The ForexCapt EA is attractive and tempting to all for very good reason; it proffers steady growth of capital!
Never-mind that in order to accomplish this it relies upon two hard to achieve, classical, and well understood mechanisms to produce its positive posted result:
1 - A low reward to risk ratio of ~1:8 on each individual positions taken. This aides in its high win ratio; however, the overall success rate is entirely dependent upon the quality of the proprietary and undisclosed internal entry strategy accuracy.
2 - Whenever a loss does occur, a 'Makeup Trade' is prepped at ~10 X the original size and soon posted upon the next entry signal.
This is a mechanism designed to both recover the prior loss on that pair and to rejoin the originally targeted growth rate trajectory.
The success or failure of this approach depends entirely upon (and demands the laser accuracy of) future entries, in conjunction with well spaced & timed exits in order to completely avoid the infrequent yet inevitable disaster of a cluster of sequential losses.
Look closely and you will see that whenever a loss is incurred, the next signal in that pair is funded at an order of magnitude greater in size. (Ex: losing trade 0.02 Lot? Therefore, the make up trade is 0.20 lot. The second order makeup trade would need to be 2.0 lots; the third order? = 20.0 lots, etc. Now, I must say that this is somewhat less than strictly exponential in the cases illustrated; but, although I am not privy to the precise algorithm, the risk is obvious to this observer. I have written the vendor for a full explanation; and will update this post with the impartial results of later analysis as later obtained, if any.
I must update my previous posts and apologize for having missed a timely reply to my first inquiry of the vendor several weeks ago.
It seems his first reply was lost to a spam filter, and Steve sent me evidence of such.
Steve from ForexCapt today wrote:
"The system is designed in such a way that all possible drawdowns are limited. Even if lot size and stop losses seem too high, they are calculated, so that the loss of each session couldn't exceed the maximal possible drawdown, which is 17% in a default Auto-Pilot mode."
In the earlier reply Steve had indicated the EA contains an option for the user to enable or disable the Martingale strategy; yet even when enabled, it limits itself to just one level of recovery trade before reverting back to the initial lot size.
So it seems you can fly with the Forex Captain with or without employing the after-burners.
I have today requested of the vendor an opportunity to test this EA independently, and will keep you appraised.
Such models can be heart-stoppers, and you should carefully assess if you are willing to take 15%, or 40% historical drawdowns from a back-tested model into the future unknown.
However, assuming it works as demonstrated in the 2 modes advertised and for those willing to swing for the fences, this model should give you the tool you need to soar (if you can stomach the trapeze ride).
We will need to forward and back-test this flyboy to determine if the more conservative non-Martingale settings do indeed result in a profitable outcome over time, since the vendor as of yet has published no performance results for that particular arrangement on the website.
I also urge him to reply to this discussion page and address the issues of other products he may possibly be offering along with the prior results.
Everyone here wishes for our mutual success; and readers should remember the Wright Brother didn't succeed with their first model either but personally, I'm glad they did not give up trying. So Steve, please explain, that we all may follow and enjoy the true spirit of invention and path to success.