Pips Leader – Brilliant Forex EA – But Be Careful!

Pips Leader – Brilliant Forex EA – But ONLY if You Use it Correctly

Recently I purchased and installed a new EA (Expert Advisor) to work on my MetaTrader 4 forex platform, called Pips Leader. Before I did so, I did a search in Google to see if there were any “real” reviews of this software.

I glanced past a number of so-called “reviews” of the software, which from my experience are more often than not, simply hidden sales pitches. I was looking for a forex trading forum, because that’s where you often get the most honest opinions – and from people who are actually using it.

Unfortunately, at the time of writing this, there isn’t much out there. I read one forum post from someone who called it “a dangerous piece of software” and claimed it cleaned out his $500 account. Well, I was curious and, relying on the unconditional 60 day money back guarantee, decided to purchase and give it a try.

I started with a demo account and ran it for a few days, just to see what happened. Let me say up front that I believe it is excellent software, but ONLY if you use it correctly – otherwise you can lose your entire bank. The rules are not complicated, but they must be followed, believe me.

My first mistake in testing this EA, was to try and run it on too many currencies at one time. This is because Pips Leader uses a “basket trading” strategy. The beauty of this system is that it doesn’t rely on price direction. It buys a basket of positions – for example, if it believes the price will rise, it may purchase say, 7 “buy” positions. If the price does rise, it simply takes a nice profit. However, if the price begins to fall instead, it will then take a number (or basket) of new “sell” (opposite) positions in order to “hedge” the original positions from loss. Once a disparity between the “buy” and “sell” positions occurs, which is favourable, it will then close all positions and take a profit. It does all the calculations for you.

The thing is however, in order to achieve the above strategy, when the price goes against expectations in the short term, the program may, at some stage, need to use more of your capital in order to “do it’s thing”. This is a VERY IMPORTANT reason why you should ONLY use it on one currency pair at a time – you don’t want to be greedy and overuse your resources. Running too many positions at once, on wrong currency pairs and trading lots of 0.10 it could easily wipe out a $500 trading bank. If you only have say, $500 to start with, then you would want to adjust the trading lots (you can do this) to about 0.02 until you build your capital to $1,000 then bring it up to 0.05. Once you reach $2,000 then you can safely start with 0.10 lots.

I have backtested Pips Leader on a few currency pairs and have found that the one it works best on, is the EURUSD for a one hour chart. Shorter timeframes tend to be more volatile and can result in losses. The EURUSD has a nice tight spread, which really helps.

I started running the software “live” on a bank of $2,500 last week and as of now, have achieved over $1,000 profit. If you backtest, you’ll observe that it doesn’t do this all the time (there will be some losses) but over a period of 12 months testing from January to December 2008, trading lots of 0.10 it made $21,492.61 profit. All this, with absolutely no input of your own – in other words, a passive income stream.

Well worth the US$77 price tag of the software, I think.

If you’d like to try the Pips Leader expert advisor for forex MetaTrader 4 platform, visit

http://www.pipsleader.com

Pips Leader