Review Updated: 30th Nov 2009
Robominer is a grid trading robot. It works in the theory that using prudent money management, no matter what the price went to in its historical operating range, the trader using this strategy will not ever get a margin call. This is achieved by limiting the contract size of the investments to a small percentage of the equity balance.
Types of Robot: Grid Trading Robot
Broker Platform: Metatrader 4 (Work on both 4th and 5th decimal brokers)
Back-test and Forward Test Generated: Alpari UK
Price: $497 (one time payment) or $39.99 recurring monthly subscription
Refundable: No, it allow demo testing by registering with their website prior to purchase
Pair: Aud/Nzd and Eur/Chf
1. Money Management
It is unique in its way because money management is calculated by balance factor in this strategy. In its default setting, every $4,000 in your equity, the robot will add 0.01 volume (1 micro lot). If you have an account size of $10,000, you will start trading with 2 micro lot.
The idea for this strategy is regardless of what how much the price moves, the trader will not ever meet a margin call. This explains for the very small contract size traded.
You can specify the balance factor, but by entering how much dollar to a micro lot. That is if you specify 3000, that will be for every 3000, the strategy will trade with 1 more micro lot.
The Back tested results showed a maximal drawdown of not more than 20% the past 4 years. Positions are entered only with a fixed take profit levels. They will only be closed if their take profit levels are achieved.
Most of the drawdown are paper loss, that is loss will only be realized if positions are closed. Hence, drawdown stated in this strategy is usually not reliable because we could not predict how much paper loss the system will generate during times when it has 10 opened trades lying for a few months and price facing the potential of breaking its historical extremes.
Order Type = Market Order
Take Profit = 40 pip ( Eur/Chf)
Stop Loss = N/A (Grid Trading does not trade with a stop loss)
3. Ease of Use
Most of the parameters are explained in the manual provided. Strategy provides a certain level of optimization. However, for those who have dealing first time with a grid trading robot will feel overwhelm. Luckily for this group of traders, you can simply trade with default conservative settings.
4. Honest Result
There isn’t much to compare between backtested and forward test results. Profitable closed trades are the only results you can see. There is also the floating profit you will want to take special attention at the forward tests.
Update: 30th Nov 2009
Our demo account was disabled by the broker. It is because robominer EA hasn’t placed any trade in the past 30 days. The above data is a new account and a fresh record will be taken from here.
5. Other Features
Parameters to Take Note (Optional)
Balance FactorFIFO (if NFA regulated)
Allow Internal Close (Can be enabled to close position before take profit level is met)
EmergencyCloseAllTrades (Only use this during emergency when decided to switch broker or nearing margin call)
6. Weaknesses (If Any)
– At least $10,000 should be Invested
This strategy should be traded with account more than US $10,000. More money invested to trade with this strategy will increases the probability of achieving a annual return of 33% ROI.
– Select Brokers that Offer Micro Lots Only
Choose brokers that allow trading with micro lots.
– Floating Loss
Accumulated positions may reflect a huge floating paper loss. User must be able to withstand paper loss as system is shown to withstand and close them with profits.
– Difficult to Backtest
Generating 1 year backtest took our team more than 1- 2 hours. It takes a lot of computer resources and 1 backtest can only be done at a time.
Provide demo testing before you buy. Support consists of forum. Provide quarterly updates.
We forward tested trading Eur/Chf with this strategy. We choose Eur/Chf instead of Aud/Nzd because Eur/Chf has a lower spreads than Aud/Nzd. This strategy works extremely well for people who have a lump sum and are concerned about taking too much risk and short term volatility in the markets.
According to the owners, they stated that strategy will bring at least 30% or more per annum. Back tests showed the past 3 years brought in at average 30% ROI per annum. If proven true by forward test, these results beats the inflation by a big fat margin and is a very good investment compare to those you find at the banks.
For investors with small start up capital, it will clearly not be as beneficial to use this system. This is because for one to maximise the full potential of this system, users has to use it over the long term and to start with a considerable amount of capital to reap the full rewards.
If used over the long term, system will bring in small and consistent profits with minimal risk.
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