In this post I will be reviewing the Inertia Trader automated forex trading system for the Meta Trader 4 trading platform. The developer claims that this forex robot has the potential to double your account in just a few months – current real account results verified by MyFxBook are showing over 200% gains in around 6 months – not too bad at all! Draw down is around 22% but when you read on and see that it uses a good risk to reward ratio you can understand there will be times of draw down whilst waiting to catch the bigger moves. This forex robot can be used by any level of trader and is easy to get setup and running on the Meta Trader 4 trading platform in just a few minutes. The developer talks about his back story and how trading binary options eventually let him into forex and that this system he developed has been making him good amounts of profit. He also emphasis how he focused on a strategy that made a good amount of profit but without requiring too much risk – music to the ears of all traders I am sure. A lot of time and effort has gone into the strategy and automating it so the developer deserves respect from that aspect at the very least.
Inertia Trader Trading Strategy
Inertia Trader is a fully automated trading strategy that does not incorporate any high risk money management strategies in order to generate a good win rate. The strategy is based on the top performing system of 10 original ideas tested by the developer. It aims to “exploit the concept of price inertia, which means it completely focuses on the physical properties of price momentum.” It will closely monitor the charts in anticipation of quick movements. When such movements occur, it will then determine if it is likely to continue by conducting a detailed technical analysis and entering the trade should it be considered high probability according to a combination of determining factors. This is a solid strategy when you consider it is momentum that moves the market and getting on the right side of the market is half the battle – with money management also being of primary importance. In saying that, the money management used is sound with a good risk to reward ratio and dynamic stop/profit levels to adjust to constantly changing market conditions. The take profit is at least a third larger than the stop loss which means you will not see one losing trade wipe out consecutive wins. The Inertia Trader trading strategy does not repaint and works based on closing prices only. There are no dangerous grids, hedging strategies, martingale money management or arbitrage. It also has a built in spread and slippage filter.
Inertia Trader Back Testing
There is a very interesting back test on the Inertia Trader website. It is on the EURUSD 5 minute chart going all the way back to 2004. It has 99% modelling quality which one would assume means tick data was being used. However, I have never come across tick data prior to 2007 so would like to know how this was possible, if at all. It turned $1,000 into over $11,000,000 over this historical test data which you do not need me to tell you would be amazing if it would perform like that moving forward. Profit factor at 1.71 is very good with a winning trade almost double a losing trade and the win rate greater than 50%. Overall, these are very good trading result statistics which so far have been matched by the real tests. Considering there are over a thousand trades in back testing that would be an argument for the long term reliability of the strategy.
Inertia Trader Live Results
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Inertia Trader Summary
Overall, Inertia Trader is a very interesting concept that uses a unique entry based on market momentum. The money management is acceptable as are the results at the time of me writing this review. It is currently boasting a win rate north of 50% which is good when you consider a win is almost double a loss giving a neat 1:2 risk to reward ratio. It is not an aggressive trading system, so do not expect a ton of trades but that’s not a bad thing when it is picking trades that have higher probability. Too many traders as it is make the mistake of over trading and trading less also saves on trading costs from spreads/commissions! It comes with full support and a money back guarantee. The developer is very friendly and helpful with the best intentions to deliver a forex robot that makes steady and safe profits – backed up with real account results verified by MyFxBook.