FXCharger Review and Risk Analysis
FXCharger is an EA based on martingale sold by the same company as FXStabilizer.
The performance on Myfxbook has great results, so I think it is a good EA.
However, if you are purchasing it, it is recommended that you understand the nature of the risk of this EA before purchasing.
FXCharger Price and Purchase Pattern
■FXCHARGER BASIC【Price: $385】
Available only for EURUSD currency pairs.
■FXCHARGER MAX【Price: $495】
Available in EURUSD, AUDUSD, EURGPB currency pairs.
It can not be run simultaneously on three currency pairs.
You can choose one of three currency pairs.
Also, there are more parameter setting items than the BASIC version.
The MAX version is also available for EURGPB currency pairs. However, developer recommend not to use with EURGPB currency pairs until the end of Brexit’s confusion.
FXCHARGER Trading Environment
It is necessary to follow the recommended minimum deposit and leverage.
Even if some equity drawdowns occur, martingale-based EAs get profit from small market reversals by raising the lot size,
So it’s dangerous to not follow the recommended minimum deposit and leverage.
It is better to choose a broker with high leverage.
Also, if the currency of the account is not USD, it is dangerous because the lot calculation may go wrong.
The good thing is that this EA is not greatly influenced by the speed of the VPS and the spread of the broker.
FXCharger Live Performance
The results for each EURUSD, AUDUSD, EURGPB currency pair are published on Myfxbook.
All three have small drawdowns and excellent results.
The martingale EA is characterized by a beautiful curve with few irregularities.
Analysis of FXCharger Transaction History
Based on the published results of EURUSD, the features of the transaction are as follows.
Start from hedge position
Initially, both BUY and SELL positions are placed. In other words, the trade starts from the hedged position.
Close the position of the profiting side when the market price moves about 100 pips.
Since the trade has started from the hedge position, the profit / loss is 0 at this point, excluding spreads and commissions.
If the market moves further in the same direction as before, the loss of the held position will increase.
As losses increase, this EA will increase lot size and open position.
Lot size increase rate and maximum number of positions
For example, if the initial lot is 0.1 lot, the lot size will increase to 0.4 lot, 1.6 lot, and 6.4 lot as the equity drawdown increases.
In other words, the lot size increases 4 times from the previous position.
The maximum number of holding positions is 4. There are no more than 5 positions.
Direction of first position is random
When a series of positions are closed, both BUY and SELL positions (hedge positions) are opened at the nearest fixed time on the day or the next day.
The position is not open due to any signal, but the position will be open when the time comes.
In other words, it will always have either BUY or SELL position.
Some people may feel that ”it is ridiculous to have a position if time comes….”
However, being able to make profit regardless of the market conditions at the time of opening position is good part of this EA.
FXCharger Risk Analysis
The lot size increases by 4 times and has up to 4 positions. So when losses occur, they are relatively large.
AUDUSD account was broken in the past
In fact, in the AUDUSD currency pair, the vendor’s account has been destroyed.
There is no record in Myfxbook, but the account balance reaches zero in July 2017.
In response to the fact that the account was destroyed, the developer explains as follows.
“To get people interested in this system, we need to show high profit rates in the public results of Myfxbook. So we were running EA with 100% risk setting. On the other hand, we recommend that customers set the risk setting of 20%. If general customers follow the recommendations and set the risk to 20%, it will not happen that their account balance will be zero. ”
FXCharger Risk Control Method
The parameter of FXCharger has “Max_Risk”. “Max_Risk” can be specified in percentage.
If equity drawdown of the percentage set in “Max_Risk” occurs, the held position is closed.
It is designed not to incur any loss beyond the specified range.
This means that you can specify stop loss as a drawdown percentage.
In addition, the initial lot size is set automatically according to the percentage of “Max_Risk”.
According to the developer, setting “Max_Risk” to the recommended 20% will almost eliminate the possibility of the account being destroyed in one go.
But the problem is that by lowering the “Max_Risk” percentage, the profit is also reduced.
Profitability decline due to risk reduction
The release results of the EURUSD pair on the myfxbook were also initially operating at 100% risk setting.
However, the risk setting has been lowered from 100% to 20% after the AUDUSD bankruptcy occurs.
As the risk is reduced, the monthly profit rate also falls.
The table below shows the transition of monthly profit rates as a released result of FXCharger -EURUSD.
At first it showed high monthly profit rates. However, monthly profit rates have fallen since July 2017 when the risk setting was lowered.
Let’s compare with July 2017 as the boundary.
After lowering the risk setting, the average monthly profit rate is 2.8%. It may seem a bit low, but it is a good system if you can get 2.8% per month stably.
Recovery trade after stop loss
However, about 20% of drawdowns and stop losses have occurred twice after July 2017.
If a 20% stop loss occurs, a monthly recovery rate of 2.8% will take approximately 7 months, simply calculating it.
If it takes about half a year to recover the loss, the annual rate of profit will be about 10%.
On the other hand, the vendor’s release results have succeeded in recovering the loss in about two months.
That’s because the vendor raises the risk after 20% drawdown and stop loss occured.
Risk during recovery trading
By raising the risk of trading, you can recover quickly.
On the other hand, as in the case of AUDUSD bankruptcy in July 2017, there is also a possibility that the account will be zero in an instant.
The developer explains as follows about raising the risk after the occurrence of stop loss.
“There has been no loss from reaching the stop loss level ever since 2013 in the back test. Reaching the stop loss level is a very rare case. There is almost no possibility that the stop loss will occur in a very short period of time. So after stop loss there is a chance to raise the risk level and recover the loss. ”
The above developer’s comments were issued in May 2018, when the first stop loss occurred.
In fact, a second stop loss has occurred in September 2018, four months after that.
If the second stop loss occurred within two months of the first stop loss, the account may have been broken.
However, this is just an assumption, and since the account actually continues to be profitable without bankruptcy, it can be said that the developer’s argument is right for now.
Conclusion of FXCharger
The EA that works by the logic to predict which direction the market will go is delicate. If time passes and the movement of the market changes, profits tend not to come out.
On the other hand, I think that FXCharger is simple and rational because it generates a profit from the up and down nature of the market.
I think it is a great EA, as the results published on Myfxbook show good results.
There are not many EAs that accumulate profits more stably than FXCharger in forward testing.
Operating at the recommended RISK setting of 20%, and operating in recovery method by raising the risk setting after a stop loss occurs, you will get profit of about 3% monthly interest.
However, there is risk that the account will collapse if the market moves unilaterally enough to cause a stop loss again in the one or two months after raising the risk setting after the stop loss has occurred.
If you use this EA, you should be prepared for this risk.
Conversely, if you do not increase the risk setting, the expected profit will be lower.
The developer explains that the situation where stop loss occurs twice in a short period is almost impossible from the result of back test and forward test.
In my personal opinion, this EA has actually been doing well in the past, so I think it will continue to make a profit with a high probability.
I don’t hear too many bad rumors about this EA, so I think that if you run it according to the recommended settings, you will get the same profit as the developers.
Once again, if you use it, you should understand the risks.
Using a broker’s deposit bonus is an effective way to withstand the floating losses of Martingale EA.
However, it should be noted that the deposit bonus of most brokers is counted only in the “how big position you can have” part, and the bonus will disappear if you lose more than the deposit amount It has become. That is, the bonus cannot endure the floating loss.
On the other hand, the deposit bonus of the XM standard account is designed to cover floating losses. This is a considerable advantage.
Account opening $ 30 bonus, double deposit up to $ 500, 20% bonus above $ 500 (up to $ 5000). This is in very good condition.