |
| Maximal drawdown | 5,648 | Initial balance ratio:56.5％ |
| Profit factor | 284.0% | |
| Profit trades (% of total) | 88.7% | |
| Total trades | 995 | |
The GPS Forex Robot has been back tested for about 10 years.
There is no big difference compared to the result of the forward test and the transaction.
The relative maximum drawdown (drawdown relative to the current balance) is kept low at 20%.
On the other hand, the drawdown against the initial balance is about 56%.
If this kind of drawdown occurred immediately after the start of operation and the balance was low, the account would have been in a slightly dangerous state. So it may be better to set the lot size to slightly smaller value.
Parameter Settings
The parameter settings of GPS Forex Robot are explained below.
The setting of lot size is an important item. It is recommended that you enter the lot size yourself without using the automatic lot size adjustment function.
The recommended setting is 0.01 lots per $ 100 (ie 0.02 lots for a balance of $ 200, 0.1 lots for a balance of $ 1000). However, it is better to set the lot a little.
As explained, backtest have track record of 56% drawdown against the initial balance with 1.0 lot for balance of $ 10,000.
Therefore, the risk is lower if the lot size ratio is less than half.
(0.01 lot for every $ 200)
■Authentication settings:
| Email address used to purchase GPS Forex Robot | |||
| CBReceipt | After completing the EA purchase procedure, enter the CBReceipt number in the email sent from GPS Forex Robot Team | ||
■Trading Days:
| AutoAnalysis | When set to “true”, the entry timing is automatically determined from various indicators. If set to “false”, the entry will always be made on the day set in “Trade Monday-Friday” below. Of course, the recommended setting is “true”. On the other hand, if you set it to “false”, it will be a very simple EA that will enter at 0:00 or 1:00 am on a fixed day of the week. |
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| TradeMonday～Friday | If you set it to false in the above “Auto Analysis”, it will always be trading on the days set in this item. | ||
■General Options:
| AutoGMTOffset | Setting to automatically get the MT4 server time information. Recommended setting is “true” | ||
| GMTOffset | If the above “AutoGMT Offset” is not working properly for some reason, manually enter the difference from GMT + -0 in this item. | ||
| StealthMode | Settings that prevent brokers from knowing the set values for Take Profit and Stop Loss. This is a countermeasure because a malicious broker may commit fraud such as stop loss hunting. Recommended setting is “true” |
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| Slippage | Allowable slippage value. There is no problem with the default setting of “2”. | ||
| MagicNumber | Sequential number automatically set for each trade. There is no problem with the default settings. | ||
■Recovery Trade:
| UseRevAfterSL | Whether to make a recovery sell entry after the first buy entry reaches the stop loss. Unless set to “true”, loss recovery will take a very long time. |
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| RevAfterSL_Multiplier | How many times the size of the recovery Sell entry should be compared to last Buy entry? It is 7 (7 times) in the forward test. | ||
| MagicNumber | Sequential number automatically set for each trade. There is no problem with the default settings. | ||
■Trailing Stop:
| UseTrailingStop | Whether to use a trailing stop for Take Profit. It is set to “true” in the forward test. | ||
| TrailingDistance | Trailing stop pips. The default is 6 (pips), and the forward test is 6pips. | ||
| TrailingStep | Unit of calculation for trailing stop. There is no problem with the default 1 (pips). | ||
■Other settings:
| ExpertComment | A comment that enters the transaction history of MT4. There is no problem with the default settings. | ||
| ColorBuy | Color indicating the position of the Buy entry displayed on the MT4 chart. There is no problem with the default settings. |
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| ColorSell | Color that indicates the position of the Sell entry displayed on the MT4 chart. There is no problem with the default settings. |
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| SendEmail | Send a notification to your email when a order is executed. | ||
| SoundAlert | Sound notification when a order is executed. | ||
| WriteLog | There is no problem with the default settings. | ||
| WriteDebugLog | There is no problem with the default settings. | ||
Summary of GPS Forex Robot
Although the rate of return is not high, the length of the forward test results in real accounts is outstanding.
When you see the beautiful profit curve, I understand that you want to use this EA.
However, you should also understand the big dangers of this EA.
If the buy entry fails, a recovery trade with 7x lot size will be executed.
On the sales page of GPS Forex Robot, it is stated that “Martingale and grid trading methods are not adopted.”
Certainly, this EA does not have multiple positions at the same time.
However, in reality, the risk of this EA is equivalent to that of a martingale EA.
(Reference article: Martingale EA risks and benefits)
All recovery trades have been successful in over 10 years of backtesting and over 10 years of forward testing.
However, recovery trading is a dangerous technique.
If the recovery trade fails, your account balance will be zero.
Forward Test Environment and Recommended Broker
The forward test environment of GPS Forex Robot is “FX Choice real account”.
The trading environment differs between demo and real.
Even though the price movements look the same, there are differences in the execution such as slippage. So even if the same EA, the results may be different between demo and real.
GPS Forex Robot publishes its track record with real accounts, so you can make profits even with real accounts.
Please note, however, that the time zone for GPS Forex Robot entry (0:00 at GMT + 2, 1:00 at GMT + 3) is low liquidity market (overall trading is not active).
Spreads are likely to be wide and slippage is likely to occur.
Therefore, the result may change depending on the broker.
The manual recommends the same FX Choice as the forward test.
However, it can be used with brokers other than FXChoice.
FXChoice has relatively wide spreads and no deposit bonus.
Some brokers offer 100% deposit bonuses that double your balance.
GPS Forex Robot makes large lot recovery trade. so it is advantageous to have as many account balance as possible and it will operate stably. On the contrary, if the balance is small, the risk of large loss is high.
Therefore, the deposit bonus of Forex brokers is definitely good service to use.
Especially, the 100% bonus of “XM (XM Trading) Standard Account“ will cover the floating loss even if the equity balance reaches 0. (Other brokers only have the advantage of be able to open large position, and the bonus disappears when the equity balance reaches 0.)
For example, if you deposit $ 500, you can trade twice as much as $ 1000, and the spread of XM is narrower than FXChoice. This is an advantageous operating environment for this EA.
(However, if there are many small losses even for buying entries that have high probability of winning trades despite having operated according to the recommended settings on XM, it is better to consider switching to FXChoice.)
In addition to the double deposit bonus, you can also get an account opening $30 bonus at XM.
* To receive a 100% deposit bonus + $30 account opening bonus, select “Standard Account (1lot = 100,000)”. Bonus cannot be received with Zero account.
