CabEX EA Review

About the CabEX Expert Advisor

6CabEX2070114

This expert advisor has been specifically designed to trade the GBP/USD currency pair using the hourly time-frame.

The acronym for this pair is CABLE, which is the primary reason why this particular name was chosen for this product. Why construct a robot that specializes in trading the GBP/USD? The inventors of this device explain in great length the rationale behind this decision within their promotional material.

For instance, this pair is often subjected to high levels of volatility and, as such, has a distinct tendency to generate erratic price formations and movements, such as unexpected spikes. Consequently, these features provide excellent opportunities to capture significant profits if a strategy or tool can be designed that can exploit them.

Why is so much Chaos Associated with the GBP/USD?

Fundamentally, Great Britain possesses the second largest economy within the Eurozone after Germany. Sterling accounts for less than 15% of the daily transactions conducted on Forex. As such, the British Pound tends to experience lower levels of liquidity than most other major currencies, especially the US Dollar, Euro and Yen. These reduced levels of liquidity are responsible for creating unexpected price spikes that can generate false breakouts and other technical abnormalities.

Another major factor is that the GBP/USD is heavily influenced by the release of key US economic indicators. Sterling is also intensely affected by the decisions made by the Bank of England and economic data published by the UK. This combination of features produces a very volatile environment in which Cable can experience dynamic price and noise movements making the task of designing a profitable expert advisor very difficult to accomplish.

 

Features of the CabEX

This robot has been explicitly constructed to harvest the erratic price formations associated with the GBP/USD in order to capture consistent streams of worthwhile profits. As stated, this tool only trades this currency pair using the one hourly time-frame. This product deals specifically with the associated noise problems by only opening new positions based on the closing value of the present time-frame. In addition, the Low, High and Close (LHC) prices are utilized to calculate the prevailing range of price movement and to devise a risk management strategy.

Essentially, the CabEX devotes its operational time between tracking new entry conditions based on closing prices and monitoring the prevailing level of volatility using the LHC values. By adopting this strategy, this product has the ability to lock-in profits while still allowing active positions sufficient room to grow. Noise is also filtered efficiently by using the closing price of the hourly time frame.

The CabEX has also been designed to identify price reversal and trends proficiently. Stop-losses and profits-targets are created for each active trade increasing the potential for maximum gains at minimum risks. A dynamic trailing Stop-Loss is also deployed which advances a stop-loss to breakeven for each active trade as soon as 50 pips are captured. A trailing-stop facility then continuously traverses forward by 50 pips whenever this amount is secured. This product has been programmed by utilizing such techniques to attain maximum profits with the overall intent of realizing a reward-to-risk ratio of 1.15:1

 

Key Actions of the CabEX

–      If no trades are active, a position will be implemented whenever entry criteria are satisfied.

–      If a Long trade is opened and a short entry criteria is encountered then the Long will be closed and the Short opened.

–      If a Long Trade is opened and a new long entry criteria is encountered then the new signal will be ignored.

–      If a Short position is active and a Long signal is detected then the Short will be closed and a Long position activated.

–      If a Short trade is active and a new Short entry criteria is detected then the new Short signal will be ignored.

 

Key Features of the CabEX

–      Trades price extremities and congestion zones

–      Functions primarily on the hourly Low/High/Close values

–      Operates proficiently with any Forex broker

–      Trades both trends and reversals equally well

–      Trades the GBP/USD pair only

–      Incorporates a risk and money management strategy

–      Deploys Stop-loss, Trailing-loss and profit-target modules

–      Boasts a win-to-loss ratio of 1.5:1

–      6 years of historical back-testing records

–      Activates one trade at a time

–      Is not based on any Martingale or Grid strategies

–      Is fully NFA compliant as it adheres to FIFO and does not support hedging

 

Performance Tests

The supporting advertising literature definitely paints a rosy and interesting picture of the CabEX EA. However, how does it fare in reality? Specifically, does this product generate a win-to-loss ratio of 1.5:1 and a reward-to-risk ratio of 1.15:1 as stated above?

A series of experiments were performed to provide answers to these key questions. The results of these tests are presented in the following diagram.

6CabEX1070114

 

Key Parameters

The key performance parameters of the CabEX are now calculated using the average values listed in the above diagram. The results can then be studied with the objective of assessing the true trading capabilities of this expert advisor.

1.       Win-to-loss ratio = 45%

2.       Reward-to-Risk ratio = 1.13

3.       Expectancy Value = -$2.10

The resultant parameters reveal that the CabEX EA will provide a loss of $2.10 for every single US Dollar that you risk over the long term.

 

User Comments

No user comments could be found by performing an internet search that either supported the CabEX or not.

 

Cost

The cost of a lifetime license to operate the CabEX EA is presently $350.

 

Verdict

The results presented above do not endorse this expert advisor in any way whatsoever. Specifically, both the win-to-loss and reward-to-risk ratios missed their marks, especially the former. The resultant expectancy value consequently reports a losing status if you operated this tool for any length of time.

However, if you still express an interest in the CabEX even after analyzing the above figures, then you should seriously consider implementing our advised plan of action. If you adopt this approach, you will be able to compare the performance of the CabEX with other expert advisors boasting superior performance parameters.

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