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Funnel Trader boldly promises its users rapid, exponential gains upon using the EA. How accurate is this claim? The bot’s sales website compares the difference between investing in the stock market and trading on Forex. The bot’s creator comes to a conclusion that the returns from a stock trade take almost a decade to materialize, but in one year, his forex trade gets the same percentage profit, but you can withdraw the returns at any time.
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What is Funnel Trader?
Funnel Trader is an automated forex bot that works by riding the wave of short term trends to trade on currency pairs. As stated on the website, the bot’s creator is Lance Hunter, who claims he isn’t an actor but has no online presence whatsoever. Funnel Trader is also part of LeapFX, a team of developers who create similar Forex robots. We are uncertain about where the bot is hosted, or the company’s office is.
Advantages of Funnel Trader:
- Proven ability to make a profit
- The robot has just begun its profit trend
- Accessible to both amateur and professional traders
- The robot doesn’t use market analysis
- Doesn’t use trade management techniques
- The developers provide proof of success through detailed trading statements, 3rd party verification and investor access.
You can buy the bot one of two ways. You can get the one year access at $397 that gives you full access to the bot, trader support, recommendations, updates and upgrades. For $799, you get all these features for a lifetime. You have a risk-free trial period for 30 days, within which you can get a full refund of your purchase price, with no questions asked.
EA Review: How it Works
Lance Hunter cannot detail how his bot works, despite having an entire webpage filled with a wordy sales pitch. He says that because his bot is fully automatic, traders from all walks of life can sit and relax once they set the initial parameters of the bot upon installation.
With Funnel Trader, Lance claims that you won’t have to do any market analysis, trade management or guessing. The bot will look for short term trends by analyzing market trends and trade in that direction, sometimes using many trade pairs at a time. According to the sales site, the bot will balance risks out, protect your money from loss while making you a profit.
EA Review: Stats and Trader Reactions
We first analyzed Funnel Trader’s sales site and weren’t impressed with it. It’s too wordy and has too much irrelevant information. The site seems too rushed and shoddily done. Then we went to the stats; Funnel Trader doesn’t have any backtests, so we can’t study the historical data. They, however, have live analysis of their data on Myfxbook. The last time they updated their data was in November 2020, and things weren’t looking so good.
The trader account, under MT4, started with a $5000 deposit. The daily gains at that time were 0.09% which is relatively low, and the drawdown shot up at 39.4%. The bot has only won 58% of the total trades and lost 42% of the trades, which isn’t profitable. The profit factor is 1.36, and the leverage, 1:200. The 39.4% drawdown is on the higher side as that reduces a trader’s gross profit. The drawdown, however, got to its highest in May 2020.
From the initial deposit, the account was able to grow to $24862.07, with a $1027.86 interest. The last time the developer updated this was November 2020. The total gains came up to about 397%.
Funnel Trader was able to win 9774 trades out of 16972, which is slightly above 50% of the trades. It won 57% of both the long and short trades, with the best trade being 1106.72 and the worst being a 353.54 loss.
The monthly analytics show an unstable robot, it didn’t trade in losses in 2020, but the monthly gains were minimal. It gained 0.85% in January, 2.82% in February. These percentages represented the normal ranges throughout the year, except for a 15.1% gain in March. Funnel Trader experienced its highest gain in October, with a whopping 24.53%.
We haven’t found substantial user reviews, and those we found varied from highly positive to highly negative reviews.
Final Thoughts
We have studied the bot and statistics and found them wanting. The losses are pretty high, and the profit factor was a meagre 1.36. We need to define the profit factor to understand why it’s so important. The profit factor stems from correlating the gross profit and the gross loss. It’s the ratio between the total profit and total loss. Therefore, a profit factor of 1 would mean that what you got as profit and loss are the same. For the trading robot’s real account, 1.36 is just slightly above one, which means that the losses were overwhelming throughout the trading period.
The drawdown is a major determining factor of whether the interest will reduce the gross profit to nothing. The actual account showed a drawdown of 39.4%, which is above recommended levels of below 20%. The average win rate is also dismal. Imagine a 57% win rate; with the huge 39.4% drawdown, you have nothing left in the end.
The creator didn’t offer any backtests. Although backtesting isn’t always an accurate representation of how the forex robot works in real life, it’s an excellent way to analyze its functioning for technical and theoretical flaws. The traders can also study the strategies and optimize the workings of their real trading accounts, especially if the backtests have been developed accurately. Without the presence of backtests, we expect either a free trial or that demo accounts be available to try out on.
The website doesn’t tell us anything about the bot’s creators other than the name provided and the team that makes it. The robot is devoid of transparency, which is an essential aspect of trading because these are people’s investments on the line. We don’t recommend trading with this bot.