Pips Pilot EA (Trading Bot) Review 2024
At the first sound of robots, people either feel scared or threatened. You hear things like:
“This one will malfunction na”
“Give it time it will soon start losing more money than it has made”
“Will this mean there won’t be jobs for traders in hedge funds”
However, with Pips Pilot, my opinion about all these statements is that nothing can be further from the truth.
That is why I want to review this particular EA. In this article, I will be looking at a few points:
⦁ Owners of the Robot (Quick background check)
⦁ Strategy the Robot Uses
⦁ How the Robot Makes Money (Deep dive into the mechanics of Pips Pilot EA)
⦁ Risk Of Ruin (ROR)
⦁ Who is the Robot for (My two cents)
Owners of the Robot (Quick background check)
Pips Pilot EA is owned by a company called 4rexfundz, they are a network of traders, educators, and also tech-savvy individuals who are headed by their CEO Olarewaju Hazeez popularly known as Fx.Professor, an industry veteran with decades of involvement with the financial market.
The reason I am giving this very brief history is so the reader can understand that the EA (robot) was developed by traders, which means they know the special needs of different breeds of traders and their preferences, which have been modified in the robot’s mechanics.
4rexfundz is a subsidiary of Forexlyfe Academy which is also controlled by the same group of traders and headed by the same CEO, this is a company where they nurture aspiring traders into professional and profitable traders.
Strategy the Robot Uses
The robot deploys a popular strategy known as the Martingale Strategy and this generally implies adding to a losing trade, specifically doubling down! on a losing trade and continuing to double down on the trade as it goes on and on in a loss.
At some point, it is believed that the trader will win on a particular position, which will always be the highest-sized position in the set of trades.
This is essentially what the martingale strategy is about but, is this enough to make money?
You will discover, as I go on to the next topic.
How the Robot Makes Money (Deep dive into the mechanics of Pips Pilot EA)
Yes, we know what martingale is and how it operates, but I must say, Pips Pilot is more than meets the eye, I am not saying this to mean it is complex, but I am referring to the level of sophistication and flexibility it has unlike the traditional martingale approach.
How so?
Cool down, let me explain
I will break down my explanation into
⦁ First Positions Taken
⦁ Multiplier Effect
⦁ Drawdown (Good or Bad?)
⦁ What You See When in a Drawdown
⦁ The Turning Point
⦁ Averaging Magic
First Positions Taken:
Pips Pilot, depending on the size you want to put in, will inject your first order into the market and this order can either be random or planned trade by the trader in question, because essentially Pips Pilot isn’t a price action robot, rather it is a statistical money manager.
As I said your first order is set in the market and this doesn’t guarantee immediate profits, but per peradventure, you are in profits, you the trader also has the power to set where you want to be taking profits on every trade, automatically, and the robot will oblige, like clockwork entering trades and taking profits again and again and again at a size set for first positions (Lot Size).
Multiplier Effect:
Like the martingale, Pip pilot also adds to losing trades, and the form in which losing trades are being placed is dependent on the following factors
1. Your step size
2. Multiplier Factor
Step size: This means that at what point do you want to add to a currently losing trade, in terms of pips in drawdown, if you want trades to be opened every 7 pips in drawdown, you will have to input the value 70.0 on your settings under “Step Size”.
Multiplier Factor: This means, subsequent trades that are added as the price keeps going against you, how you want their size to be increasing, for example, if you pick a multiplier of 1.4 then your subsequent positions will open at the effect that 1.4 has on the previous position, and it keeps increasing the next position size accordingly.
A graphical representation is provided above, that is how the next position will be added on and on to the losing trade in bigger proportions.
Drawdown (Good or Bad?):
There is something important to note:
When the trade is going in your favor from the first position and on and on, the multiplier effect isn’t present in that, so the robot just repeatedly enters trades at a fixed lot, takes profit at a fixed target, and does the same over and over again.
But when you are in a drawdown, the story changes, and this is when people get apprehensive, and start to panic cause sometimes the drawdown gets very heavy, and depending on what your capital size is, you might not survive long enough to see good days, lol.
