“At PipRider, we believe trading is a marathon rather than a sprint...”

Every experienced and successful trader will confirm that the key to their success involves staying in the game.  By that, they mean that they control and manage their money carefully and won't risk excessive amounts which could potentially be fatal.

There are plenty of stories of traders who have had a few good months, they've become complacent and thought they were invincible, and then have then blown their entire account inside of 24 hours.  The same can be said of MetaTrader MT4 Forex Expert Advisors, or EAs as they are also known.  The internet is full of stories of robots which have done well for a few months and then wiped entire accounts.

At PipRider, we would like to explain the benefits of a slightly different approach.  We believe it's a sensible approach which is cautious by nature.  It only risks a small percentage of an account, it sets realistic and attainable targets, it uses the concept of re-investing gains to create a compound effect on the returns and, most importantly, it certainly won't blow accounts!

Let's look at an imaginary user, Joe, who has $1,000 to invest.  A return of just 6% each month sounds very modest and, from PipRider, it is quite attainable.  In Joe's first month he will earn just $60.  Although this won't buy Joe a new Ferrari, if he re-invests his $60 profit, he will earn $63.60 in his second month.  And then $67.41 in his third month.  And so on .....

Believe it or not (and it's quite easy to do the maths to prove it), Joe's account will be up to $1,418 after just 6 months, and up to $2,012 after a full year, representing a 100% return on Joe's investment.

It gets even better though because, if Joe continues this process of re-investing his returns and doubling up each year, after 10 years Joe's $1,000 account will have grown by a massive amount to over $1 million!

The compounding theory is all very well, we hear you say, but what about the practice?  PipRider would need to make 6% on average every month for 10 years to deliver that sort of return.  Can PipRider actually deliver?

The answer is an emphatic YES!  Sure, some months it will make substantially more than 6% and other months it may even lose overall, but long term, PipRider delivers!

In achieving its great long term performance goals, firstly PipRider uses a little known, age-old technique that has been in existence since before the days of computers. 

The technique is not only simple but, most importantly, it has been proven to work over many decades.

Secondly, PipRider controls its drawdowns by only risking a fixed percentage of accounts.  Professional traders will never risk more than 4% or, at most, 5% of their account on any single trade.  This means that they can afford a succession of losing trades and still be able to return to the market to fight another day.  In actual fact, the default PipRider risk is only 3.5% of the account.

Finally, PipRider is profitable in terms of pips and, unlike many other robots, it doesn't use Martingale or any other account-blowing gambling technique to make its money.  In fact, PipRider returns an average of nearly 2,000 pips won each and every year and the backtests show that PipRider has made a very healthy return EVERY year.

No robot will make money every day of every week and bad times can happen without any prior warning, but by being profitable in terms of pips earned, PipRider is comfortably able to survive through any difficult times.

We wanted to be as honest and realistic as possible about what PipRider could achieve, so we backtested the robot over 11 years from 2000 through 2010.  For the backtests we used every tick MetaTrader data with 90% modelling quality.  Nowadays, most brokers offer very tight spreads on the GBPUSD currency pair but, to be truly representative of all brokers, we set the backtest spread to a conservative 2 pips to ensure that PipRider would be profitable with the vast majority of brokers.

We didn't stop there though, as we also tested PipRider using real tick data with a variable spread offering 99% modelling quality.  Once we had run these tests, we finally exported the results into a risk simulator to find out such things as the minimum account balance which would be necessary to run PipRider safely.

You can see the full 11 year backtest results from 2000 through 2010 by clicking here.

Strategy tests are one thing, but we are also very much aware that actual performance going forwards can be something else, so we also set PipRider up on an account to plot it's equity growth going forwards.  You can click here to see a real-time analysis of PipRider's most recent live trades taken by the latest version of PipRider which make up its daily live equity curve below.

For traders who like to know a bit about what their robot is doing, PipRider identifies trends on the 1-hour timeframe and waits for a price retracement before entering the market.  If the price doesn't retrace sufficiently, then PipRider will keep out of the market.  At all times PipRider keeps its users informed of what it is doing.

For the technically minded, PipRider will work effortlessly with every MT4 broker, including STP/ECN types as well as US NFA regulated brokers who apply FIFO and no-hedge rules.  It features automatic 4/5-digit broker detection requiring no user input, and also works with brokers whose minimum lot size is either 0.01 lot or 0.1 lot.

Lot size calculation is fully automated so that PipRider risks only a fixed percentage (which YOU choose!) of your account balance on each trade, and PipRider uses the dual approach of declaring a stop-loss and take profit value at the time of opening a trade for safety in case of unseen event such as a power failure, coupled with the stealth method which automatically closes trades if the underlying trend changes or when the time is otherwise right.

PipRider will typically place around 7 or 8 trades each week and the long term average rate of winning trades is around 83%.  Of the 17% losing trades, only around 3.5% end up running to stop-loss.  The stealth method ensures that the other 13.5% of of losing trades are closed ahead of the stop-loss being reached.  In fact, although the average stop-loss which is set when opening a new trade is around 94 pips, the average loss trade is less than 30 pips, demonstrating the effectiveness of the PipRider system.

This approach ensures that PipRider consistently returns a high profit factor whilst also keeping drawdowns as low as possible and it enables PipRider to maintain its very healthy risk/reward ratio.

So, now you know what PipRider is and does, why not find out a little bit more about ourselves by clicking here?