FOREX GUMP EA – Review＆Examination
FOREX GUMP EA Basic Information
FOREX GUMP EA is a grit trade EA that runs on 9 currency pairs.
1 account version
3 account version
AUDUSD, EURCHF, EURGBP, EURJPY, EURUSD, GBPUSD, USDCAD, USDCHF, USDJPY
Grid / scalping
1: 100 or more
Money Back Guarantee
There is a money back guarantee. However, this is limited to cases where a loss has occurred as a result of operating for 20 days or more and the vendor has confirmed that the refund is valid.
Highly profitable rates can be expected due to aggressive entry with multi-currency pairs.
|1 account version||3 account version|
|Currency Pair||AUDUSD, EURCHF, EURGBP, EURJPY, EURUSD, GBPUSD, USDCAD, USDCHF, USDJPY|
|Trading Method||Grid / scalping|
|Leverage||1: 100 or more|
|Money Back Guarantee||There is a money back guarantee. However, this is limited to cases where a loss has occurred as a result of operating for 20 days or more and the vendor has confirmed that the refund is valid.|
The results of the forward test have high impact and high profitability.
On the other hand, it is necessary to understand that EA has relatively large risk
Profitability / Drawdown
Broker：Unknown (real account)
|(Information as of 2020-05-09)||Date||Balance|
|Lot Size||(Adjust according to balance)|
|Total rate of return||+1769.9%|
|Monthly rate of return (compound)||+14.2%|
|Monthly rate of return (single)||–|
|Profit trades (% of total)||74.3%|
Withstanding the forward test for about two years, the average monthly profit rate (compound interest) is 14.2% . That is very high profitability.
On the other hand, the maximum drawdown is 78.5%. That is dangerous state.
This may be because the initial deposit is too small. If the initial deposit is small, the profit rate will be high and very impressive.
Although the vendor’s own recommendation is 0.01 lots for $ 4000, at the beginning of the forward test the balance is $ 2000 and the lot size is 0.6 to 1.0 lot. Probably 78% drawdown occurred at this time.
With the recommended balance and lot size, the drawdown would have been much smaller.
Equity graphs other than those in the initial period of operation are not at such high risk, and are generally in good condition.
However, if did not take risks in the early stages of operation, the profit rate might have been a little lacking impact.
Trading Method Analysis – Grid trade
FOREX GUMP EA is a grid trade EA that repeats entries at narrow intervals.
The MT4 transaction history chart below is EURUSD one hour timeframe. You can see how a very large number of entries fill the chart.
■EURUSD 1H White＝BUY Red＝SELL
Entry is repeated at intervals of about 20 pips each time the market moves in a disadvantageous direction.
As for the first entry, there is a tendency to make entries in the trend direction. Therefore, if get on the trend, will continue to accumulate take profit.
The following MT4 trading history chart shows how Sell entries and take profits continue in downtrend.
■EURUSD 5M White＝BUY Red＝SELL
In this way, make entry in the trend direction and take profit. This pips distance is about 7 pips.
On the other hand, if the price moves opposite to the trend, Wait for price reversal while making additional entries.
Trading Method Analysis-Lot Size
Since it is not a martingale EA, the lot size does not increase with each additional entry. Repeat the entry with fixed lot size.
Therefore, will not exit unless market price reach the point where profits will be generated in more than half of the opened positions.
In the case of the martingale EA, which makes entries while increasing the lot size, the profit will come out even with small price return instead of increasing the risk
On the other hand, grid trading EA such as FOREX GUMP EA does not increase the lot size of additional entries, so the risk per position is smaller than that of martingale. However, unless the profit is generated in more than half of the positions, the profit is not generated in the account.
It doesn’t mean which is better and which is worse.
Trading Method Analysis – Loss Cut
Loss cut is not set for individual positions. When floating loss occurs, additional entry recovers.