But the idea of this robot is that it makes more money when it is in a drawdown for even a long period, and when profits are taken, it secures that on its highest position size available, hence cleaning up the unrealized losses in effect. People who use this robot should in my opinion say (Unrealized Losses Mean Nothing), lol.
What You See When in a Drawdown:
When you are in drawdown under Pips pilot, you start to see your subsequent trade’s Take profit and previous trade’s take profit at the same price level, although this might seem like that means the older trades take profit have been moved to a point where would be regarded as a loss when hit, but There is a Method to the Madness.
The idea is that all positions should close once the biggest and most recent positions touch their take profit, and the average of the whole trades in the set would be realized.
The Turning Point:
Before:
After:
Here is when things get interesting, the turning point, as I like to call it is when the trade finally turns in your favored direction whether long or short, and this is where you start to see increasing losses and decreases. Read that again <<<<
Like the example above losses that were once on a floating value of -$12 are now at a -$7, and this only happens because the biggest position sizes are at the level where market direction started favoring your trade idea.
Averaging Magic:
This robot is designed to mirror the martingale strategy, and you already know how the martingale operates which is doubling down, this is also a variation of dollar cost averaging, only that in this situation:
1. We take profits when the market immediately goes in our Favour
2. We double down on losing trades (Depending on the Multiplier Factor)
3. we only add to existing trades when the market breaks a predetermined threshold (Step size value) in a direction against our favored direction.
We have been talking about a lot of good things, some critics may say, what are the disadvantages of this robot called Pip Pilot?
That takes us to the next topic >>>>
Risk of Ruin
Now, just like everything in life, there is a Yin and Yang (dark and light) Chinese proverb
What is the yin to the yang of pips pilot?
I can only point out one thing and that is
Under-Capitalization
Yes, people are trying to flip accounts with Pips Pilot, and that, although you might be lucky a few times, can cause total account ruin, dissipation, and cataclysm.
LOL, forgive my use of big grammar, I’m just trying to stress out the danger involved in undercapitalization.
If the robot isn’t given enough breathing room, it won’t perform its magic and you might think, oh well it doesn’t work. But nothing can be further from the truth.
And you can ruin your account if the market goes long enough against you. You can’t withstand all that draw-down on a 50-dollar or 100-dollar account size, even on 0.01 as the first lot size, due to the multiplier effect.
Who is The Robot For (My Two Cents)
The Robot can work for everybody but not anybody.
Everything in life has fundamental guiding principles one of which is Expectations
If your expectations do not align with the possibility of the robot, then I am afraid to say the robot won’t work for you, so forget it.
How can you manage your expectations to fit the robot’s principle?
I would take bullet points. 1, 2, ready Go…….
⦁ Pips Pilot Robot works better if you put enough money and test first with the lowest lot size to get acquainted with the workings. Enough money in my opinion is at least 500 dollars and the lowest lot size for forex is 0.01. You might say, how do I make money with 0.01, but that is why the robot has the multiplier.
⦁ If you know the points of support and resistance in the market you will do well with this robot. how so? ….. the idea of this robot is that either randomly or in a discretional manner, it takes the first trade, but if you know support and resistance areas in the chart, you can take a trade just about when the price approaches this area. Note* that I said just about when it wants to enter a POI and not when it is in the POI, and the reason for this is that, if you expect the price to turn or at least react at a POI it will be better to have taken your first position just before then, so the subsequent and larger positions will be the ones at the POI with a high likely hood of reacting up until take profit. This Increases Your Profitability In terms of wins and dollars gained.
⦁ Have a longer time frame perspective with the robot, think in terms of years, how much will I gain in X number of years if the robot, for example, keeps compounding at a rate of 2.5% per month? Do that math and put in a capital that fits your requirements.
⦁ The purpose of the robot is for passive income, and not for heavy-handed de-generate gamblers, LOL, sorry for the big words again, I get all grammatical when excited. So, you should pay attention to the robot with just minor tweaks, ON and OFF on days when you are not comfortable risking money, and also just Keep it at a speed in conjunction with your long-term goals. The goal should be financial freedom and returns that beat whatever the banks or S&P 500 can offer you.
That concludes it for this Pips Pilot robot review
Till we meet again, Be safe!