You can specify the maximum drawdown as percentage by setting the parameter “Safe Equity Risk”, and when the specified value is reached, all positions will be closed.
(In the forward test, it was probably not set when large drawdown occurred at the beginning of operation.)
Therefore, it is possible to prevent a scenario in which the account collapses at once.
However, although it depends on the balance and lot size settings, if you dislike risk and set it too low, such as 10%, frequent loss cuts will prevent it from achieving original performance.
It is better to set at least about 30%.
Trading Method Analysis – Frequency
FOREX GUMP EA is a grid trade EA with high trading frequency. Holds innumerable number of positions as it moves on 9 currency pairs.
Especially for pairs such as EURUSD and EURJPY, which are frequently traded, if the previous position is closed, the next entry will be made immediately.
In other words, it does not mean finding the entry points. Judging whether to Buy or Sell based on the market trend, make entry for either. Grid trade after the first entry.
The number of transactions for each currency pair is as follows.
■ Number of transactions / profit and loss by currency pair (2018-7-5 ~ 2020-5-3)
|Currency pair||Number of transactions||Profit and loss|
Forward Test Environment
FOREX GUMP EAl’s forward test environment is a 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.
FOREX GUMP EA targets large pips, so it is expected that the results will not change significantly between demo and real.
In the first place, the results with real account is open to the public, so it can be considered that it has been proven that profits can be made with real accounts.
Back Test Result
FOREX GUMP EA backtest results not published
Minimum deposit amount
The recommended minimum deposit of FOREX GUMP EA is $ 4000, which is high.
The recommended lot settings described in the manual are as follows.
If you want to use with a small balance, there is a method of operating with limited currency pairs.
However, if the balance is too small, it will not be able to withstand the floating loss, and there is a high risk of bankruptcy.
EA name displayed on MT4. You can leave the default settings
Enter the license number written in the purchase email
A serial number that is automatically assigned to transactions. You can leave the default settings.
Lot size for first entry. 0.01 lot for $ 4000 in 9 currency pairs
Martingale setting. How many times the lot size will be from the last time
Pips width from the previous entry at the time of additional entry
Take Profit value
Allowable slippage value
Maximum number of positions
Balance protection function. Whether to close all positions with the maximum drawdown value specified in “Safe Equity Risk”.
Enter the percentage of drawdown to allow. When the set value is reached, all positions are closed.
Summary of FOREX GUMP EA
|Name_EA||EA name displayed on MT4. You can leave the default settings|
|License||Enter the license number written in the purchase email|
|Magic||A serial number that is automatically assigned to transactions. You can leave the default settings.|
|FirtsLot||Lot size for first entry. 0.01 lot for $ 4000 in 9 currency pairs|
|Multi||Martingale setting. How many times the lot size will be from the last time|
|Step||Pips width from the previous entry at the time of additional entry|
|TakeProfit||Take Profit value|
|Slippage||Allowable slippage value|
|OpenOrdersLimit||Maximum number of positions|
|SafeEquityStopOut||Balance protection function. Whether to close all positions with the maximum drawdown value specified in “Safe Equity Risk”.|
|SafeEquityRisk||Enter the percentage of drawdown to allow. When the set value is reached, all positions are closed.|
FOREX GUMP EA is an EA that always holds positions and makes profit through grid trading.
Therefore, if the market moves abruptly, it will have a large floating loss. When operating with multi-currency pairs, the risk increases, so operating with a large balance is must condition.
However, it is also true that high profitability can be expected because high-frequency transactions with multi-currency pairs, although it is necessary to take risks with large balance.
The point is high risk and high return.
Recommended Broker for FOREX GUMP EA
Some brokers offer 100% deposit bonuses that double your balance.
Grid EA like FOREX GUMP EA operates with floating loss, 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.)
With a deposit of $ 500, you can trade twice as much as $ 1000, and the maximum leverage is 888 times, which is the most advantageous operating environment for FOREX GUMP EA.
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.